{"success":true,"data":{"pressRelease":{"id":"146444","rtpr_id":"nGNX6fGYb6-20260917","ticker":"SGRY","exchange":"NASDAQ","all_tickers":["SGRY"],"title":"Surgery Partners Completes Sale of Ownership Interests in Idaho Falls Facilities to Intermountain Health; Updates Guidance to Include Impact of the Transaction","author":"Globe Newswire","published_at":"2026-09-17T13:00:00.670Z","article_body":"BRENTWOOD, Tenn., Sept. 17, 2026 (GLOBE NEWSWIRE) -- Surgery Partners, Inc.\n(NASDAQ:SGRY) (“Surgery Partners” or the “Company”), a leading\nshort-stay surgical facility owner and operator, today announced it has\ncompleted the previously announced sale of its ownership interests in its\nIdaho Falls facilities to Intermountain Health.\n\nUnder the terms of the Securities Purchase Agreements, Surgery Partners\nreceived $797 million in gross proceeds and $587 million in net cash proceeds\nat closing, subject to customary post-closing adjustments. The transaction\nincludes Mountain View Hospital and Idaho Falls Community Hospital (together,\nreferred to as Idaho Falls Facilities). Under Intermountain Health leadership,\nphysician ownership of Mountain View Hospital will remain unchanged.\n\n\"With the completion of this important transaction, Surgery Partners enters a\nnew chapter better positioned for long-term growth as a pure-play short-stay\nsurgical provider,\" said Eric Evans, Chief Executive Officer of Surgery\nPartners. “As we recently disclosed in our second quarter earnings call, our\ncore business is delivering strong results, with same facility revenue growth\ndriven by our continued focus on higher-acuity procedures and a differentiated\noperating platform. Our updated full-year 2026 outlook underscores the benefit\nof our portfolio optimization actions, with this transaction expected to be\naccretive to adjusted earnings growth on an annual basis, in addition to\nreducing our balance sheet leverage and improving free cash flow conversion.\nWe are encouraged by our recent momentum and remain confident in our long-term\nstrategy and ability to deliver sustained value for stockholders.\"\n\nFinancial Highlights\n* The transaction values the combined Idaho Falls Facilities at approximately\n$1.15 billion, with total consideration to Surgery Partners of approximately\n$797 million of gross proceeds and $587 million of net cash proceeds.\n* Transaction proceeds represent an approximately 7x multiple based on the\nIdaho Falls Facilities’ last 12 months adjusted EBITDA performance (through\nJune 30, 2026), and an approximately 17x multiple based on average\ndistributions received from Idaho Falls over the past three years.\n* Balance sheet leverage, as calculated under the Company’s credit\nagreement, is expected to improve by 30bps, from 4.4x at the end of Q2 2026.\n* Transaction proceeds will be used primarily to pay down debt.\nOperational Highlights\n\nThis transaction significantly streamlines Surgery Partners’ business and\nportfolio. Excluding the Idaho Falls Facilities, the Company expects:\n* 50% reduction in Medicaid payor mix, with new annualized mix expected to be\nunder 2% of revenue.\n* 100% elimination of neonatology and obstetrics service lines.\n* 50% reduction in intensive care beds and majority reduction in total\nemergency department visits.\n* 75% reduction in non-surgical admissions.\n* 100% elimination of inpatient pediatrics businesses.\n* 100% reduction in retail and compounding pharmacy service lines.\nUpdated 2026 Guidance\n* Full-year 2026 revenue guidance is in the range of $3.08 billion to $3.18\nbillion and Adjusted EBITDA guidance is at least $489 million, reflecting the\nremoval of the Idaho Falls Facilities’ contribution for the remaining\nportion of the year.\n* On a pro forma basis, excluding the Idaho Falls Facilities for the full-year\n2026, revenue guidance is in the range of $2.60 billion to $2.67 billion and\nAdjusted EBITDA guidance is at least $414 million.\nAdvisors\n\nBarclays served as the lead financial advisor to Surgery Partners, and\nMcDermott Will & Schulte LLP served as its legal counsel. RBC Capital Markets,\nLLC served as the lead financial advisor to Intermountain Health, and Hall,\nRender, Killian, Heath & Lyman, P.C. served as its legal counsel.