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TRANSACTIONS
15 details on USPI's $1.2B acquisition of SurgCenter
By Alan Condon
D
allas-based United Surgical Part-
ners International, a subsidiary of
Tenet Healthcare, acquired Towson,
Md.-based SurgCenter Development for $1.2
billion in December.
Fieen details on the transaction and USPI's
long-term strategy:
ASC acquisitions
1. e acquisition includes ownership interest
in 86 ASCs in states that include Arizona,
Florida and Texas.
2. Sixty-five of the ASCs are "mature centers"
and 27 have either opened within the last
year or will perform their first cases in 2022,
Tenet said in a news release.
3. Eighty percent of the surgery centers spe-
cialize in musculoskeletal care, such as spine
and total joint procedures — key opportuni-
ties for outpatient growth.
4. SurgCenter owns a minority interest of
about 39 percent on average in 86 of the
ASCs and a majority interest of about 55
percent on average in six of the ASCs.
5. USPI plans to acquire equity interests
in the ASCs from physician owners for
about $250 million.
6. Since 2009. and prior to this transaction,
USPI acquired 67 ASCs from SurgCenter,
which developed more than 200 centers in its
28-year history.
7. USPI now has more than 440 surgical
facilities in 35 states, further pulling ahead of
its competitors and cementing its position as
the largest ASC chain in the U.S.
A new ASC
development partnership
8. USPI and SurgCenter also entered into a
five-year development agreement to provide
continuity for SurgCenter's facilities and phy-
sician partners. roughout the agreement,
USPI will have the exclusive option to partner
with SurgCenter on de novo projects.
9. Over the next five years, USPI and Surg-
Center will develop a minimum of 50 ASCs,
according to terms of the transaction. e
new facilities generally will be led by Surg-
Center executives.
10. With each ASC, USPI will have the
exclusive option to obtain an immediate
ownership position at the time of develop-
ment with an additional option to purchase
SurgCenter's ownership stake 18 months aer
a facility's opening.
11. USPI said it will continue to pursue other
ASC acquisitions and de novo develop-
ments in partnership with physicians and
health systems.
Financial profile
12. Tenet said the acquisitions will further
diversify its mix of adjusted EBITDA with a
larger portion being produced by its higher-
margin outpatient portfolio.
13. e transaction is expected to generate
strong financial returns, including improved
adjusted EBITDA margins and free cash flow.
14. Tenet said it expects to realize at least $45
million of annual run-rate synergies over the
next three to four years from the deal.
15. "is transaction came together be-
cause of our shared commitment to quality,
safety and delivering an industry-leading
experience for our patients and physicians
alike," said Brett Brodnax, USPI president
and CEO. "We are excited to continue our
long-standing relationship in partnership
with the [SurgCenter] principals, who have
an extremely effective development engine to
expand our network of care." n
Retina Consultants of
America acquires 19th
practice in 2 years
By Ariana Portalatin
R
etina Consultants of America has added Mississippi
Retina Associates to its network, the Southlake, Texas-
based management services organization said Dec. 13.
Mississippi Retina Associates has 10 clinical locations provid-
ing care for patients from Mississippi, Louisiana, Alabama
and Tennessee.
The acquisition is Retina Consultants of America's 19th since it
was founded in January 2020. In addition to practices in Mis-
sissippi, the organization has practices in California, Colorado,
Florida, Kansas, Kentucky, Minnesota, Missouri, New York,
North Carolina, South Carolina, South Dakota, Tennessee,
Texas, Utah and Washington. n
Florida surgery
center property
sells for $19.7M
By Marcus Robertson
T
he buildings housing Plaza Surgery Center and
a medical office in Jacksonville, Fla., sold for
$19.7 million to Catalyst Healthcare Real Estate
of Pensacola (Fla.).
The two-story, 18,400-square-foot ASC building was
constructed in 1969 and renovated in 2007, accord-
ing to a Dec. 10 Jacksonville Daily Record report. It
was bought in 2018 for nearly $21.2 million by 6138
Jacksonville Properties.
The ASC is accredited by the Accreditation Associa-
tion for Ambulatory Health Care and is affiliated with
Memorial Hospital in Jacksonville. n
