The ratings on Addison, Texas-based United Surgical Partners International Inc. reflect the company's narrow operating focus as an owner and operator of surgical facilities, its aggressive growth strategy, and third-party reimbursement risks. Its recent acquisition of Surgis Inc. indicates its aggressive growth strategy, which is still appropriate for the existing rating category. Attractive industry demand characteristics, disciplined operating performance, and a diverse payor base partially mitigate these risks. As of Sept. 30, 2006, United Surgical operated or owned interests in 137 surgical facilities in the U.S. and the U.K. These facilities predominantly handle high volumes of profitable outpatient surgery, including high numbers of orthopedic and pain management cases. About 75 facilities are run in partnership with multiple healthcare system partners....
Companies mentioned in this report are: United Surgical Partners International Inc.,USP Domestic Holdings Inc.
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