Surgery Partners Shares Climb on $1.15 Billion Hospital Sale Agreement

Shares of Surgery Partners Inc. (NASDAQ:SGRY) rose Friday after the company announced a definitive agreement to sell its ownership interests in two Idaho hospitals to Intermountain Health. The total transaction is valued at approximately $1.15 billion, with the deal representing a significant step in the company's strategic shift toward its core ambulatory surgery business.

Deal Details and Financials

Under the terms of the agreement, Surgery Partners will divest its stakes in Mountain View Hospital and Idaho Falls Community Hospital. The company stated it will receive total consideration of approximately $795 million for its ownership interests, with a substantial portion expected as cash proceeds upon closing, subject to customary adjustments.

Surgery Partners reaffirmed its full-year 2026 financial guidance, excluding the impact of this sale. The company continues to project:

• Revenues between $3.35 billion and $3.45 billion
• Adjusted EBITDA of at least $530 million

An update to the 2026 outlook reflecting the transaction's financial impact will be provided after the deal is finalized, the company said.

Strategic Rationale and Market Reaction

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Investors responded positively to the news, with Surgery Partners' stock climbing 5.8% in Friday's trading. The divestiture aligns with the company's long-term strategy to refine its asset portfolio and concentrate on its primary growth area.

Chief Executive Officer Eric Evans described the sale as "the largest step forward in the company’s portfolio optimization strategy." He added that the move simplifies operations and better positions Surgery Partners to "accelerate momentum in the ambulatory surgery center space." The company noted its partnership with Intermountain Health will continue following the transaction.

Conditions and Timeline

The sale is subject to several closing conditions, including approvals from the Mountain View Hospital physician members and its governing board. The transaction must also clear regulatory hurdles, including the expiration of the waiting period under the Hart-Scott-Rodino Act, and obtain other necessary third-party consents.

The deal is expected to close in the coming months, pending the satisfaction of all required approvals. The company also announced it will release its second-quarter 2026 financial results on August 10, 2026.