Penn Medicine Radnor Surgery Center and Jefferson Health’s facility inside the Honickman Center in Philadelphia drove regional outpatient volume last year as healthcare providers leaned into cost-saving ambulatory models, according to recent Pennsylvania Department of Health data and health system disclosures.
Outpatient Surgery Center Growth in Philadelphia
Penn Medicine Radnor Surgery Center logged 12,464 surgical visits in 2025. That total marks a sharp increase from 8,961 visits the previous year, according to state health data published last month. Penn attributed the expansion directly to the addition of new gastroenterologists in Radnor who perform procedures like colonoscopies and upper endoscopies. Colonoscopies drive a large share of overall volume at surgery centers operating outside traditional hospitals.
Jefferson Surgery Center posted 12,261 surgical visits, jumping from 2,639 visits in 2024. The facility operates inside the Honickman Center, which opened in 2024 at 1101 Chestnut St. in Philadelphia. Jefferson has steadily broadened its surgical offerings at the site.
“Growth has been driven by both increasing patient demand and the strategic transition of services from other Jefferson locations, allowing us to provide care in a state-of-the-art outpatient environment,” Jefferson said in an email.
Other fast-growing sites include independent orthopedic facilities such as Premier at Exton Surgery Center in Exton and Restore Orthopaedic Surgical Institute in Chadds Ford.
Hospital Ownership and Outpatient Department Billing Rates
Even though outpatient facilities operated by Penn and Jefferson sit outside traditional hospital walls, their hospital ownership allows providers to bill at rates tied to major institutions like the Hospital of the University of Pennsylvania or Thomas Jefferson University Hospital. Hospital outpatient department billing rates are sometimes twice as high as rates charged by independent surgery centers.
For example, removing torn cartilage from a knee costs $7,190 when performed as an outpatient procedure in a hospital setting. That same procedure drops to $2,477 in independent ambulatory surgery centers, according to Philadelphia-area commercial insurance averages cited by Turquoise Health.
Did you know? Hospital outpatient billing rates can make procedures nearly three times more expensive than the exact same care delivered in an independent ambulatory surgery center, according to Turquoise Health insurance averages.
Insurer Mandates and the Jefferson Lawsuit Over ASC Policies
Insurers Independence Blue Cross (IBX) and Highmark implemented new policies this year to curb expenses for employers and patients by shifting care out of hospitals into ambulatory surgery centers. Both insurers announced they will only cover specific procedures if performed in an ASC.
Yet insurance executives note that lower costs depend entirely on facility structure. “The cost savings from an ASC depend on the facility’s ownership, licensing, and billing model,” Richard Snyder, IBX’s chief operating officer, said in an email to The Inquirer. Snyder added that IBX wants to expand ASC options in Southeastern Pennsylvania through investments, strategic partnerships, and value-based arrangements.
Those financial pushes have already sparked legal battles. Jefferson filed a lawsuit against IBX in July, claiming the insurer’s ASC mandate alters contractual financial terms without required negotiations. Jefferson’s lawsuit states the policy will cost the health system $35.4 million, though the filing does not specify the exact timeframe for that projected loss.
IBX filed a motion last week to dismiss the lawsuit after the case moved to U.S. District Court in Philadelphia from the Philadelphia Court of Common Pleas. The insurer argues that Jefferson filed prematurely before finishing the contractual dispute resolution process.
Frequently Asked Questions
What are the busiest surgery centers in the Philadelphia region?
Penn Medicine in Radnor and Jefferson Health in Center City operated the two busiest surgery centers in the region last year, according to state health data.
Why do surgeries cost more at Penn and Jefferson outpatient centers?
Because Penn and Jefferson own these facilities, they qualify for hospital outpatient department billing rates, which often run significantly higher than rates at independent ambulatory surgery centers.
Why is Independence Blue Cross in a legal dispute with Jefferson?
Jefferson sued IBX in July over a new policy requiring certain surgeries to be performed in ambulatory surgery centers, arguing the mandate disrupts contract terms and costs the health system $35.4 million. IBX filed to dismiss the lawsuit, calling it premature.
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