Image by N H from PixabayThe pediatric ambulatory surgery center (ASC) space continues to attract attention.
And as parents, payers and health systems look for ways to deliver safe, cost-effective care for children, operators are beginning to stake their claim in a market historically dominated by hospital outpatient departments (HOPDs).
Regent Surgical, a Nashville-based developer and operator of ASCs, is the latest to place a bet on the future of pediatric outpatient surgery. The company on Sept. 3 announced a joint venture with Patches Kids Care, a national ASC model developed by Blueprint Ambulatory Surgery Concepts.
The deal marks Regent’s first push into the pediatric surgery market, underscoring the growing importance of specialized outpatient sites for children.
“Partnering to build the first pediatric-focused ASC in our portfolio is both a strategic milestone and a reflection of our commitment to advancing access to high-quality, specialized surgical care,” CEO Travis Messina said in the announcement.
Moving forward, Regent will partner with Patches Kids Care to jointly develop and operate outpatient pediatric surgery centers, with the first location in Houston.
The partnership pairs Regent’s ASC expertise with Patches’ track record in pediatric care. Regent has spent more than two decades developing and managing surgery centers for health systems and physician groups, with some of its key JV partners being Cleveland Clinic, Mass General Brigham and Lee Health, among others.
“By aligning with the experienced pediatric care providers at Patches, we will deliver a new standard of outpatient surgical care tailored to younger patients, while offering an enhanced experience to their families and supporting clinicians in a more efficient and flexible care environment,” Messina continued.
Generally, pediatric ASCs are built and staffed to meet the unique physical and emotional needs of children. They are staffed by pediatric-trained clinicians and structured “around family-centered care,” Regent’s announcement explained.
The market opportunity is considerable.
An estimated 3.9 million surgeries are performed on children in the United States each year, according to health care data analyses. Roughly 450,000 of those are inpatient admissions, leaving millions of procedures handled in outpatient settings – many of which are increasingly appropriate for ASC facilities.
Additionally, data from 2006 estimate that at least 2.3 million surgical outpatient procedures were performed on children below 15 years of age in ASCs. With payers and policymakers pressing for more care to migrate outside hospitals, that figure has almost assuredly increased since then.
“Children deserve care environments that are as thoughtful and specialized as the treatment they receive,” Dr. Terrence Anderson with Patches in Houston said in the announcement. “We’re looking forward to partnering with Regent to leverage their expertise in ASC development and operations, bringing high-quality, child-focused surgical care closer to home for families.”
What’s more, pediatric outpatient surgeries are proven to be safe, with low complication rates.
In one study, pediatric orthopedic procedures performed at a freestanding ASC reported a complication rate as low as 3%, with only 16 of 3,780 patients requiring readmission within 30 days.
“These results were linked to specialized care teams, dedicated operating rooms, and precise preoperative protocols – reinforcing that pediatric surgeries can be delivered safely and effectively in outpatient settings,” Regent’s announcement emphasized.
As the JV grows between Regent and Patches, the pair will work to offer a range of pediatric surgeries, including general surgery, orthopedic procedures, gastroenterology, ENT surgeries and more.
The Regent-Patches JV news is the second noteworthy update in the pediatric outpatient surgery space to happen within the last few weeks.
In August, private equity firm Great Hill Partners acquired a majority stake in Blue Cloud Pediatric Surgery Centers, which bills itself as the nation’s largest operator of pediatric ASCs. Blue Cloud runs 32 facilities in 12 states, performing dental and oral surgeries for more than 60,000 pediatric patients annually.
“Blue Cloud addresses a critical gap in the U.S. health care system: affordable, high-quality dental and oral surgery for vulnerable populations,” Craig Byrnes, managing director at Great Hill, said when the deal was first announced.
