Calif. anesthesia group loses contract

Enloe Medical Center of Chico, CA has awarded a bitterly contested contract to Medcorp, a newly formed anesthesiology group set up to compete for the deal. The contract was previously held by Anesthesia Associates of Chico (AAC), a rival group that had provided services to Enloe for a number of years. The dispute is one of dozens currently taking place at medical centers across the U.S., as facilities struggle to cope with the continuing nationwide anesthesiologist shortfall. Driven by fear and need, hospitals and insurers are engaged in various power plays to make sure their access to this critical and, increasingly, expensive resource is maintained.

In this case, after a year-long contract dispute between the 16 doctors of AAC and Enloe, one anesthesiologist left the group to form Medcorp. Hospital officials at Enloe had hoped Medcorp and AAC would make nice and work together, but it didn't happen. Medcorp is now hoping to recruit the nine AAC anesthesiologists who haven't taken new jobs. In the mean time, Enloe is scrambling to find temporary anesthesiologists to cover its 10 operating rooms.

Previously, Enloe CEO Dan Neumeister and two members of the board resigned in June following a vote of no confidence. More than 40 doctors had written to the board complaining about Neumeister's management style, which they said emphasized profits and efficiency over quality patient care.

- read this Mercury-Register article

PLUS: With anesthesiologists in short supply, facilities are getting creative when it comes to contracting. Increasingly, hospitals are agreeing to share the financial risk when anesthesia groups hire, or simply pay the group a stipend to practice there. Article

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