Tenet Healthcare's ASC arm United Surgical Partners International has seen skyrocketing growth in the last five years, becoming the largest ASC chain in the U.S.by number of centers and physicians.
Tenet has added 56 ASCs so far in 2024, and has sold nine hospitals for proceeds of $4 billion to invest in the ambulatory space. In 2023, it added 31 ASCs for $149 million — nine of which were acquired and 11 were previously unconsolidated centers in which USPI inked controlling ownership interest.
The company also opened nine de novo ASCs in 2023 with more than 30 ASCs in development.
Tenet CEO Saum Sutaria, MD, broke down key features of the company's ASC algorithm in a July 23 second quarter earnings call transcribed by Seeking Alpha.
Here are five things to know:
1. The company's "algorithm" with ASC organic surgical growth volumes is 2% to 3% for 2024, Dr. Sutaria said, adding that the driver of expansion is USPI's strategy to take on single-specialty ASCs and make them multispecialty through scale and expertise.
2. USPI's strategy also includes getting ahead of the recruiting challenge and potential volume declines as centers mature, allowing them "to renew their … ability to build and grow," he added. Paired with favorable reimbursement and regulatory trends for ASCs, Dr. Sutaria said USPI feels "confident in the revenue growth range."
3. USPI is also focused on high-acuity procedures — with orthopedics being the "No. 1 growth vector in this segment" for the next five to 10 years. The company also inked a partnership with Tampa, Fla.-based Orthopedic Institute in the second quarter.
4. Dr. Sutaria added that they are in the early innings of focusing on urology as procedures migrate to the ASC setting. "There's a lot of room for … expansion of the range of services that can be offered in the [ASC] setting," Dr. Sutaria said.
5. Through mergers and acquisitions, USPI aims to integrate ASCs into Tenet's operating platform "as quickly as possible."