Nonprofit health systems are paying large sums for national ASC platforms. Dallas-based Tenet Healthcare says those deals haven’t cut into its own acquisition pipeline.
On Tenet’s Oct. 29 third-quarter earnings call, UBS analyst AJ Rice pointed to two recent deals in which nonprofit systems bought surgery center assets at premiums above the market’s valuation of Tenet’s United Surgical Partners International. He asked whether the deals were changing pricing or competition for smaller ASC acquisitions. While he didn’t name the deals, in late October, a Bon Secours Mercy Health affiliate, HealthSpan Partners, agreed to acquire Brentwood, Tenn.-based Surgery Partners for about $5.7 billion. Earlier, Ascension bought Amsurg for $3.9 billion.
Chairman and CEO Saumya Sutaria, MD, said USPI invested more than $100 million in development during the third quarter. He said “the vast majority” of those acquisitions “were not competitive processes” and came to USPI exclusively. USPI has also opened four de novo centers so far in 2026.
He outlined how USPI plans to stay ahead of competitors:
- Opening de novo centers faster, with more of them in higher-acuity service lines where USPI has built a reputation with physicians, physician groups and MSOs.
- Using its payer contracts to enter new markets and states without owning more acute care hospitals.
- Delivering earnings growth that Dr. Sutaria said outpaces every other ASC platform.
Tenet also answered the valuation gap with share buybacks. The company has repurchased 8 million shares for $1.615 billion so far this year, and growing USPI through M&A remains its top capital priority. Dr. Sutaria said repurchases are especially attractive given recent multiples for combined ASC and hospital platforms.
He also welcomed the new players.
“I personally extended my congratulations to both new owners,” Dr. Sutaria said. He said the ASC sector will need to work together to show regulators how ambulatory surgery helps lower healthcare costs.
At the Becker’s 32nd Annual Meeting: The Business and Operations of ASCs, taking place October 29-31 in Chicago, ASC leaders, surgeons and healthcare executives will explore strategies to drive growth, enhance operational performance, navigate reimbursement challenges and prepare for the future of ambulatory surgery. Apply for complimentary registration now.
