Penn Medicine has formed a partnership with Independence Blue Cross and Regent Surgical to establish a new company dedicated to building at least 18 outpatient surgery centers across Pennsylvania, New Jersey, and Delaware. The collaboration marks a significant step toward addressing growing patient demand for same-day procedures while controlling regional healthcare costs.
Kevin B. Mahoney, CEO of the University of Pennsylvania Health System, emphasized that the initiative will maintain Penn Medicine’s clinical excellence as a central priority. Under the agreement, the health system will contribute its physician network and medical expertise, Independence Blue Cross will leverage its insurance industry knowledge, and Regent Surgical will oversee facility development and operations.
Mahoney noted the new centers will offer patients more affordable care options closer to their homes, reducing reliance on traditional hospital outpatient departments. The partnership aligns with broader industry trends favoring outpatient settings for routine surgeries, as hospitals increasingly face competition in this space.
Kelly Munson, president and CEO of Independence Blue Cross, highlighted how the venture aligns with efforts to improve care accessibility. She pointed to data from the Medicare Payment Advisory Commission showing that Medicare reimbursement rates for ambulatory surgery centers average 46% lower than those for hospital-based outpatient departments. This pricing difference creates cost savings for insurers and patients while potentially reducing revenue for hospital outpatient units.
A Vizient industry forecast, cited by the partners, projects outpatient surgical volume will grow by 20% through 2035, driven by advancements in minimally invasive techniques. These developments have made same-day procedures safer and more practical for conditions previously requiring overnight hospital stays.
The outpatient surgery sector has seen substantial financial growth, with revenue reaching approximately $45 billion in 2024 and expected to climb to $57 billion by 2030. This upward trajectory shows the sector’s expanding role in modern healthcare delivery.
Regent Surgical has already demonstrated its commitment to this model through a 2023 partnership with the Cleveland Clinic to develop outpatient centers in multiple markets. That agreement gave the clinic a controlling stake in the new facilities. Earlier this year, Ascension expanded its outpatient footprint by acquiring AmSurg for $3.9 million, adding 250 surgery sites across 34 states to its network.
