Surgery Partners Announces Sale of Two Idaho Hospitals for ~$796.6M

What Happened

• Surgery Partners, Inc. announced the completion of the disposition of Mountain View Hospital, LLC and Idaho Falls Community Hospital, LLC to Intermountain Health, effective September 14, 2026.
• The transaction followed two Securities Purchase Agreements dated July 21, 2026, and an escrow arrangement that required physician approvals before closing.
• Aggregate consideration received by the Company was approximately $796.6 million, which includes payment for the hospitals and termination of the Company’s management agreement with Mountain View Hospital. Consideration is subject to customary adjustments for closing cash, indebtedness, transaction expenses and other post-closing items.

Key Details

• Closing date: September 14, 2026 (purchase agreements dated July 21, 2026; escrow and approvals resolved).
• Assets sold: Mountain View Hospital and Idaho Falls Community Hospital and related subsidiaries — substantially all assets and certain liabilities tied to those hospital operations.
• Consideration: ~ $796.6 million total (subject to post-closing adjustments).
• Use of proceeds: Company intends to use the proceeds primarily to pay down debt.
• Additional disclosure: Company issued a press release (attached as Exhibit 99.2) and said more detail will be provided in financial statements and pro forma information to be filed.

Why It Matters

• The sale removes these hospital operations from Surgery Partners’ portfolio and will materially change the company’s operational footprint and revenue mix tied to those facilities.
• The roughly $796.6M in proceeds — once final adjustments are made — is intended mainly to reduce the company’s debt, which could strengthen the balance sheet and lower leverage.
• Investors should watch for the forthcoming financial statements and pro forma disclosures that will quantify the impact on revenue, assets, liabilities and future earnings.