10 things to know about Tenet/USPI

Dallas-based Tenet Health and Addison, Texas-based United Surgical Partners International merged in 2015 to become the largest ASC chain in the United States, currently touting a portfolio of 470 centers in the third quarter of 2016.

Here are 10 things to know:

1. Tenet purchased 50.1 percent of USPI in 2015 for $425 million, while expressing its intentions to eventually own the entire company by 2020. Welsh Carson, Anderson & Stowe, a private equity firm based in New York City, along with USPI's other investors own the remaining shares of the company.

2. USPI/Tenet jointly own 470 ASCs across the United States. USPI contributes a majority share of profits to Tenet through the ownership agreement.

3. Trevor Fetter became Tenet's president in November 2002 and CEO in September 2003. Tenet's board of directors appointed him the company's chairman in May 2015. Mr. Fetter earned a master's degree from Cambridge, Mass.-based Harvard University.

4. William Wilcox joined USPI as its president and director in September 1998 and was appointed CEO in April 2004. He continues to lead the company and serves on the board. He is a board member of London-based European Surgical Partners, which owns and operates Aspen Healthcare in the United Kingdom.

5. Tenet/USPI also owns and operates 79 hospitals and 20 short-stay surgical hospitals in addition to its 470 ASCs. Tenet/USPI employs nearly 130,000 individuals.

6. During the fourth quarter of fiscal year 2016, Tenet/USPI's ambulatory services division reported:

A net operating revenue of $478 million.
An adjusted EBITDA of $183 million.
Ambulatory revenue jumped 5.9 percent on a same-facility, system-wide basis.

7. The Federation of American Hospitals honored Tenet's Vice Chairman Keith Pitts with its Mike Bromberg Lifetime Achievement Award, and Tenet's Eastern-Regional Coastal Division CEO Marsha Powers with its Corris Boyd Leadership Award in March 2017.

8. Tenet Healthcare signed a deal with Blue Cross Blue Shield of Texas in March 2017. The deal gives BCBS beneficiaries access to Tenet-owned facilities.

Tenet signed a similar deal with St. Louis-based Centene and Hopkins, Minn.-based UnitedHealth Group in December 2016. The deal gave beneficiaries in 18 states access to Tenet facilities. Tenet's contract with UnitedHealth Group gives Medicare Advantage beneficiaries access as well.

9. USPI created its EDGE program, Every Day Giving Excellence, to share best practices and continuously make clinical and safety improvements at its facilities. The program allows USPI's facilities management team to track metrics and identify areas in need of improvement.

10. CMS selected Tenet's Michigan Pioneer Accountable Care Organization to participate as one of the 2017 CMS’ Next Generation Accountable Care Organization Model. Tenet's Detroit Medical Center is affiliated with the ACO.

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