Surgery Partners, Inc. has completed the sale of two hospital operations to Intermountain Health. The transaction, finalized on September 14, 2026, involved the disposition of Mountain View Hospital, LLC and Idaho Falls Community Hospital, LLC. These facilities were sold through certain of Surgery Partners' subsidiaries.
The sale agreement was initially entered into on July 21, 2026, and included an escrow arrangement. The transaction became effective following the satisfaction of conditions to release from escrow, which included the receipt of required physician approvals. The Disposed Business consisted of the hospitals' operations, including substantially all assets and certain liabilities.
Under the Securities Purchase Agreements, Surgery Partners received aggregate consideration of approximately $796.6 million. This total includes consideration for the Disposed Business and the termination of the Company's management agreement with Mountain View Hospital. The total consideration is subject to further adjustments for closing cash, indebtedness, transaction expenses, and customary post-closing adjustments.
The Company intends to use the proceeds from the sale primarily to pay down debt. In connection with the transaction, Surgery Partners filed unaudited pro forma condensed consolidated financial statements. These documents reflect the Company's financial position as if the transaction had occurred on June 30, 2026, and its results of operations as if the transaction had occurred on January 1, 2025.
The pro forma financial information indicates that the transaction resulted in a net cash consideration of approximately $586.5 million at closing. The filing also notes an estimated gain on the sale of the Disposed Business of $16.4 million, calculated as of June 30, 2026. This gain is subject to customary post-closing adjustments and other closing-related accounting estimates.
