ASC giant United Surgical Partners International, owned by Tenet Healthcare, quietly purchased Covenant Physician Partners in the first quarter of 2024, ION Analytics reported in April.
According to the report, the sale occurred after Covenant's private equity owner, KKR, paid off lenders at par to avoid a potential distressed debt exchange. Covenant was facing financial pressure from increased labor costs and high interest rates
Nashville, Tenn.-based ASC chain Covenant Physician Partners was acquired by KKR in 2017 and operates more than 80 locations across 17 states. In June 2023, Covenant Physician Partners expanded its ASC portfolio with the merger of its St. Vincent Eye Surgery Center and Wilshire Center for Ambulatory Surgery, both in Los Angeles.
With 7.1% of the ASC market share, USPI is the largest ASC chain by number of physicians and centers and has seen massive growth in the last few years. The company acquired 45 new centers in the first quarter and eight in the second.
Becker's has reached out to USPI, Covenant Physician Partners and KKR and will update this story as more information becomes available.
As of publication, Covenant Physician Partners' website is unavailable