Tenet grows surgery center footprint with $1.1 billion SurgCenter buy

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Tenet Healthcare and its subsidiary United Surgical Partners International have closed the acquisition of ambulatory surgery center developer SurgCenter Development for $1.1 billion, the company announced Wednesday.

Dallas-based Tenet will acquire ownership in 86 ambulatory surgery centers and other related support services, growing its footprint well over the existing 60 hospitals and 550 healthcare facilities, the majority of those being surgery centers.

In the original plans announced in November, Tenet said it would acquire 92 centers. In the current deal, USPI is offering to buy interests from physician owners of up to $250 million, and United Surgical Partners International will develop at least 50 surgery centers with SCD over the next five years. Tenet said in a release that, assuming the successful completion of the acquisition of physician interests, it will consolidate the results from the centers in financial statements where the system has a majority ownership.

Tenet has emphasized that ambulatory surgical centers are a top growth strategy. The company in Oct. announced plans to buy ownership and management interest in nine ambulatory surgery centers from Compass Surgical Partners, a deal that included partnerships with 125 independent surgeons, the majority of which specialize in musculoskeletal procedures. It also in Dec. 2020 spent $1.1 billion for 49 of SCD’s facilities.

Tenet posted $450 million in net income to shareholders in the third quarter of 2021, compared to a net loss of almost $200 million in the prior-year period. In Tenet’s USPI division, same-facility surgery cases grew 6.8% year-over-year, which were at 101% of 2019 levels.

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