\n\nAbout Surgery Partners\n\nHeadquartered in Brentwood, Tennessee, Surgery Partners is a leading\nhealthcare services company with a differentiated outpatient delivery model\nfocused on providing high-quality, cost-effective solutions for surgical and\nrelated ancillary care in support of both patients and physicians. Founded in\n2004, Surgery Partners is one of the largest and fastest growing surgical\nservices businesses in the country, with more than 200 locations in 30 states,\nincluding ambulatory surgery centers, surgical hospitals, multi-specialty\nphysician practices and urgent care facilities. For additional information,\nvisit www.surgerypartners.com.\n\nAbout Idaho Falls Facilities\n\nThe Idaho Falls Facilities have built a long-standing reputation as preferred\nproviders and leaders in delivering high-quality, affordable care for the\nIdaho Falls region. Mountain View Hospital was founded in 2002 and has grown\ninto a leading surgical hub and Level III NICU, with the opening of the Idaho\nFalls Community Hospital in 2019 adding scalable acute care capabilities.\nCombined, the locations employ over 150 physicians and include 126 beds with a\nbreadth of services across nine surgical specialties and a diverse range of\nadditional service lines, including oncology, emergency department and ICU\nservices, and neonatology.\n\nAbout Intermountain Health\n\nHeadquartered in Utah with locations in six states and additional operations\nacross the western U.S., Intermountain Health is a nonprofit system of 34\nhospitals, approximately 400 clinics, medical groups with some 4,600 employed\nphysicians and advanced care providers, a nonprofit health plan called Select\nHealth with more than one million members, and other health services. Helping\npeople live the healthiest lives possible, Intermountain is committed to\nimproving community health and is widely recognized as a leader in\ntransforming healthcare by using evidence-based best practices to consistently\ndeliver high-quality outcomes at sustainable costs.\n\nCautionary Statement Regarding Forward Looking Statements\n\nThis press release contains forward-looking statements, including those\nregarding growth, our anticipated operating results for future periods and\nother similar statements. These statements can be identified by the use of\nwords such as \"believes,\" \"anticipates,\" \"expects,\" \"intends,\" \"plans,\"\n\"continues,\" \"estimates,\" \"predicts,\" \"projects,\" \"forecasts,\" \"may,\" \"could,\"\nand similar expressions. All forward-looking statements are based on current\nexpectations and beliefs as of the date of this release and are subject to\nrisks, uncertainties and other factors that may cause actual results to differ\nmaterially from the expectations discussed in, or implied by, the\nforward-looking statements. Many of these factors are beyond our ability to\ncontrol or predict including, without limitation, the possibility that the\nanticipated benefits of the sale to the Company are not realized as expected,\nthe potential adverse effect of the announcement on the market price of, or\ntrading in, the Company’s securities and on the Company's business\nrelationships, operating results, and business generally, including the\nability to retain key personnel; potential litigation relating to the\ntransaction that could be instituted against the Company or its affiliates,\nofficers, or directors, and the effects of any outcomes related thereto;\nreductions in payments from government health care programs and private\ninsurance payors, such as health maintenance organizations, preferred provider\norganizations, and other managed care organizations and employers; our ability\nto contract with private insurance payors; changes in our payor mix or\nsurgical case mix; failure to maintain or develop relationships with\nphysicians on beneficial or favorable terms, or at all; the impact of payor\ncontrols designed to reduce the number of surgical procedures; our efforts to\nintegrate operations of acquired or developed businesses and surgical\nfacilities, attract new physician partners, or acquire additional surgical\nfacilities; supply chain issues, including shortages or quality control issues\nwith surgery-related products, equipment and medical supplies; competition for\nphysicians, nurses, strategic relationships, acquisitions and managed