Physician-owned Pelto Health Partners has launched an ASC platform initiative, extending its private practice model into the surgery center space and aiming to give physician owners more options without forcing them into a traditional management service organization structure.
Minneapolis-based Pelto was formed to help independent physician practices gain leverage through scale while preserving autonomy. The group was created through a collaboration among three physician-owned orthopedic groups: Durham, N.C.-based EmergeOrtho, Indianapolis-based OrthoIndy and Seattle-based Proliance Surgeons.
Now, the company is expanding its vendor ecosystem to support ASC development, management and performance improvement.
“What we found in the ASC development and management space is that there are so many options,” Rachel Uzlik, Pelto’s fractional CEO, told Becker’s. “There’re big-box options that bring certain value and opportunities to the table, or you could be self-managed, self-developed, and be wholly owned and managed by the practice.”
Ms. Uzlik said that range of choices, combined with the pace of the ASC market, has left many physician groups uncertain whether they are making the right decisions culturally, financially and operationally.
In response, Pelto evaluated the ASC landscape and built what it describes as a portfolio of best-in-class relationships to support independent physicians at different stages of ASC ownership and operations.
“We believe that autonomy and choice are so critical to independent practices, and we knew one size wasn’t going to fit all,” Ms. Uzlik said. “And so we were intentional in our approach of saying, ‘You know what? Sometimes practices are going to need an accelerated management partner or development partner that has payer contract access.’”
That flexibility is central to how Pelto distinguishes itself from a traditional MSO. Rather than imposing a single management model, the company positions itself as a physician-aligned platform connecting practices with a mix of partners, services and savings opportunities.
“We’ve been intentional in creating it that way,” Ms. Uzlik said. “Flexibility and autonomy are the heartbeat of independent practice. So it was critical when our physicians came to the table and said that they wanted to build something different, not the traditional MSO.”
Pelto’s ASC support spans the full life cycle of a center, from early-stage strategy to ongoing operations. Ms. Uzlik said that includes pro forma development, market evaluation, collaboration planning among physician groups, brick-and-mortar development, re-syndication and ongoing management.
The initiative was driven in part by savings opportunities Pelto identified among physician members already involved in ASCs.
“We found that many of our independent physicians have ancillary capability through ASC engagement, and what we continue to identify is that there is still a delta in opportunity for savings on the surgery center side,” she said. “ASCs grew so quickly that there has been a bit of a wash-rinse-repeat methodology over the past few years.”
Those savings have primarily come from supply spend, implant spend, capital equipment and procurement, according to Ms. Uzlik. Across two member practices operating individual and joint-venture ASCs, the program has delivered more than $1.2 million in annual savings.
“There’s an opportunity to be able to leverage the scale we’ve been able to find through our Pelto physician network that we’re recognizing translates to the ASC side as well,” she said. “We felt like we shouldn’t be holding on to that knowledge. Instead, we should be able to bring it to market and translate it really easily because so many of our independent physicians have diversified their interest in surgery centers.”
Ms. Uzlik said interest in the initiative has come from both Pelto members and the broader market, as independent physicians look for ways to capture more value from the shift to outpatient care. While traditional MSOs still serve an important role, particularly in areas such as revenue cycle, HR and operational support, Pelto aims to help physicians avoid a one-size-fits-all arrangement.
“That’s not to say MSOs are bad. They absolutely serve a purpose,” she said. “And to a certain degree, that’s what we’re partnering with our ASC MSOs for, that can overlay revenue cycle support or HR support or the doing of work so that they can focus on clinical engagement. But we partner with them to find the right mix so that behaviorally, culturally and philosophically, the physician groups find the right match so that they can continue to be successful.”
Ms. Uzlik said that alignment matters because mismatched vendor relationships can slow performance and create friction for physician groups.
“One of the things that has slowed down success, in my humble opinion, is this sense of lack of understanding between partners,” she said. “Especially in the managed services space, where you feel like they don’t understand you. You feel like you’re losing instead of winning.”
Because Pelto is physician-owned and physician-led, she said, its priorities are aligned with those of the independent practices it serves.
“Our tagline is ‘the alternative to the traditional MSO,’” she said.
