ASC Anesthesia Billing A Comprehensive Guide.pptx

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ASC Anesthesia Billing: A Comprehensive Guide

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Relationship between ASC and Anesthesia Providers
Before understanding ASC anesthesia billing, let’s review three different types of relationship between ASC
and anesthesia providers. When considering the relationship with anesthesia providers for an Ambulatory
Surgical Center (ASC), there are three primary types to evaluate:
• The first option is hiring an MD or a Certified Registered Nurse Anesthetist (CRNA) as an employee of
the ASC.
• The second option is establishing a non-exclusive contract with an outside anesthesia group or an
individual anesthesiologist/anesthetist.
• The third option is entering into an exclusive contract with an outside anesthesia group.
Let’s review ASC anesthesia billing for all these three arrangements.

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ASC Anesthesia Billing
1. On-staff MD / CRNAs Employed by the ASC
When an Ambulatory Surgical Center (ASC) has anesthesiologists or certified registered nurse anesthetists
(CRNAs) as full-time employees, the billing process for anesthesiology services typically follows certain
guidelines. Here's a detailed overview of how ASCs bill for anesthesiology services:
Documentation and Coding
Accurate documentation of the anesthesia services provided is crucial. The anesthesiologist or CRNA must
document the preoperative evaluation, the anesthesia care plan, and the postoperative notes.
The ASC must assign appropriate Current Procedural Terminology (CPT) codes and modifiers to the
anesthesia services rendered. CPT codes specifically designed for anesthesia services are used to describe
the complexity and duration of the procedure.

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Identifying the Appropriate Billing Party
ASCs have different options for billing anesthesiology services, depending on their specific arrangements:
• "Bundled" Billing: Some ASCs may choose to include the anesthesiology services in their overall facility
fee, billing payers directly for both the surgical procedure and the anesthesia.
• "Split" Billing: Alternatively, ASCs may opt for "split" billing, where the ASC bills for the facility fee, and
the anesthesiologist or CRNA bills separately for their professional services.
Billing Scenarios
• When using "bundled" billing, the ASC includes the cost of anesthesia services in its overall facility fee.
The ASC bills the payer for both the surgical procedure and the anesthesia.
• In the case of "split" billing, the ASC bills the payer for the facility fee, while the anesthesiologist or
CRNA bills the payer directly for their professional services.
• If the anesthesiologist or CRNA is an employee of the ASC, the ASC typically bills for the anesthesia
service separately, using the appropriate anesthesia CPT codes.

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Reimbursement
• The reimbursement for anesthesiology services in an ASC can vary depending on factors such as payer
contracts, geographical location, and the complexity of the procedure.
• Payers may have specific reimbursement rates or fee schedules for anesthesia services performed in an
ASC setting. These rates can differ from those applicable to other healthcare settings.
• It is important for the ASC to understand the reimbursement rates negotiated with various payers and to
ensure accurate coding and billing to maximize reimbursement.
Compliance and Documentation
• Compliance with applicable regulations and guidelines is essential for accurate billing and
reimbursement. ASCs must adhere to the rules and guidelines provided by Medicare, Medicaid, and
other third-party payers.
• Proper documentation is crucial to support the billed services. The ASC, anesthesiologist, or CRNA must
maintain complete and accurate records, including the anesthesia record, to justify the services
provided and billed.

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It's important to note that specific billing practices may vary based on contractual agreements, payer
policies, and regional variations. Therefore, ASCs should consult with their billing experts, compliance
officers, or professional billing services to ensure adherence to the applicable regulations and maximize
reimbursement for anesthesiology services.
2. A Non-Exclusive Contract With an Outside Anesthesia Group
When an Ambulatory Surgical Center (ASC) has a non-exclusive contract with an outside anesthesia group,
the billing process for anesthesiology services can vary depending on the specific agreements between the
ASC and the anesthesia group. However, I can provide you with a general overview of how the billing may
typically work in such cases.
• Separate Billing: In many situations, the ASC and the anesthesia group will bill patients separately for
their respective services. The ASC will bill for the facility fees, which include the use of the operating
room, supplies, nursing staff, and other related costs. The anesthesia group will bill for the professional
services provided by the anesthesiologists or certified registered nurse anesthetists (CRNAs) involved in
the procedure.

