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Tenet Pays $630M for Larger Stake in United Surgical Partners

News  |  By John Commins  
   April 26, 2018

With the buyout, Tenet has increased its ownership in USPI from 80% to 95%. Baylor University Medical Center continues to have a 5% ownership interest in USPI.

Tenet Healthcare Corp. has purchased the 15% ownership interest in United Surgical Partners International from the private equity firm Welsh, Carson, Anderson & Stowe for $630 million, the Dallas-based hospital chain announced Wednesday.

With the buyout, Tenet has increased its ownership in USPI from 80% to 95%, effective immediately. Baylor University Medical Center, a subsidiary of Baylor Scott and White Health, continues to have a 5% ownership interest in USPI.

The buyout was completed on an accelerated timeline from the previously disclosed expected completion date of July 2019. Tenet said it has satisfied all of its remaining obligations to WCAS.  

"Accelerating our buy-up of the company is consistent with our efforts to move quickly to prioritize opportunities that will propel our future growth and deliver value to shareholders." Tenet CEO and Executive Chairman Ron Rittenmeyer said in a media release.

Addison, TX-based USPI owns more than 285 short-stay facilities serving more than 9,000 physicians and more than 2.8 million patients each year. USPI has joint-venture partnerships with more than 4,000 physicians and over 50 health systems nationwide, and employs 17,000 people.

D. Scott Mackesy, managing partner of WCAS, said the private equity firm enjoyed a two decades long relationship with USPI and leaves with "tremendous respect for the company – especially its people and track record of consistent execution."

"We have enjoyed working with both USPI and Tenet on the growth and evolution of such a strong business, and we believe the company is well positioned to deliver continued success in the future," Mackesy said.  

John Commins is a content specialist and online news editor for HealthLeaders, a Simplify Compliance brand.


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