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NASDAQ: SGRY Surgery Partners, Inc. 8-K

Surgery Partners completes $796.6M sale of two Idaho hospitals to Intermountain Health

Filed September 17, 2026 · Period ending September 14, 2026 · ~1 min read

4 key changes 3 high relevance 3 sections

Key Changes

  • high

    Completed sale of Mountain View Hospital and Idaho Falls Community Hospital to Intermountain Health for approximately $796.6 million in aggregate consideration.

  • high

    Divested business contributed $372.0 million of revenue for the six months ended June 30, 2026; pro forma revenue would be $1,287.8 million.

    Exhibit 99.1 view on EDGAR →
  • high

    Updated full-year 2026 guidance: revenue of $3.08–$3.18 billion and Adjusted EBITDA of at least $489 million, reflecting removal of Idaho Falls contribution.

    Exhibit 99.2 view on EDGAR →
  • medium

    Estimated gain on sale of $16.4 million net of transaction costs, subject to customary post-closing adjustments.

    Exhibit 99.1 view on EDGAR →

Summary

Surgery Partners completed the sale of its two Idaho hospitals—Mountain View Hospital and Idaho Falls Community Hospital—to Intermountain Health for approximately $796.6 million. The transaction closed on September 14, 2026, after satisfying conditions including physician approvals. The company received $797 million in gross proceeds and $587 million in net cash proceeds at closing, subject to customary adjustments.

The sale includes termination of the management agreement with Mountain View Hospital. The divested business contributed $372.0 million of revenue for the first half of 2026, and its removal reduces pro forma revenue to $1,287.8 million.

The company also updated full-year 2026 guidance to revenue of $3.08–$3.18 billion and Adjusted EBITDA of at least $489 million, reflecting the removal of the Idaho Falls contribution for the remainder of the year. On a pro forma basis excluding the facilities for the full year, revenue guidance is $2.60–$2.67 billion with Adjusted EBITDA of at least $414 million. For retail holders, the transaction simplifies the portfolio and strengthens the balance sheet, but it also removes a meaningful revenue and earnings contributor. The estimated gain on sale is $16.4 million net of transaction costs. The company's leverage improvement and debt reduction are the primary near-term benefits, while the updated guidance provides a clearer view of the remaining business.

Section-by-Section Diff

Event · Item 2.01 — Completion of Acquisition or Disposition of Assets

~300 words

Item 2.01 — Completion of Acquisition or Disposition of Assets filed; see Key Changes for terms.

3 Added
Added Hospital disposition completed high

Added in current filing · verify on EDGAR →

On September 14, 2026, Surgery Partners, Inc. (the "Company"), through certain of its subsidiaries, completed the disposition of Mountain View Hospital, LLC (“MVH”) and Idaho Falls Community Hospital, LLC (“IFCH”) (collectively, the "Disposed Business"), to Intermountain Health.

The company sold its hospital operations in Idaho, including Mountain View Hospital and Idaho Falls Community Hospital, to Intermountain Health. The transaction closed on September 14, 2026, after conditions including physician approvals were met.

Added Sale consideration high

Added in current filing · verify on EDGAR →

The Company received aggregate consideration of approximately $796.6 million, consisting of consideration for the Disposed Business and termination of the Company's management agreement with MVH.

Surgery Partners received roughly $796.6 million in total proceeds, which includes payment for the hospitals and the termination of its management agreement with Mountain View Hospital. The amount is subject to adjustments for closing cash, debt, and transaction expenses.

Added Use of proceeds medium

Added in current filing · verify on EDGAR →

The Company intends to use the proceeds primarily to pay down debt.

The company plans to use most of the sale proceeds to reduce its outstanding debt, which could improve its balance sheet and lower interest costs.

Event · Exhibit 99.1

Surgery Partners to sell two Idaho hospitals to Intermountain Health for ~$796.6M cash, with pro forma financials showing the impact.

4 Added
Added Hospital divestiture high

Added in current filing · view on EDGAR →

the Buyer will acquire from the Company the equity interests in MVH, IFCH, and associated subsidiaries (collectively, the "Disposed Business") for aggregate cash consideration of approximately $796.6 million (the "Transaction"), subject to further adjustments for closing cash and indebtedness, transaction expenses, as well as customary post-closing adjustments.

Surgery Partners is selling its ownership interests in Mountain View Hospital and Idaho Falls Community Hospital to Intermountain Health for about $796.6 million in cash, subject to closing adjustments. This is a significant divestiture that will reduce the company's hospital portfolio and generate substantial cash proceeds.

Added Pro forma revenue impact high

Added in current filing · view on EDGAR →

Revenues | $ 1,659.8 | $ (372.0) | (b) | $ 1,287.8

For the six months ended June 30, 2026, the divested business contributed $372.0 million of the company's $1,659.8 million in revenue. Pro forma revenue after the sale would be $1,287.8 million, a reduction of about 22%.

Added Pro forma net loss impact high

Added in current filing · view on EDGAR →

Net income (loss) attributable to Surgery Partners, Inc. $ (50.9) | $ (18.3) | $ (69.2)

The divestiture would increase the company's net loss attributable to Surgery Partners from $50.9 million to $69.2 million for the six months ended June 30, 2026. The sold business was contributing positive earnings, so its removal worsens the bottom line.

Added Pro forma balance sheet impact medium

Added in current filing · view on EDGAR →

Total assets | $ 8,049.7 | $ (643.1) | $ 7,406.6

The sale would reduce total assets from $8,049.7 million to $7,406.6 million as of June 30, 2026, a decrease of $643.1 million. This reflects the removal of the divested hospitals' assets from the balance sheet.

Event · Exhibit 99.2

3 Added
Added Idaho Falls facilities sale completion high

Added in current filing · view on EDGAR →

Surgery Partners received $797 million in gross proceeds and $587 million in net cash proceeds at closing, subject to customary post-closing adjustments.

The company completed the previously announced sale of its ownership interests in the Idaho Falls Facilities to Intermountain Health. The transaction includes Mountain View Hospital and Idaho Falls Community Hospital. The deal values the combined facilities at approximately $1.15 billion.

Added Transaction valuation multiple medium

Added in current filing · view on EDGAR →

Transaction proceeds represent an approximately 7x multiple based on the Idaho Falls Facilities’ last 12 months adjusted EBITDA performance (through June 30, 2026), and an approximately 17x multiple based on average distributions received from Idaho Falls over the past three years.

The sale price implies a 7x multiple on trailing twelve-month adjusted EBITDA and a 17x multiple on average distributions received over the past three years. These multiples provide context on the valuation the company achieved for the divested assets.

Added Pro forma 2026 guidance excluding Idaho Falls medium

Added in current filing · view on EDGAR →

On a pro forma basis, excluding the Idaho Falls Facilities for the full-year 2026, revenue guidance is in the range of $2.60 billion to $2.67 billion and Adjusted EBITDA guidance is at least $414 million.

On a pro forma basis excluding the Idaho Falls Facilities for the entire year, revenue guidance is $2.60 billion to $2.67 billion with Adjusted EBITDA of at least $414 million. This shows the underlying business performance without the divested assets.

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