Cleveland Clinic partners with Regent Surgical for ambulatory surgery centers
The collaboration is expected to reduce expenses for payers and patients as hospital-based procedures cost up to 167% more than ASCs.
Photo: Courtesy Cleveland Clinic
Cleveland Clinic is partnering with Regent Surgical to combine lower ambulatory surgery center rates with the health system's clinical expertise.
The partnership is expected to reduce expenses for insurers and patients through expanded access to cost-effective outpatient ASC procedures.
Cleveland Clinic and Regent plan to develop future ASC locations in U.S. markets, with the health system the majority owner of the joint venture that will have its branding on the ASCs.
WHY THIS MATTERS
Hospital-based surgical fees are, on average, 101% to 167% higher than those for the same procedures performed in ASCs, according to Regent Surgical.
The cost gap is because of higher hospital costs due to overhead to cover round-the-clock staffing, emergency services and ICU support; administrative expenses; regulatory burden and capital costs; and increased reimbursement rates from insurers and Medicare.
Medicare typically pays Hospital Outpatient Departments (HOPDs) more than ASCs for many outpatient procedures.
ASCs can perform many of the same surgeries while charging Medicare and insurers less and requiring lower out-of-pocket costs from patients, Regent said.
THE LARGER TREND
Regent partners with health systems to operate ASCs across 13 states.
Based in Franklin, Tennessee, it is owned by a combination of private equity firms and health systems, with Ascension and now the Cleveland Clinic investing in the model.
Mass General Brigham announced a collaboration with Regent Surgical in February.
The U.S. Ambulatory Surgery Center market is poised for substantial growth and is expected to reach $60.8 billion by 2030, GlobeNewsWire said in July 2024. The market expansion is being driven by advancements in surgery-related technologies and increased efficiency, the report said.
Physician-owned ASCs dominate the market, the report said, and orthopedics maintained the largest market share in 2023.
ON THE RECORD
"Ambulatory surgery centers provide an important setting for health systems to expand access to surgeries, and to be more efficient in the delivery of services," said Cleveland Clinic CEO and President Dr. Tom Mihaljevic. "Regent's capabilities in managing and operating ambulatory surgery centers will enable us to focus on continuing to provide the highest quality care for our patients and will enhance our ability to grow and offer that care to more patients."
Email the writer: SMorse@himss.org
