Inside Sutter Health’s bold ASC strategy 

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Bradley Heaton, CEO of the surgery center division at Sacramento, Calif.-based Sutter Health, joined Becker’s to discuss the health system’s evolving ASC strategy and its plans for expansion.

“The ASCs within our system are a critical part of that work and what we’re trying to accomplish as a health system,” Mr. Heaton said. “[E]ven within Sutter Health, we are continuing to expand our footprint with more ASCs and have comprehensive plans to increase access in the coming years. Our goal is to provide more care for patients seeking high-quality, efficient and affordable healthcare.”

The health system currently operates 36 ASCs, but that number is set to grow.  Sutter Health plans to convert a 60,000-square-foot office building into an ASC and specialty clinic space. The system also plans to construct a flagship campus in Emeryville, Calif., featuring an ambulatory care complex and a 200-bed medical center.

“Patients increasingly want access to care locally, in an affordable and efficient setting,” he said. “ASCs provide that option for surgical care, allowing us, as a health system, to expand into communities where building a hospital or a more complex facility may not be feasible. ASCs fill that niche, enabling us to reach further into the communities we serve and provide a local option for care.”

One example of this expansion is in Folsom, Calif., where Sutter Health is investing $145 million in a 106,000-square-foot medical complex. The facility, which will break ground soon, will center around an ASC and house specialty physicians, general surgeons, primary care providers, and other specialists under one roof.

The three-story facility will also feature an expanded urgent care center with in-house imaging and lab services. It is expected to bring 25 new specialists to the area, including oncologists, OB-GYNs, neurologists, cardiologists, orthopedic surgeons, ENTs and urologists.

“This setup will enhance care coordination and provide patients with access to same-day procedures and other services in a convenient, centralized location,” Mr. Heaton said. “It’s a prime example of how a health system can develop a one-stop shop, meeting patients’ healthcare needs across the continuum of care.”

Sutter Health’s expansion efforts extend beyond Folsom. Mark Sevco, senior vice president and COO, told Becker’s that the system has “well over $1 billion in ambulatory projects right now,” with 27 projects underway across Northern California. Of those, 19 are slated to open in 2025.

In California, the demand for ASC-based care is growing. Mr. Heaton said this trend has prompted Sutter Health to take a more structured and collaborative approach to delivering care.

“We’re asking: How do we meet patients where they live and provide care in their communities?” he said. “Not just from a surgery center perspective, but also by integrating primary care, specialty care and urgent care. How do we coordinate their labs and imaging in a local setting so that all of their healthcare needs are met conveniently?”

Sutter Health serves one of the most diverse regions in the country, an opportunity Mr. Heaton believes will allow for more tailored care.

“We have surgery centers across a wide geographic range, from the heart of San Jose to suburban areas like Roseville and Fremont, and even in more rural communities like Yuba City and Modesto,” he said. “ASCs allow us to bring specialized care directly to these communities, which would be much harder to accomplish with a full-scale hospital.”

To further improve access, Sutter Health has begun establishing regional hubs — integrated healthcare centers that bring together primary care, surgical care, specialty care, labs and imaging in a single location.

With its strategic ASC expansion, Sutter Health is positioning itself to meet growing patient demand for accessible, high-quality outpatient care while strengthening its presence in communities across Northern California.

“ASCs already provide a lower-cost option, as we’ve discussed, but we’re working to make them even more cost-effective,” he said. “Controlling healthcare costs is a major priority, not just in our ASCs but across Sutter Health as a whole. It’s something that matters deeply to our patients and their families.”

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