care\ncontracts; our ability to attract and retain qualified health care\nprofessionals; our ability to enforce non-compete restrictions against our\nphysicians; our ability to manage material liabilities whether known or\nunknown incurred as a result of acquiring or operating surgical facilities;\nthe impact of future legislation and other health care regulatory reform\nactions, and the effect of that legislation and other regulatory actions on\nour business; our ability to comply with current health care laws and\nregulations; the outcome of legal and regulatory proceedings that have been or\nmay be brought against us; the impact of cybersecurity attacks or intrusions,\nchanges in the regulatory, economic and other conditions of the states where\nour surgical facilities are located; our indebtedness; the social and economic\nimpact of a pandemic, epidemic or outbreak of a contagious disease on our\nbusiness; and the risks and uncertainties identified and discussed from time\nto time in the Company’s reports filed with the Securities and Exchange\nCommission (the \"SEC\"), including in Item 1A under the heading \"Risk Factors\"\nin the Company’s Annual Report on Form 10-K for the year ended December 31,\n2025 and other reports filed with the SEC. Except as required by law, the\nCompany undertakes no obligation to revise or update publicly any\nforward-looking statements to reflect events or circumstances after the date\nof this report, or to reflect the occurrence of unanticipated events or\ncircumstances.\n\nUse of Non-GAAP Financial Measures\n\nThis press release contains non-GAAP financial measures. A “non-GAAP\nfinancial measure” is defined as a numerical measure of a company’s\nfinancial performance that excludes or includes amounts so as to be different\nthan the most directly comparable measure calculated and presented in\naccordance with generally accepted accounting principles in the United States\n(“GAAP”). We present non-GAAP financial measures when we believe that the\nadditional information is useful and meaningful to investors. Non-GAAP\nfinancial measures do not have any standardized meaning and are therefore\nunlikely to be comparable to similar measures presented by other companies.\nThe presentation of non-GAAP financial measures is not intended to be a\nsubstitute for, and should not be considered in isolation from, financial\nmeasures reported in accordance with GAAP. We are not able to project\ncomponents of the 2026 Adjusted EBITDA guidance and therefore cannot provide a\nreconciliation of the forward-looking non-GAAP financial measures.\n\nContact\n\nSurgery Partners Investor Relations\n(615) 234-8940\nIR@surgerypartners.com\n\n(https://www.globenewswire.com/NewsRoom/AttachmentNg/d0188456-e6d3-48f9-8479-b40422f00e4c)\n\n\n\nGlobeNewswire, Inc. 2026","article_body_html":"","raw_payload":{"data":{"id":"nGNX6fGYb6-20260917","title":"Surgery Partners Completes Sale of Ownership Interests in Idaho Falls Facilities to Intermountain Health; Updates Guidance to Include Impact of the Transaction","author":"Globe Newswire","ticker":"SGRY","created":"2026-09-17T13:00:00.670Z","tickers":["SGRY"],"exchange":"NASDAQ","article_body":"BRENTWOOD, Tenn., Sept. 17, 2026 (GLOBE NEWSWIRE) -- Surgery Partners, Inc.\n(NASDAQ:SGRY) (“Surgery Partners” or the “Company”), a leading\nshort-stay surgical facility owner and operator, today announced it has\ncompleted the previously announced sale of its ownership interests in its\nIdaho Falls facilities to Intermountain Health.\n\nUnder the terms of the Securities Purchase Agreements, Surgery Partners\nreceived $797 million in gross proceeds and $587 million in net cash proceeds\nat closing, subject to customary post-closing adjustments. The transaction\nincludes Mountain View Hospital and Idaho Falls Community Hospital (together,\nreferred to as Idaho Falls Facilities). Under Intermountain Health leadership,\nphysician ownership of Mountain View Hospital will remain unchanged.