USPI's $1.2B SurgCenter deal: How one of the industry's biggest acquisitions is unfolding 

In November 2021, Dallas-based Tenet Healthcare, parent company of ASC chain United Surgical Partners International, said it would acquire SurgCenter Development and its more than 90 ASCs for approximately $1.2 billion. 

While the buy-out consolidation slowed in the third quarter, Tenet CEO Saum Sutaria, MD, said in an Oct. 20 third quarter earnings call that USPI's mergers and acquisitions pipeline is strong. 

The acquisition includes ownership interest in 92 ASCs and the formation of a five-year development agreement to provide continuity for SurgCenter Development's facilities and physician partners. 

"We have worked with the physicians in these centers, and there is further opportunity for some of the centers to mature before completing the buy-ups and we can deliver our added synergies," Dr. Sutaria said. "We will not force these unnaturally as the relationship with these physicians is foundational to our ongoing success."

Dr. Sutaria added that these centers are performing well and their earnings are "continuing to ramp up."

With the deal, USPI planned to acquire equity interests in the ASCs from physician owners for approximately $250 million. As of the end of the third quarter, the company is not yet at the originally anticipated equity ownership level, Dr. Sutaria said. 

"There's anticipated additional synergies related to the [SurgCenter Development] transactions and it will continue to grow as we move through next year as well," Dan Cancelmi, Tenet's CFO, added in the call.

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