Penn Medicine, Independence Blue Cross and Regent Surgical Launch Surgery Partnership
Penn Medicine, Independence Blue Cross and Regent Surgical are launching a first-of-its-kind partnership to build at least 18 ambulatory surgery centers across the region, the three organizations announced Sept. 24.
The new company will develop the centers across Pennsylvania, New Jersey and Delaware, which is the health system’s three-state service area. The timing will depend on regulatory approvals and community needs, according to the announcement.
An ambulatory surgery center is a medical facility where surgeries are performed without an overnight hospital stay. Patients arrive, have the procedure and go home the same day. These centers handle many routine operations, including orthopedic procedures, cataract removals and colonoscopies.
The promise for patients is lower cost and greater convenience. For common outpatient procedures, hospital facility fees can run nearly twice those charged at surgery centers, according to the announcement. Federal Medicare data cited in the announcement shows that Medicare pays roughly half as much for services done at surgery centers as for the same services in hospital outpatient departments.
Each partner brings a different strength to the venture. Penn Medicine contributes its physicians and clinical expertise. Independence Blue Cross, the region’s largest health insurer, focuses on access and affordability for its members. Regent Surgical, which operates more than 40 surgery centers nationally, will develop and run the facilities.
“This partnership will help us meet growing demand for outpatient surgery while driving down the cost of care in our region,” Kevin B. Mahoney, CEO of the University of Pennsylvania Health System, said in the announcement, according to PhillyVoice.
Outpatient surgical volumes are projected to grow 20 percent through 2035, according to industry research cited in the announcement. Patients whose doctors recommend surgery can ask whether their procedure is available at a surgery center, which may mean a smaller bill and a shorter day away from home.