Surgery Partners agrees to sell its Idaho Falls hospitals to Intermountain for ~$795M

Surgery Partners has signed definitive agreements to sell its ownership interests in two Idaho Falls surgical facilities to Intermountain Health in a transaction that values the facilities at approximately $1.15 billion, with total consideration to Surgery Partners of roughly $795 million. The company disclosed the agreements in an 8-K filed July 24.

The assets are Mountain View Hospital, founded in 2002, and Idaho Falls Community Hospital, opened in 2019 — combined, 126 beds, more than 150 physicians, and nine surgical specialties alongside oncology, emergency, ICU and neonatology services. Surgery Partners said it and its existing partner Intermountain “placed into escrow signature pages to definitive agreements”; physician ownership of Mountain View Hospital would remain unchanged.

The deal is signed but not yet effective. Closing requires execution of binding securities purchase agreements following “requisite Mountain View Hospital physician member and physician governing board approvals,” and the company warned that “unless and until these approvals are obtained, there is no assurance regarding the completion of the transaction.” Closing is also conditioned on expiration of the Hart-Scott-Rodino waiting period, other material regulatory approvals and certain third-party consents. Surgery Partners expects the transaction to close “in the coming months.”

CEO Eric Evans framed the sale as the sharpest cut yet in the company’s portfolio strategy. The transaction, he said, “represents the largest step forward in our portfolio optimization strategy to date, simplifying our go forward operations, and positioning us to accelerate momentum in the rapidly growing, high-value ambulatory surgery center space.” Intermountain, a nonprofit system with 34 hospitals across six states, is “the best natural owner,” he said.

Surgery Partners did not put a net-cash figure on the proceeds, citing purchase-price adjustments for indebtedness, working capital and transaction expenses. It reaffirmed its 2026 outlook — revenue of $3.35 billion to $3.45 billion and adjusted EBITDA of at least $530 million — but noted that guidance excludes any impact from the sale. The company reports second-quarter results on August 10.