USPI to inject $250M into ASC acquisitions

 Dallas-based Tenet Healthcare, parent company of ASC chain United Surgical Partners International, will pump $250 million into ASC mergers and acquisitions, the company said Feb. 9 during its fourth-quarter earnings call transcribed by Seeking Alpha.

"USPI's M&A engine under the Tenet umbrella continues to be an industry-leading differentiator," CEO Saum Sutaria, MD, said on the call. "In 2022, we added 45 centers to the portfolio through M&A and de novo development, in addition to the [SurgCenter Development] centers."

 The company is also continuing to build surgery centers through its USPI development team and from its partnership with Towson, Md.-based SurgCenter Development. And in June, USPI and United Urology Group formed a partnership for 22 ASCs. According to the earnings call, USPI has 22 ASCs in active syndication or under construction.  

The company is also focusing on USPI's value-based offerings. 

"Our services are generally 30 percent to 50 percent more affordable than similar services delivered in a hospital setting," Dr. Sutaria said. "The linkage to our hospital business creates an unquestionably superior platform from which to draw talent, operating expertise and scale benefits."

Last year, USPI reported $1.3 billion in EBITDA, with strong margins at 40.9 percent, according to the company's financial report. USPI's same-facility revenues grew 4.6 percent in 2022, which is in the range of the company's long-term, top-line growth goal of between 4 percent and 6 percent. 

 

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