USPI to Acquire Interests in Nine Ambulatory Surgery Centers from Compass Surgical Partners

Rhea-AI Summary

United Surgical Partners International (USPI), a subsidiary of Tenet Healthcare Corporation (NYSE: THC), has signed a definitive agreement to acquire Compass Surgical Partners' interests in nine ambulatory surgery centers (ASCs) across Florida, North Carolina, and Texas. USPI will manage and jointly own these centers alongside approximately 125 physicians. The transaction, expected to close in Q4 2021, aligns with USPI's strategy of enhancing its portfolio of established and developing facilities, primarily focused on musculoskeletal procedures.

Positive

• Acquisition of nine ASCs diversifies and strengthens USPI's portfolio.
• Partnership with 125 physicians enhances operational capabilities.
• Focus on musculoskeletal procedures aligns with market demand.

Negative

• Financial terms of the acquisition were not disclosed, creating uncertainty.
• Integration challenges may arise due to the diverse locations.

DALLAS--(BUSINESS WIRE)-- United Surgical Partners International (USPI), a subsidiary of Tenet Healthcare Corporation (NYSE: THC), today announced that it has entered into a definitive agreement with Compass Surgical Partners (Compass) to purchase its ownership and management interests in nine ambulatory surgery centers (ASCs).

Upon completion of the transaction, USPI will manage and jointly own the centers through partnerships with approximately 125 physicians, as well as with local health systems, where applicable.

The portfolio includes well-established and new ASCs located in Florida (Tampa), North Carolina (Asheville, Raleigh and Winston-Salem) and Texas (Waco). Roughly 60 percent of the case mix comes from musculoskeletal procedures, with the remainder attributed primarily to ENT and ophthalmology.

The addition of this portfolio complements USPI’s strategy of acquiring, integrating and successfully growing well-established facilities that can experience the advantages of the platform, as well as those in development stages which can benefit from the Company’s proven ability to accelerate the ramp up of new centers.

Under the terms of the transaction, USPI will acquire Compass’ minority ownership interests (approximately 20% ownership interest in the nine centers) and management responsibilities of the centers. Financial terms of the agreement were not disclosed.

The transaction is expected to close in the fourth quarter of 2021, subject to customary closing conditions.

About USPI

United Surgical Partners International (USPI), a subsidiary of Tenet Healthcare Corporation (NYSE: THC), operates the largest ambulatory platform in the country. With more than 330 facilities across the United States, the company serves patients in ambulatory surgery centers and surgical hospitals. For more information, please visit www.uspi.com.

About Compass Surgical Partners

In partnership with exceptional surgeons and health systems, Compass Surgical Partners develops and manages surgery centers, with a specific focus on joint replacement and spine surgery. For more information on Compass, please visit www.compass-sp.com or contact us at query@compass-sp.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211011005170/en/

Media Contact:

Lesley Bogdanow

469-893-2640

communications@uspi.com

 

Source: United Surgical Partners International

FAQ

What is the purpose of Tenet Healthcare's acquisition of Compass Surgical Partners?

The acquisition aims to enhance USPI's portfolio by adding nine ambulatory surgery centers, thereby expanding its operational capacity.

When is the expected closing date for the acquisition by Tenet Healthcare (THC)?

The transaction is expected to close in the fourth quarter of 2021, pending customary closing conditions.

Where are the new ambulatory surgery centers located after the acquisition?

The new ASCs are located in Florida, North Carolina, and Texas.

What percentage ownership interest will USPI have in the acquired centers?

USPI will acquire a approximately 20% ownership interest in the nine ambulatory surgery centers.

How will this acquisition impact Tenet Healthcare's business strategy?

This acquisition complements USPI's strategy of acquiring and growing established facilities and supports its focus on musculoskeletal and surgical services.