December 22, 2021 – Tenet Healthcare Corporation (NYSE: THC) and its subsidiary United Surgical Partners International (USPI) today completed the previously announced transaction to acquire SurgCenter Development (SCD). As part of the closing of the transaction, Tenet / USPI acquired SCD’s interests in 86 outpatient surgery centers (ASCs) and other related outpatient support services for approximately $ 1.1 billion.
In addition, USPI proposes to acquire part of the stakes in the ASCs from owner physicians for an additional consideration of approximately $ 250 million. As previously announced, this is an ongoing process that should continue over the next few months. Assuming the successful acquisition of the interests of the physicians, Tenet will consolidate in its financial statements the results of the centers in which USPI has a controlling interest.
The Company continues to anticipate a gradual consolidation of various centers with an estimated fully progressive Adjusted EBITDA of approximately $ 275 million by the third to fourth year, in line with Tenet’s previous disclosures on the transaction.
As previously announced, USPI and SCD executives have entered into a Partnership and Development Agreement under which USPI will have the exclusive option to partner with SCD for the future development of a minimum target of at least 50 novo over a period of five years. .
Goldman Sachs & Co LLC acted as financial advisor to Tenet, and Willkie Farr & Gallagher LLP as legal advisor.
Caution
This press release includes “forward-looking statements”. These statements relate to future events, including, but not limited to, statements regarding our liquidity, results of operations, future earnings, financial condition, operational and strategic initiatives and developments in legislation, regulation and the health sector in general. These forward-looking statements represent management’s expectations, based on information currently available, as to the outcome and timing of future events, but, by their nature, address uncertain matters, particularly with respect to developments related to the COVID pandemic. Actual results, performance or achievements could differ materially from those expressed in any forward-looking statement.
Examples of uncertainties that may cause our actual results, performance or achievements to differ materially from those expressed or implied by forward-looking statements include, without limitation, developments related to COVID and the factors described in section “Forward-Looking Statements” and “Risk Factors” in our Form 10-K for the year ended December 31, 2020, subsequent Form 10-Q filings and other filings with the Securities and Exchange Commission.
We assume no obligation to update any forward-looking statements or information after the dates on which such statements are made. Investors are cautioned not to place undue reliance on our forward-looking statements.
About Tenet Healthcare
Tenet Healthcare Corporation (NYSE: THC) is a diverse health services company headquartered in Dallas. Through an extensive healthcare network that includes United Surgical Partners International, we operate 60 hospitals and either operate or have an interest in approximately 550 other healthcare facilities, including surgical hospitals, outpatient surgery centers, imaging centers and medical facilities. ” other healthcare sites and clinics. We also operate Conifer Health Solutions, which provides value-based care and revenue cycle management services to hospitals, healthcare systems, physician offices, employers and other clients. Across Tenet, we are united by our mission to provide quality, compassionate care in the communities we serve. For more information, please visit www.tenethealth.com.
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