Surgery Partners Hospital Sale Agreement
Surgery Partners Inc (NASDAQ:SGRY) saw its shares rise 5.8% on Friday after announcing an agreement to sell two Idaho Falls hospitals – Mountain View Hospital and Idaho Falls Community Hospital – to Intermountain Health for an aggregate purchase price of approximately $1.15 billion. Under the terms of the transaction, Surgery Partners will receive total consideration of roughly $795 million for its ownership interests in the two facilities, and it expects to obtain substantial cash proceeds at closing, with the final amount subject to customary purchase‑price adjustments.
The deal is contingent upon several approvals, including consent from Mountain View Hospital’s physician members and its physician governing board, the execution of binding Securities Purchase Agreements, the expiration of applicable waiting periods under the Hart‑Scott‑Rodino Act, the receipt of material regulatory approvals, and the acquisition of certain third‑party consents. The parties anticipate that the transaction will close in the coming months once all required approvals are secured.
Surgery Partners will maintain its partnership with Intermountain Health, and physician ownership of Mountain View Hospital will remain unchanged following the sale. Chief Executive Officer Eric Evans described the transaction as the largest step forward in the company’s portfolio‑optimization strategy, noting that it simplifies operations and positions Surgery Partners to accelerate momentum in the ambulatory surgery center space.
The company reaffirmed its 2026 outlook, excluding the impact of the hospital sale, projecting revenue in the range of $3.35 billion to $3.45 billion and Adjusted EBITDA of at least $530 million. Surgery Partners indicated that it will disclose further details on the expected financial impact of the transaction on its 2026 outlook at the appropriate time, subject to the deal’s completion. The firm also announced that its second‑quarter 2026 results will be released on Monday, August 10, 2026.