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• Coordination and Documentation: The ASC and the anesthesia group must coordinate their efforts to
ensure accurate documentation of services rendered. This includes proper identification of anesthesia
start and stop times, documentation of any additional procedures or services provided by the
anesthesia group, and accurate coding of the anesthesia services.
• Anesthesia Coding: Anesthesia services are typically coded using the Current Procedural Terminology
(CPT) codes. The specific code used depends on the type and complexity of the anesthesia provided.
There are different codes for general anesthesia, regional anesthesia, monitored anesthesia care, and so
on. The anesthesia group is responsible for assigning the appropriate codes based on the specific
circumstances of the procedure.
•
• Reimbursement: The ASC and the anesthesia group will have separate contracts with various payers,
such as insurance companies or government programs (e.g., Medicare or Medicaid). Each entity will
submit their respective claims to the payers for reimbursement. The ASC will submit claims for facility
fees, while the anesthesia group will submit claims for professional fees.

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• Reimbursement Distribution: Once the claims are processed and reimbursed by the payers, the ASC
and the anesthesia group will receive payments separately. The distribution of payments may depend
on the contractual agreements between the ASC and the anesthesia group. It could be a predetermined
percentage split, a fixed fee arrangement, or any other mutually agreed-upon method.
• Patient Billing and Collections: Patients will receive separate bills from the ASC and the anesthesia
group for their services. The patients may be responsible for paying co-pays, deductibles, or any
remaining balance after insurance payments. The ASC and the anesthesia group will handle their own
billing and collections processes to collect payments from patients.
It's important to note that the specific details of billing arrangements can vary depending on the
contractual agreements between the ASC and the anesthesia group. The terms and conditions outlined in
their contract will govern how billing, reimbursement, and payment distribution are handled in each
specific case.

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3. An Exclusive Contract With an Outside Anesthesia Group
When an Ambulatory Surgical Center (ASC) has an exclusive contract with an outside anesthesia group, the
billing process for anesthesiology services typically involves coordination between the ASC, the anesthesia
group, and the insurance companies or payers. Here is a detailed explanation of how the ASC anesthesia
billing process works in such a scenario:
• Pre-authorization: Before performing any surgical procedure requiring anesthesia, the ASC will obtain
pre-authorization from the patient's insurance company or payer. This step ensures that the procedure
and associated anesthesia services are covered by the patient's insurance plan.
• Patient Registration: Once the pre-authorization is obtained, the ASC will register the patient and
collect the necessary demographic and insurance information. This includes the patient's insurance
policy details, group numbers, and any applicable copay or deductible information.
• Procedure and Anesthesia Documentation: The ASC will document the details of the surgical procedure
and the specific anesthesia services provided. This includes information such as the type of procedure,
the duration of the surgery, the anesthesia techniques used, and any relevant medical codes (e.g., CPT
codes) associated with the services.

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• Anesthesia Group Documentation: The anesthesia group will also document the services they provided
during the procedure. This may include the type and dosage of anesthesia administered, any additional
procedures performed (e.g., nerve blocks), and any other relevant information related to the anesthesia
services.
• Claim Generation: Based on the procedure and anesthesia documentation, the ASC will generate a
claim, which includes the charges for both the surgical procedure and the anesthesia services. The ASC
will typically bill the insurance company or payer directly for the surgical procedure charges.
• Separate Billing for Anesthesia Services: However, the ASC will not bill directly for the anesthesia
services. Instead, the exclusive anesthesia group will bill separately for their services. They will use the
documentation provided by the ASC, along with their own records, to generate a separate claim for the
anesthesia services.
• Insurance Claim Submission: The ASC and the anesthesia group will submit their respective claims to
the insurance company or payer. They will ensure that all necessary documentation, including the
surgical procedure details and the anesthesia services, are included in the claims.

