Tenet Healthcare Corp.’s Joint Venture with United Surgical Partners International
In June 2015, Tenet Healthcare Corp. announced that it would be joining forces with United Surgical Partners International to create the largest ambulatory surgery center (ASC) platform in the United States. The deal combined the assets of Tenet and USPI, resulting in more than 250 ASCs, 18 short-stay surgical hospitals, and 20 imaging centers across 29 states.
With the changing model of healthcare delivery, this joint venture puts both Tenet and USPI in a position to capitalize on a consumer-centric approach. USPI was an attractive partner to Tenet in part because of its novel three-way partnership model, which created an unprecedented network of 50 not-for-profit partners and 3,500 physicians. Tenet achieved a 50.1 percent stake of the USPI joint venture through a combination of cash and contribution of its own assets, with the remainder of the company held by private equity firm Welsh, Carson, Anderson and Stowe and other existing investors. Tenet sees an “attractive path to full ownership” of USPI by 2020.
The venture also strengthens Tenet’s outpatient services network, which jumped from 63 facilities in 2008 to 127 facilities in 2013. With the addition of USPI, the network now includes 440 outpatient facilities.
This is hardly the only recent joint venture for Tenet, which has been focused on forming relationships with reputable not-for-profit health systems sharing its principles of high-quality, low-cost care. It has also recently announced partnerships with Baptist Health System in Birmingham, Ala.; Dignity Health and Ascension for the Carondelet Health Network in Tucson, Ariz.; and Baylor Scott & White Health in Dallas.
Children’s Health System of Texas’ acquisition of Our Children’s House