USPI adds 45 ASCs in Q1, revenue nearly hits $1B

Dallas-based United Surgical Partners International, Tenet Healthcare's ASC business, reported first quarter revenue increased 9.9% to $995 million, driven by strong revenue per case, acquisitions and opening new de novo facilities.

The company acquired 45 new centers in the first quarter and added 32 service lines year to date.

USPI has 512 ASCs and 25 surgical hospitals spanning 38 states in its portfolio. Same-facility net patient services revenue increased 6.4% to $1.8 billion even while same-facility surgical cases dropped 0.4% over the same period last year. Adjusted EBITDA jumped from $340 million in the first quarter of 2023 to $394 million in the most recent quarter.

USPI attributed the first quarter net patient service revenue increase to higher acuity cases in the surgery center. Same-facility total joint replacements in ASCs grew 21.2%. And USPI isn't done growing for the year. The company plans to spend around $250 million on mergers and acquisitions as well as de novo ASC investments this year.

Tenet's hospital business also reported 6.2% revenue increase for the first quarter of 2024 due to favorable payer mix, increased admission and improved pricing yield. In the last quarter, Tenet sold nine hospitals in South Carolina and California.

The company expects to report around $5 billion in the second quarter and $20 billion to $20.4 billion in full year revenues. USPI projected 13% normalized consolidated adjusted EBITDA growth at the midpoint of its full year outlook range, potentially hitting $3.5 billion to $3.7 billion for the year.

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