Can a Doctor Perform a Panniculectomy but Also Tighten Muscles?

Generally speaking if the panniculectomy is being performed instead of a tummy tuck, it is for safety reasons.  Under these circumstances it is usually best to stay in the lower abdomen.

Pregnancy can result in dramatic changes in a woman’s
body. These changes are especially noticeable in the abdomen, where redundant
saggy skin, weakened muscles, and stretch marks may occur. A large variety of
surgical options are available for treating these problems. The procedure
chosen for any particular patient is dependent upon their anatomic findings and
aesthetic goals.

It’s important to realize that each patient’s situation
is unique. The best results are obtained when correct analysis is performed and
the best surgical option is applied. In most cases, patients will require a
full abdominoplasty.

In your case, it’s virtually impossible to make a
recommendation without pictures or a physical examination. It’s definitely
possible to remove lower abdominal skin and tighten abdominal muscles without
detaching the umbilicus. Whether or not this approach is appropriate for you is
dependent upon a proper evaluation.

Under these circumstances, consultation with a
board-certified plastic surgeon who has experience in this area is appropriate.
This surgeon should be able to formulate a treatment plan that addresses your
concerns. 

A panniculectomy will only remove the excess skin and fat that is forming the apron of skin, and won't do anything for anything above this.  A tummy tuck with panniculectomy is probably what would better achieve your goals.