Tenet, USPI to combine ASC, imaging center businesses: 5 things to know

The consolidation trend in the ambulatory surgery center market continues. Tenet Healthcare and Welsh, Carson, Anderson & Stowe have signed an agreement for Tenet and United Surgical Partners International to form a joint venture. Here are five things to know about the new agreement.

1. The joint venture will combine the two company's ambulatory surgery and imaging centers. Tenet will initially own 50.1 percent of the venture, while Welsh, Carson, Anderson & Stowe, along with USPI's other investors, will own the remaining 49.9 percent. Tenet will pay $425 million in cash to USPI's investors.

2. Tenet is on the path to full ownership of the joint venture over the next five years through a put/call structure.

3. The combined companies will own interests in 244 ASCs, 20 imaging centers and 16 surgical hospitals in 29 states. The joint venture will have partnerships with 50 health systems and more than 4,000 physicians.

4. Bill Wilcox and Brett Brodnax will remain the helm of USPI, as CEO and CDO respectively. Mr. Brodnax will also continue to serve as president. Kyle Burnett, Tenet's senior vice president of outpatient services, will join the USPI leadership team as president of ambulatory services and chief integration officer.

5. In addition to partnering with USPI, Tenet has agreed to acquire Aspen Healthcare from Welsh Carson, Anderson & Stowe for approximately $215 million in cash. Aspen Healthcare operates nine private hospitals and clinics in the United Kingdom. Aspen Healthcare will not be included in the joint venture.

More articles on transactions and valuation issues:
Hospitals in the ASC market: Sorting out the rivals from the potential partners
Ambulatory surgery center transactions – Current trends and concepts for 2015
Shrewsbury supports new UMass, Shield ASC – 6 things

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