Tenet Healthcare pays $1.2 billion to accumulate SurgCenter Growth in a deal that may add 92 ambulatory surgical facilities to the for-profit well being system, the corporate introduced Monday.
The transaction features a five-year partnership and growth settlement between Dallas-based Tenet’s ambulatory surgical procedure subsidiary, United Surgical Companions Worldwide, and SurgCenter Growth’s principals to supply continuity and help for the services and their doctor companions. After the deal closes, Tenet will personal not less than a part of greater than 440 ambulatory surgical facilities in 35 states.
The 92 SurgCenter Growth facilities through which Tenet is buying a stake are situated in 21 states, together with the profitable Arizona, Florida and Texas markets. The portfolio contains 65 mature facilities and 27 which have both opened throughout the previous yr or will carry out their first procedures in 2022. Their case combine is about 80% musculoskeletal care, together with hip and knee replacements and spinal procedures.
“The steadiness of operational and to-be operational services inside [SurgCenter Development] now land inside [United Surgical Partners International]. They’re all coming over,” Tenet CEO Dr. Saum Sutaria mentioned on a name with analysts Monday.
SurgCenter Growth had the biggest ambulatory care heart portfolio accessible to accumulate and increase Tenet’s footprint on this market, Sutaria mentioned.
Tenet’s United Surgical Companions Worldwide plans to open not less than 50 new services over the following 5 years as a part of the take care of SurgCare Growth and the homeowners who retain stakes in present services.
Tenet and SurgCare Growth have a historical past, Sutaria mentioned. Previous to the brand new deal, Tenet had acquired 67 of the opposite firm’s ambulatory surgical facilities since 2009. The well being system spent $1.1 billion to accumulate nearly 50 of SurgCenter’s services final yr.
SurgCenter Growth owns a roughly 39% common minority curiosity in 86 of them and a majority curiosity of about 55% on common in six.
Tenet has not acquired the opposite homeowners’ shares of the facilities. Within the coming months, the corporate will attempt to purchase parts of doctor homeowners’ fairness pursuits for incremental consideration of as much as about $250 million.
Tenet plans to finance the transaction by means of first-lien secured notes. The corporate expects to shut the deal within the fourth quarter, topic to customary approvals and shutting circumstances.