AMSURG – one of the largest ambulatory surgery center (ASC) operators in the U.S. – is teaming up with a major West Coast health system.

The Nashville, Tennessee-based AMSURG announced Tuesday that it has established a new joint venture with Palomar Health. As part of the JV, AMSURG will work with Palomar via the system’s Poway Surgery Center.

The strategic partnership will enable the organizations and their affiliated physicians to increase access and quality outpatient care in Poway, California, and the greater San Diego market.

“Palomar Health is known for providing quality care and services for its communities, which is aligned with AMSURG’s model of clinical and operational excellence,” John Lamberth, senior VP of development at AMSURG, said in a press release. “Leveraging our organizations’ strengths and resources, this partnership will accelerate advancements in quality outpatient care and access for patients and communities in Poway and North San Diego County.”

ASC joint venture activity has steadily increased over the past few years, with hospital systems looking for expert partners to help them shift more services outside of the traditional hospital setting.

Strategically, health system-ASC partners can help systems reduce health care costs while also improving relationships with patients and payers alike.

On its end, AMSURG operates a network of more than 250 surgery centers nationwide. It became an independent company in November 2023 as a result of Envision Healthcare’s restructuring.

Poway Surgery Center is a freestanding, multi-use outpatient facility accredited by the Accreditation Association for Ambulatory Health Care (AAAHC). It has five operating rooms, with physician teams providing a variety of surgical care across multiple specialities.

“AMSURG’s vast ASC network, demonstrated commitment to clinical excellence and high standards for patient safety and experience benefit both our providers and the patients we serve,” Ryan Olsen, CEO of Palomar Health Medical Group, said in the statement. “We come together to bring a modern and innovative surgery center that helps integrate the newest technologies and practices in a beautiful place of healing.”

Olsen is also the chief ambulatory and strategy officer of Palomar Health.

“With aligned goals and values that prioritize patients, this partnership will ensure that our communities continue to access and benefit from quality outpatient care,” Olsen continued.

Palomar Health has two medical centers and more than 900 affiliated providers, collectively serving more than half a million people in its market.