Surgery Partners (SGRY) has completed the sale of its hospital operations in Idaho Falls to Intermountain Health for approximately $797 million in gross proceeds. The transaction, which closed on September 14, 2026, is part of the company's strategy to become a pure-play, short-stay surgical provider. SGRY intends to use the net proceeds from the sale primarily to reduce its debt.
Key Details
- Transaction Terms: The sale includes Mountain View Hospital and Idaho Falls Community Hospital for gross proceeds of $796.6 million ($587 million in net cash proceeds at closing).
- Use of Proceeds & Financial Impact: Proceeds will be used for debt repayment, which is expected to improve balance sheet leverage by 30 basis points from 4.4x at the end of Q2 2026.
- Updated 2026 Guidance: The company updated its full-year 2026 guidance to reflect the divestiture, forecasting revenue of $3.08 billion to $3.18 billion and Adjusted EBITDA of at least $489 million.
- Strategic Realignment: The sale significantly streamlines SGRY's portfolio by reducing its Medicaid payor mix by 50% and eliminating non-core service lines such as neonatology and obstetrics.