Dallas-based United Surgical Partners International, Tenet Healthcare's ASC arm, is emphasizing high-acuity procedures to fuel its expansion.
In the third quarter, USPI saw a 7.6% increase in net revenue per case, driven by high-acuity procedures and a favorable payer mix, Tenet Healthcare CEO Saum Sutaria, MD, said during an earnings call.
A key driver of this growth is USPI's intensified focus on orthopedics. The company's ASCs experienced a 19% increase in total joint replacements compared to the previous year, and USPI recently partnered with San Diego-based Synergy Orthopedics to develop the largest dedicated musculoskeletal ASC in San Diego.
"We continue to focus on growing higher acuity, which drives net revenue per case, it also drives value in the system from a overall lowering the cost of care standpoint, " Dr. Sutaria said.
As part of this shift, USPI is exploring opportunities to "migrate certain lower-acuity, higher-volume types of activities out of the ASCs," Dr. Sutaria added.
This strategic focus on high-acuity procedures aligns with an industry-wide trend of migrating services such as cardiology, orthopedics, and advanced spine procedures from hospital settings to ASCs.
"Acuity continuing to increase is a good fundamental marker of strength," Dr. Sutaria said in a second quarter earnings call. "I've said this before, my view on the orthopedics area is it is the number one growth vector in this segment for the next … five to 10 years. There's just so much more that can be done in expanding the market, but also hospital outpatient-based work that moves into a freestanding setting … That's how it's always been in the ambulatory surgery environment. First, you get migration, then you get market expansion with more qualified patients who choose to go into a simpler, cheaper, easier service setting. I think both of those things will provide a tailwind. So, I continue to believe that the orthopedics arena will dwarf all of the other service opportunities in this area over the next five years."