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• Adjudication and Payment: The insurance company or payer will review the claims submitted by the
ASC and the anesthesia group. They will determine the coverage and reimbursement based on the
patient's insurance policy and any applicable contractual agreements. The payment will be made
directly to the ASC for the surgical procedure charges and to the anesthesia group for the anesthesia
services.
• Patient Billing: Once the insurance claim is processed, the ASC will generate a patient statement that
reflects the patient's financial responsibility. This includes any applicable co-payments, deductibles, or
co-insurance amounts. The patient will be responsible for paying their portion of the charges directly to
the ASC.
It is important to note that the specifics of the billing process may vary depending on the contractual
agreements between the ASC, the anesthesia group, and the insurance companies or payers. It is always
recommended for patients to review their insurance policies and consult with the ASC and anesthesia
group to understand their financial responsibilities and coverage.

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About Medical Billers and Coders (MBC)
Medical Billers and Coders (MBC) is a leading ASC billing company known for its expertise in handling the
complex billing processes specific to Ambulatory Surgical Centers. With a deep understanding of ASC billing
codes, regulations, and reimbursement systems, MBC ensures accurate and efficient billing services for
ASCs. Our team of experienced medical coders and billers is well-versed in the intricacies of ASC
procedures, documentation requirements, and insurance claim submissions.
MBC's commitment to staying updated with the latest industry changes and compliance standards enables
us to maximize revenue for ASCs while maintaining compliance with healthcare regulations. For further
information about our ASC billing and coding services, please reach out via email at
info@medicalbillersandcoders.com or by calling 888-357-3226.
FAQs
Q1: What are the different types of relationships between ASCs and anesthesia providers?
A1: There are three primary relationships between Ambulatory Surgical Centers (ASCs) and anesthesia
providers:

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• ASCs employ MDs or Certified Registered Nurse Anesthetists (CRNAs) directly.
• ASCs establish non-exclusive contracts with outside anesthesia groups or individual providers.
• ASCs enter exclusive contracts with outside anesthesia groups.
Q2: How does an ASC handle anesthesia billing when the provider is an employee?
A2: When anesthesiologists or CRNAs are ASC employees, the ASC may use "bundled" billing, including
anesthesia in the facility fee, or "split" billing, where the ASC and provider bill separately.
Q3: What is “bundled” billing in ASC anesthesia billing?
A3: Bundled billing involves including the anesthesia service cost in the ASC’s overall facility fee. The ASC
bills the payer for both the surgical procedure and anesthesia services.
Q4: What is “split” billing in ASC anesthesia billing?
A4: In split billing, the ASC bills the payer for the facility fee, while the anesthesiologist or CRNA bills
separately for professional anesthesia services.

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Q5: How does billing work when an ASC has a non-exclusive contract with an outside anesthesia group?
A5: The ASC and the anesthesia group bill separately for their services. The ASC bills for the facility fee, and
the anesthesia group bills for the professional anesthesia services.
Q6: What are the key considerations for reimbursement in ASC anesthesia billing?
A6: Reimbursement depends on factors like payer contracts, procedure complexity, and geographical
location. Accurate coding and documentation are essential to ensure proper reimbursement.
Q7: How does an ASC manage billing when there’s an exclusive contract with an outside anesthesia
group?
A7: The ASC bills for the surgical procedure, while the exclusive anesthesia group bills separately for
anesthesia services. Both claims are submitted to the payer, and payments are made separately.
Q8: Why is proper documentation important in ASC anesthesia billing?
A8: Accurate documentation is critical for justifying billed services and ensuring compliance with
regulations from payers like Medicare, Medicaid, and other insurers.

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Q9: How does Medical Billers and Coders (MBC) assist with ASC anesthesia billing?
A9: MBC specializes in ASC billing and ensures accurate documentation, coding, and claim submission to
maximize revenue while adhering to industry regulations.

ASC Anesthesia Billing A Comprehensive Guide.pptx

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ASC Anesthesia Billing A Comprehensive Guide.pptx