\n\n\"With the completion of this important transaction, Surgery Partners enters a\nnew chapter better positioned for long-term growth as a pure-play short-stay\nsurgical provider,\" said Eric Evans, Chief Executive Officer of Surgery\nPartners. “As we recently disclosed in our second quarter earnings call, our\ncore business is delivering strong results, with same facility revenue growth\ndriven by our continued focus on higher-acuity procedures and a differentiated\noperating platform. Our updated full-year 2026 outlook underscores the benefit\nof our portfolio optimization actions, with this transaction expected to be\naccretive to adjusted earnings growth on an annual basis, in addition to\nreducing our balance sheet leverage and improving free cash flow conversion.\nWe are encouraged by our recent momentum and remain confident in our long-term\nstrategy and ability to deliver sustained value for stockholders.\"\n\nFinancial Highlights\n* The transaction values the combined Idaho Falls Facilities at approximately\n$1.15 billion, with total consideration to Surgery Partners of approximately\n$797 million of gross proceeds and $587 million of net cash proceeds.\n* Transaction proceeds represent an approximately 7x multiple based on the\nIdaho Falls Facilities’ last 12 months adjusted EBITDA performance (through\nJune 30, 2026), and an approximately 17x multiple based on average\ndistributions received from Idaho Falls over the past three years.\n* Balance sheet leverage, as calculated under the Company’s credit\nagreement, is expected to improve by 30bps, from 4.4x at the end of Q2 2026.\n* Transaction proceeds will be used primarily to pay down debt.\nOperational Highlights\n\nThis transaction significantly streamlines Surgery Partners’ business and\nportfolio. Excluding the Idaho Falls Facilities, the Company expects:\n* 50% reduction in Medicaid payor mix, with new annualized mix expected to be\nunder 2% of revenue.\n* 100% elimination of neonatology and obstetrics service lines.\n* 50% reduction in intensive care beds and majority reduction in total\nemergency department visits.\n* 75% reduction in non-surgical admissions.\n* 100% elimination of inpatient pediatrics businesses.\n* 100% reduction in retail and compounding pharmacy service lines.\nUpdated 2026 Guidance\n* Full-year 2026 revenue guidance is in the range of $3.08 billion to $3.18\nbillion and Adjusted EBITDA guidance is at least $489 million, reflecting the\nremoval of the Idaho Falls Facilities’ contribution for the remaining\nportion of the year.\n* On a pro forma basis, excluding the Idaho Falls Facilities for the full-year\n2026, revenue guidance is in the range of $2.60 billion to $2.67 billion and\nAdjusted EBITDA guidance is at least $414 million.\nAdvisors\n\nBarclays served as the lead financial advisor to Surgery Partners, and\nMcDermott Will & Schulte LLP served as its legal counsel. RBC Capital Markets,\nLLC served as the lead financial advisor to Intermountain Health, and Hall,\nRender, Killian, Heath & Lyman, P.C. served as its legal counsel.\n\nAbout Surgery Partners\n\nHeadquartered in Brentwood, Tennessee, Surgery Partners is a leading\nhealthcare services company with a differentiated outpatient delivery model\nfocused on providing high-quality, cost-effective solutions for surgical and\nrelated ancillary care in support of both patients and physicians. Founded in\n2004, Surgery Partners is one of the largest and fastest growing surgical\nservices businesses in the country, with more than 200 locations in 30 states,\nincluding ambulatory surgery centers, surgical hospitals, multi-specialty\nphysician practices and urgent care facilities. For additional information,\nvisit www.surgerypartners.com.\n\nAbout Idaho Falls Facilities\n\nThe Idaho Falls Facilities have built a long-standing reputation as preferred\nproviders and leaders in delivering high-quality, affordable care for the\nIdaho Falls region. Mountain View Hospital was founded in 2002 and has grown\ninto a leading surgical hub and Level III NICU, with the opening of the Idaho\nFalls Community Hospital in 2019 adding scalable acute care capabilities.\nCombined, the locations employ over 150 physicians and include 126 beds with a\nbreadth of services across nine surgical specialties and a diverse range of\nadditional service lines, including oncology, emergency department and ICU\nservices, and neonatology.