13
ASC
MANAGEMENT
Tenet/USPI
ambulatory
revenue up 5.3%
in Q2 — 6 things
to know
By Angie Stewart
T
enet's ambulatory care segment rev-
enue increased 5.3 percent year over
year in the second quarter of 2019, the
Dallas-based company reported Aug. 5.
Six things to know:
1. Tenet's ASC business, which includes
Addison,Texas-based United Surgical
Partners International, reported continued
volume and earnings growth in the quarter.
Ambulatory cases were up 3.2 percent from
the second quarter of 2018 on a same-
facility, systemwide basis. Revenue per case
increased 2 percent.
2. Tenet's ambulatory care segment had
invested in 344 consolidated and unconsoli-
dated facilities as of June 30, 2019.
3. e segment produced net operating rev-
enues of $524 million in the second quarter
of 2019. Tenet attributed the 1.3 percent
year-over-year decrease to its divestiture of
Aspen Healthcare in the third quarter of
2018. e U.K.-based business had generated
$47 million of revenue in the quarter before
it was divested.
4. Aer accounting for the divestiture, the
ambulatory segment's adjusted EBITDA was
$207 million in the second quarter of 2019,
representing an 8.4 percent increase from the
second quarter of 2018. Adjusted EBITDA,
not including facility-level noncontrolling
interest, rose 9.1 percent year over year to
$132 million.
5. Tenet's surgical business, which represents
most of the ambulatory segment's revenue,
reported 5.2 percent revenue growth in the
second quarter of 2019. Surgical cases were up
2.6 percent and revenue per surgical case was
up 2.5 percent from the same period in 2018.
6. Tenet invested $153 million in net cash in
financing activities in the first half of 2019,
down from $894 million in the first half of
2018, when it invested $630 million in cash
to increase its ownership in USPI from 80
percent to 95 percent.
n
Surgical company seeks $15M investments
for 10 closed surgery centers
By Angie Stewart
W
orldwide Surgical Solutions,
a company that designs and
builds surgical facilities, is
seeking investors for 10 surgery cen-
ters in Texas that have closed down,
according to CEO James Hamilton.
WSS wants to purchase the centers
and implement its model in each.
Each investment would be $15 million,
with an estimated 30 percent return
on investment each year for a decade.
Led by founder and CEO James
Hamilton, a 40-year veteran in the
medical and surgical industries, WSS
develops ASCs, recovery care centers
and diagnostic centers with a focus
on seizing growth opportunities. Ear-
lier this year, the company received
a commitment letter to finance 60
surgical complexes in Texas.
n
