The three organizations are launching a new company, bringing their distinct strengths together under one roof. Penn Medicine brings nationally recognized clinical expertise and a leading physician network. IBX contributes deep experience in improving access, affordability, and the health care experience for members, while Regent adds decades of expertise in developing, operating, and scaling ASCs across the country. Together, the organizations are uniquely positioned to expand patient access to high-quality surgical care in outpatient settings across the region.
"This partnership will help us meet growing demand for outpatient surgery while driving down the cost of care in our region and keeping Penn Medicine's standards for clinical excellence at the center of every decision," said Kevin B. Mahoney, CEO of the University of Pennsylvania Health System. "By expanding access to appropriate procedures in convenient, high-quality outpatient settings, we can give more patients affordable options closer to home."
ASCs make it possible for many procedures that once required a hospital stay to be performed safely in an outpatient setting, allowing patients to go home the same day. For common outpatient procedures, hospital facility fees can approach twice those charged in ASCs, reinforcing the opportunity to lower the total cost of care.
According to a study by Vizient, outpatient surgical volumes are projected to grow 20 percent through 2035, creating significant demand for additional ambulatory capacity. The new centers will support this growth across Penn Medicine's service area, which spans Pennsylvania, New Jersey, and Delaware.
"Health care needs to work better for the people we serve, and that means creating more convenient ways to access high-quality affordable care. MedPAC reports that Medicare payment rates for most services performed in ambulatory surgery centers are approximately 46% lower than in hospital outpatient departments." said Kelly Munson, president and CEO of Independence Blue Cross. "This partnership brings together the right organizations to expand access, improve affordability, and deliver a better experience for the people and communities we serve."
"The opportunity in front of healthcare isn't simply to build more surgery centers. It's to create the alignment required to move the right care to the right setting at scale," shared Travis Messina, CEO of Regent. "Penn Medicine brings extraordinary clinical expertise, Independence Blue Cross brings a unique perspective on affordability and value, and Regent brings the infrastructure and operating capabilities to translate that alignment into a scalable ambulatory strategy. Together, we have an opportunity to create a model that expands access, lowers costs and preserves hospital resources for the patients who need them most."
Beyond expanding access to care, the partnership is expected to create jobs, drive local investment, and contribute to economic growth across Greater Philadelphia. The actual timing, scope, and economic impact of future projects will depend on a variety of factors, including regulatory approvals, community needs, and market conditions.
As the network expands, the organizations hope to create lasting benefits for patients, communities, and the region's health care system for years to come.
About Penn Medicine
Penn Medicine is one of the world's leading academic medical centers, dedicated to the related missions of medical education, biomedical research, excellence in patient care, and community service.
The organization consists of the University of Pennsylvania Health System and Penn's Raymond and Ruth Perelman School of Medicine, founded in 1765 as the nation's first medical school.
The Perelman School of Medicine is consistently among the nation's top recipients of funding from the National Institutes of Health, with more than $588 million awarded in the 2024 fiscal year. Home to a proud history of "firsts," Penn Medicine teams have pioneered discoveries that have shaped modern medicine, including CAR T cell therapy for cancer and the Nobel Prize-winning mRNA technology used in COVID-19 vaccines.
The University of Pennsylvania Health System cares for patients in facilities and their homes stretching from the Susquehanna River in Pennsylvania to the New Jersey shore. UPHS facilities include the Hospital of the University of Pennsylvania, Penn Presbyterian Medical Center, Chester County Hospital, Doylestown Health, Lancaster General Health, Princeton Health, and Pennsylvania Hospital—the nation's first hospital, chartered in 1751. Additional facilities and enterprises include Penn Medicine at Home, GSPP Rehabilitation, Lancaster Behavioral Health Hospital, and Princeton House Behavioral Health, among others.
Penn Medicine is a $13.7 billion enterprise powered by more than 50,000 talented faculty and staff.
About Independence Blue Cross
Independence Blue Cross is an independent licensee of the Blue Cross and Blue Shield Association. Founded in 1938, IBX is one of the largest health insurance companies in Pennsylvania and the No. 1 preferred health plan in the Greater Philadelphia region. Committed to transforming health and health care, IBX offers a broad spectrum of health insurance products and services, including medical, dental, vision, and behavioral health coverage for individuals, families, seniors and employers. IBX is dedicated to supporting the health and wellbeing of the communities it serves through partnerships, corporate giving, and employee volunteer engagement. For more information, visit ibx.com.
About Regent Surgical
Headquartered in Nashville, Tenn. and founded in 2001, Regent is a leading partner to health systems and physician practices, specializing in the development, ownership and management of ambulatory surgery centers (ASCs) across the United States. With expertise in both single-site and multisite strategies, Regent leverages market-driven insights to develop customized roadmaps that foster growth and expand its presence within markets. Through its mission to redefine surgical care, Regent and its partners deliver superior clinical performance, patient experience and operational results to meet the evolving needs of healthcare providers and patients alike.
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SOURCE Penn Medicine, Independence Blue Cross, & Regent Surgical
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