The next phase of Tenet Healthcare Corporation’s THC growth is increasingly unfolding beyond its hospitals. Through United Surgical Partners International (“USPI”), Tenet is expanding its ambulatory surgery center (ASC) network to benefit from the healthcare industry's steady shift toward lower-cost outpatient care. As higher-acuity procedures continue shifting to outpatient settings, USPI is becoming an increasingly important driver of long-term growth.
That strategy is already translating into strong results. In the first quarter of 2026, USPI generated $484 million in adjusted EBITDA, up 6.1% year over year, while same-facility revenues increased 5.3%. The business also posted double-digit growth in outpatient joint replacements, reflecting rising demand for higher-acuity procedures. Despite weather-related disruptions, USPI delivered a stronger-than-expected quarter, underscoring the strength of the business.
Tenet is backing that momentum with continued investment. It invested $125 million during the quarter to acquire seven ASCs and open three de novo centers, completing nearly half of its planned annual investment. A healthy acquisition pipeline, coupled with reaffirmed full-year guidance, reflects confidence in USPI's long-term growth trajectory.
More importantly, USPI is helping reshape Tenet's portfolio. By expanding higher-acuity outpatient services, the company enables more complex procedures to be performed in lower-cost settings, supporting long-term growth and profitability. As the shift toward outpatient care continues, USPI is well positioned to remain a key driver of Tenet's long-term growth and shareholder value.
How Do Peers Compare?
Tenet is not alone in capitalizing on the shift toward outpatient care. Medical peers such as Surgery Partners, Inc. SGRY and HCA Healthcare, Inc. HCA are also expanding their outpatient surgery networks to meet growing demand for lower-cost, high-quality surgical care.
Surgery Partners continues to expand its ambulatory surgery center network through acquisitions, physician partnerships and a growing focus on higher-acuity procedures. SGRY's strategy reflects the increasing demand for outpatient surgical care and reinforces the long-term growth potential of the ASC market.
HCA Healthcare continues investing in ambulatory surgery centers and outpatient facilities while expanding higher-acuity service lines. HCA is also increasing capacity across its outpatient network to support future patient demand and long-term growth.
THC’s Price Performance, Valuation & Estimates
Shares of Tenet Healthcare have gained 8.6% over the past year compared to the industry's 4.3% decline over the same period.
From a valuation standpoint, THC trades at a forward price-to-earnings ratio of 10.62X, up from the industry average of 9.06X. THCcarries a Value Score of A.
The Zacks Consensus Estimate for THC’s 2026 earnings is pegged at $17.61 per share, implying a 4.9% jump from the year-ago period’s level.
THC currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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