by Dave Muoio | January 12, 2022
Tenet Healthcare leadership took a victory lap for investors today at the J.P. Morgan Healthcare Conference, breaking down the progress of their multiyear restructuring and underscoring the growth potential of United Surgical Partners International (USPI), the hospital chain’s ambulatory surgery subsidiary.
For the former, CEO Saum Sutaria, M.D., said the company has divested from five hospital markets since 2017 for roughly $1.75 billion of proceeds (annual revenues of about $2.5 billion) and increased its investments in high acuity services.
Still, the company is on track to increase its adjusted net revenue for 2021 by 3% compared to 2017 and has increased same-hospital adjusted EBITDA by more than 25% as of the third fiscal quarter of 2021.
Sutaria also said Tenet is on track to open more high acuity centers in favorable markets across the country and highlighted a trio of projects in Fort Mill, South Carolina; Westover, Texas; and Buckeye, Arizona.
Meanwhile, USPI—Tenet’s “gem for the future”—hit 438 centers by the end of 2021 and is now well ahead of competitors Amsurg and Surgical Care Affiliates in terms of locations, Sutaria said. It’s also set to add or open more than 150 more locations thanks in large part to last year’s acquisition and development deal with SurgCenter Development.
