Dallas-based Tenet Healthcare said at the beginning of the year it would invest approximately $250 million annually into its ASC business, United Surgical Partners International.
That investment appears to be paying off with EBITDA margins for the division close to 40% in the third quarter and expected to rise to about 43% in the last three months of the year.
“Our financial results in the third quarter were strong with USPI and our hospitals’ adjusted EBITDA well above expectations,” CFO Dan Cancelmi said on an investor call Oct. 30 discussing third-quarter results.
Net operating revenues at the USPI business were up 16.7% in the quarter year over year to $941 million, while adjusted EBITDA was up approximately 16% to $370 million. In the nine months ending Sept. 30, such revenues totaled $2.8 billion, compared with $2.3 billion in the same period in 2022, Becker’s reports. Read more.
