Orthopedics remains a strong area for ASCs, Tenet Healthcare's CEO Saum Sutaria, MD, said in a July 24 quarterly earnings call.
Tenet's ASC business, Dallas-based United Surgical Partners International, saw $1.14 billion in revenue during the second quarter — a 21.1% increase year-over-year.
In the second quarter Tenet grew its orthopedic footprint by adding 11 new centers, Dr. Sutaria said. Orthopedic case volume also grew, and outpatient total joint replacements rose 23% year-over-year.
"Acuity continuing to increase is a good fundamental marker of strength," he said, as transcribed by Seeking Alpha. "I've said this before, my view on the orthopedics area is it is the number one growth vector in this segment for the next … five to 10 years. There's just so much more that can be done in expanding the market, but also hospital outpatient-based work that moves into a freestanding setting … That's how it's always been in the ambulatory surgery environment. First, you get migration, then you get market expansion with more qualified patients who choose to go into a simpler, cheaper, easier service setting. I think both of those things will provide a tailwind. So, I continue to believe that the orthopedics arena will dwarf all of the other service opportunities in this area over the next five years."