Tenet Healthcare plans to grow its ambulatory surgical center footprint and invest in specialty hospital care after a strong first quarter, CEO Dr. Saum Sutaria said.
During a first-quarter earnings call with analysts Tuesday, Sutaria said Tenet spent $449 million on 45 new ambulatory facilities during the quarter and the system anticipates more mergers and acquisitions and start-up investments for its ambulatory surgical center division.
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He also said Tenet plans to put more money into hospitals with specialized care services, through investments in robotics and other technology. The system ended the first quarter with $346 million in free cash flow, Sutaria said.
The for-profit health system has 52 hospitals and 640 other sites of care, including surgery centers, surgical hospitals and outpatient facilities. Tenet is the parent company of United Surgical Partners International, one of the largest networks of ambulatory surgical centers, with nearly 500 locations.
The Dallas-based system was on a selling spree in the first quarter, selling two facilities to Roseville, California-based Adventist Health, three South Carolina hospitals to Winston-Salem, North Carolina-based Novant Health, four hospitals to Orange, California-based UCI Health and five of its leased properties to Sila Realty Trust Inc.
The company reported first-quarter net income of $2.15 billion, or $21.38 per share, compared with net income of $143 million, or $1.32 per share, in the year-ago period. Executives attributed the strong performance, in part, to the asset sales.
Tenet raised its 2024 financial outlook, estimating net income from continuing operations would be in the range of $2.62 billion, or $8.37 per share, to $2.76 billion, or $9.41 per share.
It maintained its estimate that inpatient and outpatient admissions would each grow by 1% to 3% this year.
Tenet's plans to open a new high acuity hospital in San Antonio, Texas, by the end of the second quarter remain on track, Sutaria said.
