Regardless of a powerful spike in demand for pressing care in the course of the pandemic, Tenet Healthcare introduced Friday it is largely getting out of that enterprise.
Dallas-based Tenet and FastMed Pressing Care reached a definitive settlement for FastMed to purchase 87 of the investor-owned hospital chain’s urgent-care facilities for $80 million, which Tenet mentioned is the overwhelming majority of pressing care heart it owns. Tenet shares have been buying and selling about 1% decrease on the information as of noon Friday.
The proposed deal comes because the COVID-19 pandemic has shifted a big contingent of affected person care into urgent-care services that beforehand would have been handled in emergency rooms. Skyrocketing demand for COVID testing in sizzling spots is liable for at the very least a few of that demand.
Tenet itself noticed “very sturdy development” throughout its urgent-care facilities within the third quarter, which ended Sept. 30, driving eight% year-over-year development in United Surgical Companions Worldwide’s non-surgical visits, Chief Monetary Officer Dan Cancelmi mentioned on the corporate’s latest earnings name.
Tenet mentioned in a information launch that this deal will assist the corporate sharpen its concentrate on rising and increasing its ambulatory surgical procedure sector. Simply final week, Tenet mentioned it plans to purchase as much as 45 ambulatory surgical procedure facilities for $1.1 billion. Information of that deal triggered a inventory transaction that netted Tenet CEO Ron Rittenmeyer $9.6 million.
Tenet reported proudly owning 108 urgent-care facilities on the finish of 2019, together with 69 MedPost services in its hospital operations division and 39 CareSpot services beneath USPI, though Tenet spokeswoman Lesley Bogdanow mentioned the corporate has trimmed the portfolio since then. She declined to share what number of urgent-care facilities Tenet will personal as soon as the FastMed transaction is full.
The acquisitions increase FastMed into Florida and California, the place many of the facilities are situated, and will increase its attain in Arizona and Texas. The events mentioned they anticipate the deal to shut within the first quarter of 2021 pending regulatory approvals and shutting circumstances.
FastMed is already one of many nation’s largest impartial urgent-care suppliers, with 104 areas in North Carolina, Arizona and Texas. The corporate has company workplaces in Raleigh, N.C., Scottsdale, Ariz., and Houston, Texas.
Tenet’s Chief Working Officer, Dr. Saum Sutaria, mentioned on the third quarter name that regardless of slower emergency division demand in the course of the pandemic, he would not predict a everlasting shift from EDs to pressing care.
“I am not but dedicated to the idea that that demand has gone perpetually from hospitals,” he mentioned. “We’ll see how that performs out over the subsequent yr or two.”