Philadelphia-based Penn Medicine, Independence Blue Cross and Franklin, Tenn.-based Regent Surgical are building an ASC company with a structure Regent CEO Travis Messina said the industry has not seen before: a health system, a health plan and a management company, all as owners.
“All the research that I’ve done suggests that there has never been a partnership in the ASC space that included a health system, a health plan and a management company,” Mr. Messina told Becker’s. “We believe it’s the first of its kind in that regard.”
The three organizations announced Sept. 24 they will develop at least 18 ASCs across Pennsylvania, New Jersey and Delaware.
Why now
Mr. Messina pointed to two drivers. The first is the existing relationship between Penn Medicine and IBX. The two have partnered on other strategic efforts.
“This was a natural extension of the strong partnership that they have,” he said.
The second is federal policy. CMS began phasing out the inpatient-only list in 2026, removing 285 mostly musculoskeletal procedures in the first year, 271 of which are also permitted in ASCs. Payers have followed CMS in pushing site-of-service shifts, Mr. Messina said.
“The removal of the inpatient-only list and the need to create access, convenience and more affordability for patients really kind of accelerated the timing,” he said.
What each party brings
Penn Medicine brings clinical care and IBX brings its understanding of member access and affordability, Mr. Messina said. Regent’s role is ASC development and operations, expertise he said Penn and IBX knew they needed support in.
“They wanted this partnership to operate at scale, and they needed a partner to do that,” he said.
Regent now operates 40 sites across 15 states. The company has long focused on joint ventures with academic medical centers, a strategy Mr. Messina has described as running “toward areas others have avoided.”
Regent has never before had a payer as an owner in one of its ventures, Mr. Messina said.
Will a payer owner change the model?
Mr. Messina said he does not expect IBX’s ownership stake to materially change how the centers operate.
“Just because they’re an insurance company, it doesn’t mean that they’re any different than independent physicians with Regent and a health system,” he said. “They bring a different perspective, and candidly, one that I feel warrants itself to be present at the partnership table.”
A model for other markets
Mr. Messina said the structure could be replicated elsewhere, though every market is different.
“If you’ve seen one market, you’ve seen one market,” he said. “There are dynamics in Philadelphia that are replicated in markets across the country.”
The key ingredient is a payer and health system willing to work together.
“The willingness to recognize that you’re not adversaries, and you’re stronger together, is essential to making this structure work,” 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.
