Tenet Healthcare's ASC powerhouse United Surgical Partners International is a "top capital priority," CEO Saum Sutaria, MD, said July 23 during the company's second quarter earnings call transcribed by Seeking Alpha.
Tenet's top capital priority "remains the expansion of low-cost, high-quality ambulatory surgical centers for the communities around the country," Dr. Sutaria said during the call. Tenet will use its "disciplined approach" to improve patient care and physician performance in ASCs' "fragmented" marketplace, Dr. Sutaria added
USPI's second quarter revenue hit $1.14 billion, a 21.1% increase from the same quarter last year. Adjusted EBITDA jumped 20.8% from $370 million in the second quarter of 2023 to $447 million in the most recent quarter.
With 520 ASCs and 24 surgical hospitals spanning 38 states in its portfolio, USPI is the largest ASC chain in the country.
In a first quarter earnings call, Tenet said it is investing $450 million into its ambulatory business in 2024. Additionally, Tenet acquired 45 ASCs across the nation in the first quarter that focus on several specialties, including orthopedics, ophthalmology and GI.
"As we fully emerge from the pandemic, our repositioned portfolio of businesses is generating stronger results with attractive margins and strong free cash flow generation," Dr. Sutaria said in the second quarter call. "The mix of businesses can thrive in any variety of political and regulatory environments as the fundamental tailwinds in the ambulatory demand for USPI, the high acuity program needs for our hospitals in growing markets and the need for efficient, effective healthcare services…are strong in the marketplace."