Becker's Hospital Review

22 POPULATION HEALTH 22 CEO / STRATEGY Why USPI is Tenet's 'gem for the future' By Alia Paavola D allas-based Tenet Healthcare's United Surgical Part- ners International is the company's "gem for the fu- ture," CEO Saum Sutaria, MD, said during the JPMor- gan Health Conference Jan. 11. By the end of 2021, USPI had grown to encompass 438 cen- ters, placing it well ahead of such competitors as Amsurg and Surgical Care Affiliates, which have about 250 surgery center locations apiece. is substantial growth in ASCs was driven in part by Tenet's $1.1 billion deal to acquire SurgCenter Development's own- ership interests in 86 ambulatory surgery centers and related services. Under the deal, finalized in December 2021, USPI and SurgCenter also entered into an agreement that gives USPI the option to partner with SurgCenter to develop at least 50 centers over five years. "While USPI was a part of Tenet back in 2017, the commit- ment we drove as part of the transformation was to scale it … into the undisputed leader in ambulatory surgery," Dr. Sutaria said. "is has been the centerpiece of our new strategy." Tenet said it expects USPI to encompass 575 to 600 surgical centers through acquisitions and new development by 2025. In 2022 alone, Tenet said it would invest at least $200 million in surgery center acquisitions. "We have a thoughtful strategy that balances acquisitions and de novo developments, and we have proven this works," Dr. Sutaria said. In addition to providing an update on USPI, Dr. Sutaria touched on the company's growth in its Conifer revenue cy- cle management segment. roughout the last few years, Tenet has worked to modern- ize Conifer with new technology, an offshoring strategy and a focus on hiring high-performing sales talent, Dr. Sutaria said. "e results so far is 1,000-basis point margin expansion, proving that Conifer is a truly a productive asset of the com- pany and far from the asset that some assumed should be di- vested in a fire sale in 2017," Dr. Sutaria said. Tenet said these changes have resulted in new revenue cycle management clients, including Renton, Wash.-based Provi- dence for midcycle services and Dallas-based Steward Health Care for end-to-end services. At the end of the third quarter of 2021, Conifer had about 3,000 employees offshore, an increase from about 1,000 work- ers in 2017, according to the presentation. n Viewpoint: The case for the charismatic CEO By Georgina Gonzalez B usiness leaders with charm and charisma are no longer highly prized, but they are still essential to driving pro- ductivity and creativity, columnist Adrian Wooldridge wrote in Bloomberg on Jan. 10. Big business personalities and famous CEOs distinguish them- selves from others by their magnetism and ability to distort re- ality, Mr. Wooldridge said. However, collapses of high-profile business leaders such as WeWork's Adam Neumann and Ther- anos' Elizabeth Holmes have cast doubt on the value of such traits in positions of power. That said, Mr. Wooldridge wrote that charismatic leaders will not disappear. This is in part because of the ongoing techno- logical revolution inviting such personalities. Elon Musk's "bi- zarre" behavior, for example, often is excused given his suc- cess at Tesla and SpaceX, Mr. Wooldridge wrote. Mr. Wooldridge said innovation and creating meaning during times of disruption are more important for leaders to priori- tize than simply maintaining the status quo. He also wrote that charismatic leaders can convince the best talent to join their organizations by creating charming narratives. n 4 mindsets that define the best CEOs By Georgina Gonzalez I n the process of conducting research for their book, three partners at consultancy McKinsey & Co. reviewed more than 20 years' worth of data from 7,800 CEOs and over 3,500 public companies across the globe to find what makes the best CEOs. Below are four characteristics the authors identified in the most successful CEOs during a December 2021 interview: 1. They use a microscope and a telescope. The best CEOs are able to look at external trends and patterns as well as turn in- ward and manage the day to day of their companies efficiently. 2. They are bold. No matter the industry context or circum- stance, the authors found that the best CEOs were willing to be bold. This boldness was a bulwark against failure. 3. They analyze the uncontrollable. Market pressures and economic factors are bound to influence different sectors in different ways that are uncontrollable. However, the authors found that the best CEOs analyzed these market trends and harnessed them to steer the company in a different, more fu- turist direction. 4. They reframe the game. Many of the best CEOs continually expand their horizons and goals, looking at how they can dom- inate the largest area and upgrade shortsighted thinking. n

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