United Surgical Partners International has been an area of strong performance and growth for Tenet over the years, and in 2020 the company aims to continue building on its reputation to add more centers to its platform.
"USPI is tightly tied to our overall strategy allowing us to truly grow in key markets while providing that similar support to many of our nonprofit partners throughout the United States. We are committed to thoughtfully and actionably scaling this aspect of our business," said Tenet CEO Ron Rittenmeyer during a presentation at the 38th Annual J.P. Morgan Healthcare Conference.
As of Jan. 8, 2020, USPI has 296 ASCs. Tenet also reports 65 hospitals and 24 surgical hospitals, and partners with around 50 health systems. Tenet has around 110,000 employees.
"The concepts of real time and data move to the forefront of our conversations and it has helped us monitor and improve our efficiency and effectiveness," Mr. Rittenmeyer said. "Our focus on organic growth delivered a consistent and sustainable improvement both in our hospitals and USPI. We delivered measurable improvement in quality, safety and patient experience."
Through the end of the third quarter of 2019, Tenet reported its ambulatory surgical case growth was up 3.3 percent from 2017. Tenet and USPI make up 5 percent of the ASC market, where 60 percent of ASCs are still independent. Fourteen percent of ASCs are affiliated with other national players, 13 percent have hospital affiliations and 8 percent are partnered with small chains. The fragmentation in the ASC market is an opportunity for USPI.
In the coming year, the company expects to deploy $150 million to $175 million in acquisitions, if the right opportunities occur, and estimates purchasing centers at attractive multiples.
The company also expects to invest in de novo ASCs in existing and new markets and expand service offerings. USPI also expects to report a "strong trajectory" of same-facility case growth and expand orthopedics, spine, cardiovascular and robotics services.