Tenet's ambulatory care segment revenue increased 5.3 percent year over year in the second quarter of 2019, the company reported on Aug. 5.
Six things to know:
1. Tenet's ASC business, which includes United Surgical Partners International, reported continued volume and earnings growth in the quarter. Ambulatory cases were up 3.2 percent from the second quarter of 2018 on a same-facility, systemwide basis. Revenue per case increased 2 percent.
2. Tenet's ambulatory care segment had invested in 344 consolidated and unconsolidated facilities as of June 30, 2019.
3. The segment produced net operating revenues of $524 million in the second quarter of 2019. Tenet attributed the 1.3 percent year-over-year decrease to its divestiture of Aspen Healthcare in the third quarter of 2018. The U.K. business had generated $47 million of revenue in the quarter before it was divested.
4. After accounting for the divestiture, the ambulatory segment's adjusted EBITDA was $207 million in the second quarter of 2019, representing an 8.4 percent increase from the second quarter of 2018. Adjusted EBITDA, not including facility-level noncontrolling interest, rose 9.1 percent year over year to $132 million.
5. Tenet's surgical business, which represents most of the ambulatory segment's revenue, reported 5.2 percent revenue growth in the second quarter of 2019. Surgical cases were up 2.6 percent and revenue per surgical case was up 2.5 percent from the same period in 2018.
6. Tenet invested $153 million in net cash in financing activities in the first half of 2019, down from $894 million in the first half of 2018, when it invested $630 million in cash to increase its ownership in USPI from 80 percent to 95 percent.
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