Dallas-based Tenet Healthcare will acquire SurgCenter Development and its more than 90 ASCs for approximately $1.2 billion, the company said Nov. 8.
Tenet's United Surgical Partners International subsidiary will operate the ASCs, located in 21 states. The transaction is expected to close in the fourth quarter of 2021.
The acquisition includes ownership interest in 92 ASCs as well as the formation of a five-year development agreement to provide continuity for SurgCenter Development's facilities and physician partners.
The agreement allows USPI to partner with SurgCenter Development on de novo projects throughout the course of the agreement, the news release said.
USPI also plans to acquire equity interests in the ASCs from physician owners for approximately $250 million, according to the release.
"This transaction came together because of our shared commitment to quality, safety and delivering an industry-leading experience for our patients and physicians alike," Brett Brodnax, president and CEO of USPI, said in the release. "We are excited to continue our longstanding relationship in partnership with the [SurgCenter Development] principals, who have an extremely effective development engine to expand our network of care."
USPI and SurgCenter Development have a history. The transaction follows USPI's acquisition of 67 SurgCenter Development centers since 2009, including 45 ASCs in February.
Earlier this year, Tenet sold five Florida hospitals to Dallas-based Steward Health Care for $1.1 billion. ASCs were not included in the transaction, pointing to Tenet's strategy of strengthening its surgery center footprint.
USPI reported net operating revenue of $666 million for the quarter, up 17.8 percent from $565 million in the same period last year. The company attributes the increase to higher volumes, higher patient acuity and new service line growth.
These recent deals further cement USPI as the largest ASC management company in the country, further pulling away from Nashville, Tenn.-based AmSurg and Deerfield, Ill.-based Surgical Care Affiliates, its closest two competitors.