Surgery Partners Inc saw its shares rise 5.8% on Friday after the company announced an agreement to divest its ownership interests in two Idaho Falls hospitals to Intermountain Health for approximately $1.15 billion.
Under the terms disclosed, Surgery Partners will receive total consideration of about $795 million for its stakes in Mountain View Hospital and Idaho Falls Community Hospital. The company said it expects to realize substantial cash proceeds when the transaction closes, with the final cash amount subject to customary purchase price adjustments.
The sale remains subject to a range of approvals and closing conditions. Among the required steps are approvals from Mountain View Hospital physician members and its physician governing board and the execution of binding Securities Purchase Agreements. The transaction also depends on the expiration of any applicable waiting periods under the Hart-Scott-Rodino Act, the receipt of material regulatory approvals and certain third-party consents.
Surgery Partners will maintain its ongoing partnership with Intermountain Health following the transaction. The company also emphasized that physician ownership of Mountain View Hospital will remain unchanged as part of the arrangement. Management expects the deal to close in the coming months, conditioned on securing the necessary approvals and consents.
Chief Executive Officer Eric Evans characterized the disposition as the largest single move in the company’s portfolio optimization plan. According to the company, the transaction is intended to simplify operations and better position Surgery Partners to accelerate momentum in the ambulatory surgery center space.
The company also confirmed its previously stated 2026 outlook on a basis that excludes the impact of the hospital sale. Revenues are still expected to be in a range of $3.35 billion to $3.45 billion, and Adjusted EBITDA is projected to be at least $530 million. Surgery Partners said it will disclose more detail about how the transaction is expected to affect its 2026 financial outlook at the appropriate time, once the deal is completed.
Investors can also note that Surgery Partners is scheduled to report second quarter 2026 results on Monday, August 10, 2026.
Key points
- Surgery Partners agreed to sell two Idaho Falls hospitals to Intermountain Health for approximately $1.15 billion, with about $795 million of consideration attributable to Surgery Partners.
- The deal requires multiple internal approvals, binding sale agreements, Hart-Scott-Rodino waiting period expiration, material regulatory approvals and third-party consents before it can close.
- Management reaffirmed its 2026 guidance excluding the transaction, with revenue guidance of $3.35 billion to $3.45 billion and Adjusted EBITDA of at least $530 million.
Sectors impacted - Healthcare providers, hospital operations, and outpatient/ambulatory surgery center markets may be affected by the portfolio change and subsequent strategic focus.
Risks and uncertainties
- Regulatory and antitrust clearances - The transaction depends on expiration of Hart-Scott-Rodino waiting periods and receipt of material regulatory approvals, any of which could delay or prevent closing. (Impacts regulatory and healthcare sectors)
- Third-party and internal approvals - Completion requires physician member and governing board approvals at Mountain View Hospital, execution of binding agreements and certain third-party consents, all of which introduce execution risk. (Impacts hospital governance and transaction certainty)
- Final consideration adjustments - The approximate $795 million cash consideration is subject to customary purchase price adjustments, meaning the ultimate cash proceeds at closing could differ from current estimates. (Impacts Surgery Partners’ balance sheet and liquidity planning)
This report presents the details of the announced agreement and the company disclosures related to the expected timing, approvals and financial guidance. No additional projections or outcomes beyond the company statements have been included.