The state of the ASC industry: 3 earnings call notes from HCA, USPI & SCA Health

United Surgical Partners International, SCA Health and HCA Healthcare are all indicating different growth strategies in the company's third quarter earnings calls. 

Here are three major earnings call notes to know that point to the state of the ASC industry:


United Surgical Partners International executives revealed the company is behind on its year-long growth plan in an Oct. 21 third quarter earnings call from Tenet Healthcare, USPI's parent company.

Despite this, the company is still optimistic about the revenue-generating power of USPI. 

"It's a great business, great margins, great cash flow generation. And we believe we have competitive advantages when we engage in [mergers & acquisitions] when there's a competitive process based on the value that we can bring to the table," Tenet's executive vice president and CFO Dan Cancelmi said in the call. "So, we do believe that the pipeline is robust, and so it gives us a lot of optimism as we think about 2023 and beyond."

HCA Healthcare:

Nashville, Tenn.-based HCA Healthcare's outpatient revenue jumped 36.6 percent in the third quarter, according to financial results released Oct. 21. 

In the last two years, the company has seen substantial migration of total joint procedures to the outpatient setting, according to an earnings call transcribed by The Motley Fool. 

"Anecdotally, we've heard from some of our physicians that their clinic practices are starting to recover [from COVID-19] in ways that maybe earlier in the year, they didn't recover. So that's encouraging to us at some level," CEO Samuel Hazen said. "Obviously, during the comparison of 2019 to today, our total joint business migrated fairly significantly to outpatient activity."

SCA Health:

Optum, parent company of ASC chain SCA Health, is doubling down on value-based care and higher-acuity surgical procedures. 

Optum's third-quarter revenue is up 17 percent from the same quarter last year, reaching $46.6 billion, according to financial results released Oct. 14 by parent company UnitedHealth Group. 

OptumHealth's 31 percent revenue-per-customer growth is attributed to the increasing number of patients served under value-based care, according to an Oct. 14 call with investors transcribed by The Motley Fool. OptumHealth is Optum's care delivery platform. 

"Growth continues to be led by the increasing number of patients served under value-based care relationships and the expanding types of care settings offered by Optum, from meeting behavioral needs to comprehensively serving people in their homes to higher acuity ambulatory surgery," CFO John Rex said in the call. 

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