Tenet Healthcare purchased the final 15 percent ownership interest in United Surgical Partners International from Welsh, Carson, Anderson & Stowe, upping its ownership to 95 percent.
Here are five things to know.
1. Tenet opted to purchase the remaining 15 percent ownership of USPI faster than the company originally planned; previously, the company planned to complete the final 15 percent acquisition in July 2019.
2. Tenet paid WCAS $630 million to purchase the remaining 15 percent ownership interest. WCAS has had a relationship with USPI for around 20 years and praised the company for its consistent execution. "We have enjoyed working with both USPI and Tenet on the growth and evolution of such a strong business, and we believe the company is well positioned to deliver continued success," said WCAS Managing Partner D. Scott Mackesy.
3. After making the final investment, which is effective today, Tenet has satisfied its remaining obligations to WCAS under the 2015 put/call agreements between the parties.
"We are pleased to have reached this agreement with WCAS, who has been a terrific partner," said Ron Rittenmeyer, executive chairman and CEO of Tenet Healthcare. "USPI is a great business led by an exceptional team. Accelerating our buy-up of the company is consistent with our efforts to move quickly to prioritize opportunities that will propel our future growth and deliver value to shareholders."
4. In 2017, USPI was a bright spot for Tenet; while the company overall reported $230 million in net losses, net income for USPI hit $426 million for the year. Same-facility net revenue increased 4.6 percent, with case volume increasing 0.6 percent and revenue per case jumping 3.9 percent.
5. As of December 2017, USPI had 261 ASCs.
"We want to thank WCAS for their partnership and support of USPI, as well as their strategic counsel and guidance since the inception of our company," said Bill Wilcox, vice chairman of Tenet Healthcare and chairman and CEO of USPI. "We are excited about the many opportunities ahead for USPI and the broader Tenet enterprise."