United Surgical Partners International executives revealed the company is behind on its year-long growth plan in an Oct. 20 third quarter earnings call from Tenet Healthcare, USPI's parent company.
USPI’s surgical case volumes were 100 percent of 2019 levels and flat compared to the same quarter last year, not reaching executive's high expectations for the company's growth.
Here are four more earnings call notes, according to a transcription by Seeking Alpha:
1. Tenet CEO Saum Sutaria, MD, cited Hurricane Ian center closures, a spike in case cancellations, supply chain obstacles and staff shortages as the reason behind slower third quarter growth.
2. Buy-out consolidation of SurgCenter Development's ASCs following the acquisition of the company in 2021 has also slowed, Dr. Sutaria said.
"We will not force these unnaturally as the relationship with these physicians is foundational to our ongoing success," Dr. Sutaria said.
3. Despite the slower-than-expected growth, USPI's mergers and acquisitions pipeline is strong, Dr. Sutaria said. The company still expects to deploy $250 million in acquisitions this year.
4. USPI added 32 new centers across 10 states with development underway for 15 additional centers in the third quarter.
"Our track record in this business is very strong and very long and our conviction behind the strategy is unchanged by a year of short-term challenges," he said.