Tenet Healthcare and United Surgical Partners International have formed a joint venture ambulatory surgery center business, now the largest in the industry. This transaction is the first of likely many creative joint venture arrangements. Here are four key implications of this transaction, according to a Cain Brothers' Comments report.
• The movement toward value-based care is sparking consolidation in healthcare. To master these changes, healthcare providers are joining together to offer quality care in appropriate settings at the lowest possible cost. Combined, USPI and Tenet are positioned to offer value-based solutions, according to the report.
• Traditionally, consolidation has focused on expansion in an existing market. But, USPI and Tenet's partnership is expanding outside of the company's existing footprints.
• In addition to expanding into new markets, the Tenet-USPI joint venture is deepening its roots in existing markets. The joint venture enhances the company's clinical integrated network abilities.
• The combined company has demonstrated a strong ability to consolidate and will likely continue to grow through acquisitions.