Becker's Spine Review

41 OUTPATIENT SURGERY What's in store for USPI in 2020: Key insights from Tenet CEO Ron Rittenmeyer By Laura Dyrda U nited Surgical Partners International has been an area of strong performance and growth for Tenet over the years, and in 2020 the company aims to continue building on its reputation to add more centers to its platform. "USPI is tightly tied to our overall strategy allowing us to truly grow in key markets while providing that similar support to many of our nonprofit partners throughout the United States. We are committed to thoughtfully and actionably scaling this aspect of our business," said Tenet CEO Ron Rittenmeyer during a presentation at the 38th Annual J.P. Morgan Healthcare Conference. As of Jan. 8, 2020, USPI has 296 ASCs. Tenet also re- ports 65 hospitals and 24 surgical hospitals, and part- ners with around 50 health systems. Tenet has around 110,000 employees. "e concepts of real time and data move to the forefront of our conversations and it has helped us monitor and im- prove our efficiency and effectiveness," Mr. Rittenmeyer said. "Our focus on organic growth delivered a consistent and sustainable improvement both in our hospitals and USPI. We delivered measurable improvement in quality, safety and patient experience." rough the end of the third quarter of 2019, Tenet report- ed its ambulatory surgical case growth was up 3.3 percent from 2017. Tenet and USPI make up 5 percent of the ASC market, where 60 percent of ASCs are still independent. Fourteen percent of ASCs are affiliated with other national players, 13 percent have hospital affiliations and 8 percent are partnered with small chains. e fragmentation in the ASC market is an opportunity for USPI. In the coming year, the company expects to deploy $150 million to $175 million in acquisitions, if the right oppor- tunities occur, and estimates purchasing centers at attrac- tive multiples. e company also expects to invest in de novo ASCs in ex- isting and new markets and expand service offerings. USPI also expects to report a "strong trajectory" of same-facility case growth and expand orthopedics, spine, cardiovascular and robotics services. n Insurers, hospitals clash over service shift to ASCs By Rachel Popa A new policy that steers patients getting colonoscopies away from hospital outpatient departments and into ASCs is stirring up controversy in Minnesota, according to the Minneapolis Star-Tribune. Under the new policy, Blue Cross Blue Shield of Minnesota would only pay for colonoscopies and endoscopies at in-network ASCs, with the insurer only paying for the procedures in hospital outpa- tient departments if the patient lived further than 25 miles from a surgery center. Three things to know: 1. Officials at nonprofit hospitals say the new policies are indicat- ing such insurers as Blue Cross Blue Shield are not willing to pay hospitals for services at a rate that generates a margin. 2. But Blue Cross Blue Shield's chief medical officer, Mark Stef- fen, MD, told the Star-Tribune that increases in hospital prices for procedures aren't sustainable, and that the new policy is following a wider trend of paying for the value of care rath- er than using the fee-for-service models traditionally used at hospitals. Blue Cross Blue Shield said colonoscopies and en- doscopies cost more at hospital outpatient departments than at ASCs. 3. Matt Anderson, interim president of the Minnesota Hospital As- sociation, said the new Blue Cross Blue Shield policy conflicts with contract terms that allow patients to access procedures at hospital outpatient departments, even if they live close to an ASC. n Florida ASC files for bankruptcy: 3 details By Laura Dyrda Central Palm Beach Surgery Center in West Palm Beach, Fla., filed for bankruptcy on Jan. 28. Three key details: 1. The surgery center filed for chapter 11 bankruptcy in the South- ern District of Florida. 2. The surgery center estimated assets at $7.1 million and estimat- ed liabilities at $12.2 million. 3. The estimated value of the center's personal property and in- ventory is $252,385. n

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