For the second quarter of 2018, United Surgical Partners International reported strong net operating revenues at $531 million, a 12.5 percent increase from the same period last year.
The company's same-facility revenue also increased 6.9 percent and case volume was up 4.3 percent. USPI's revenue per case jumped 2.4 percent and surgical revenue was up 6.6 percent. USPI, along with Conifer, helped drive Tenet's second quarter performance.
"[USPI] performed very well and have posted a strong quarter," Ronald Rittenmeyer, Dallas-based Tenet Healthcare's executive chairman and CEO, said during the second quarter conference call, as transcribed by Seeking Alpha. "Volume growth was strong across all areas of business."
The company will likely continue making acquisitions through the second half of the year, according to the call.
"We completed some great acquisitions [in 2018]," said Mr. Rittenmeyer. "Year-to-date, USPI has deployed $120 million on acquisitions. And importantly, our pipeline for both acquisitions and de novo development remains very strong, and we think it's likely we will exceed the $100 million to $150 million target for acquisitions and de novos this year. And frankly, we're happy to do it given the great returns in this business."
Last year, USPI reported a strong fourth quarter in part because more patients decide to undergo elective surgery in ASCs after they've met their deductibles. Ana Gupte of Leerink Partners asked whether the company expected a similar boost since deductibles are rising.
"We obviously saw a very strong fourth quarter last year," said Jason Cagle, CFO of USPI, also on the call. "As far as the general trends in our business and the seasonality you've seen related to those deductibles, we don't see any trend changing that."