USPI Q2 revenue drops 29.8%, resumes 94% of case volume in July: 8 details

United Surgical Partners reported 29.8 percent drop in second quarter revenue amid the pandemic, but the average monthly cases are resuming.

Eight things to know:

1. Net operating revenue dropped from $524 million in the second quarter of 2019 to $368 million in the second quarter of 2020, a nearly 30 percent decline due to the pandemic.

2. Same-facility net patient services revenues hit $808 million, a 28 percent drop for the second quarter of 2020. Same-facility surgical cases were down 41.6 percent in the quarter and same-facility systemwide total ambulatory cases dropped 33.7 percent.

3. The monthly impact of COVID-19 on surgical cases when previous years were compared with 2020 include:

• April: 20 percent of average cases
• May: 70 percent of average cases
• June: 90 percent of average cases
• July: 94 percent of average cases

4. Same-facility revenues for the surgical facilities were down 28.2 percent in the second quarter and case volume dropped 41.6 percent. However, revenue per case was up nearly 23 percent, showing a shift in higher acuity cases during the quarter while lower acuity cases were deferred. The increase also reflects a higher negotiated rate for services provided.

5. USPI reported adjusted EBITDA of $167 million in the second quarter, a 19.3 percent drop from the same period last year.

6. The net operating revenue for the first half of the year was $858 million, down 14.5 percent from $1 billion in the same period last year. Same facility year-to-date revenue was down 15.4 percent and case volume dropped 19.3 percent.

7. UPSI had interest in 264 ASCs, 24 surgical hospitals and 39 urgent care centers at the end of the quarter.

8. During the second quarter, Tenet's ambulatory segment reported grant income of $49 million, including $12 million in equity earnings.

More articles on surgery centers:
14 ASCs opened or announced in July
Five COVID-19 updates for ASC leaders
Compass Surgical Partners hires executive administrator

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