Only 33% of ASC-eligible procedures in the Philadelphia region have moved to surgery centers, compared with 56% nationally, according to Regent Surgical data drawn from a Kythera Labs analysis.
Regent CEO Travis Messina said the biggest reason is who employs the region’s physicians.
“The Philadelphia market is really unique in that there are a tremendous number of employed physicians,” Mr. Messina told Becker’s. “I think that that dynamic is a direct contributor to the fact that ASC utilization in Philadelphia is far below the national average.”
Regent is partnering with Penn Medicine and Independence Blue Cross to develop at least 18 ASCs across Pennsylvania, New Jersey and Delaware, a venture aimed in part at closing that gap.
Academic medicine plays a role
The region’s academic medical centers also contribute, Mr. Messina said. Penn Medicine and Jefferson Health both have academic operations, which tend to draw higher-acuity patients.
“It’s a little bit of a market thing,” he said. “But I believe the largest contributor is the employment.”
The Philadelphia region has more than 100 existing ASCs, many focused on gastroenterology, according to the Inquirer.
A national shift
Philadelphia is an extreme example of a trend reshaping the ASC industry. Mr. Messina said about 70% of physicians are now employed, a sharp change from when the ASC industry was built on independent physicians driving growth.
Physician employment by hospitals and corporate entities rose from 62% in 2019 to 78% in 2023, according to a Progressive Policy Institute report cited by Becker’s in March.
At the same time, the acuity of cases that can be performed in ASCs has risen, Mr. Messina said. “Thus it takes a different operating model,” he said.
At the Becker’s 32nd Annual Meeting: The Business and Operations of ASCs, taking place October 29-31 in Chicago, ASC leaders, surgeons and healthcare executives will explore strategies to drive growth, enhance operational performance, navigate reimbursement challenges and prepare for the future of ambulatory surgery. Apply for complimentary registration now.