\n\nAbout Intermountain Health\n\nHeadquartered in Utah with locations in six states and additional operations\nacross the western U.S., Intermountain Health is a nonprofit system of 34\nhospitals, approximately 400 clinics, medical groups with some 4,600 employed\nphysicians and advanced care providers, a nonprofit health plan called Select\nHealth with more than one million members, and other health services. Helping\npeople live the healthiest lives possible, Intermountain is committed to\nimproving community health and is widely recognized as a leader in\ntransforming healthcare by using evidence-based best practices to consistently\ndeliver high-quality outcomes at sustainable costs.\n\nCautionary Statement Regarding Forward Looking Statements\n\nThis press release contains forward-looking statements, including those\nregarding growth, our anticipated operating results for future periods and\nother similar statements. These statements can be identified by the use of\nwords such as \"believes,\" \"anticipates,\" \"expects,\" \"intends,\" \"plans,\"\n\"continues,\" \"estimates,\" \"predicts,\" \"projects,\" \"forecasts,\" \"may,\" \"could,\"\nand similar expressions. All forward-looking statements are based on current\nexpectations and beliefs as of the date of this release and are subject to\nrisks, uncertainties and other factors that may cause actual results to differ\nmaterially from the expectations discussed in, or implied by, the\nforward-looking statements. Many of these factors are beyond our ability to\ncontrol or predict including, without limitation, the possibility that the\nanticipated benefits of the sale to the Company are not realized as expected,\nthe potential adverse effect of the announcement on the market price of, or\ntrading in, the Company’s securities and on the Company's business\nrelationships, operating results, and business generally, including the\nability to retain key personnel; potential litigation relating to the\ntransaction that could be instituted against the Company or its affiliates,\nofficers, or directors, and the effects of any outcomes related thereto;\nreductions in payments from government health care programs and private\ninsurance payors, such as health maintenance organizations, preferred provider\norganizations, and other managed care organizations and employers; our ability\nto contract with private insurance payors; changes in our payor mix or\nsurgical case mix; failure to maintain or develop relationships with\nphysicians on beneficial or favorable terms, or at all; the impact of payor\ncontrols designed to reduce the number of surgical procedures; our efforts to\nintegrate operations of acquired or developed businesses and surgical\nfacilities, attract new physician partners, or acquire additional surgical\nfacilities; supply chain issues, including shortages or quality control issues\nwith surgery-related products, equipment and medical supplies; competition for\nphysicians, nurses, strategic relationships, acquisitions and managed care\ncontracts; our ability to attract and retain qualified health care\nprofessionals; our ability to enforce non-compete restrictions against our\nphysicians; our ability to manage material liabilities whether known or\nunknown incurred as a result of acquiring or operating surgical facilities;\nthe impact of future legislation and other health care regulatory reform\nactions, and the effect of that legislation and other regulatory actions on\nour business; our ability to comply with current health care laws and\nregulations; the outcome of legal and regulatory proceedings that have been or\nmay be brought against us; the impact of cybersecurity attacks or intrusions,\nchanges in the regulatory, economic and other conditions of the states where\nour surgical facilities are located; our indebtedness; the social and economic\nimpact of a pandemic, epidemic or outbreak of a contagious disease on our\nbusiness; and the risks and uncertainties identified and discussed from time\nto time in the Company’s reports filed with the Securities and Exchange\nCommission (the \"SEC\"), including in Item 1A under the heading \"Risk Factors\"\nin the Company’s Annual Report on Form 10-K for the year ended December 31,\n2025 and other reports filed with the SEC. Except as required by law, the\nCompany undertakes no obligation to revise or update publicly any\nforward-looking statements to reflect events or circumstances after the date\nof this report, or to reflect the occurrence of unanticipated events or\ncircumstances.\n\nUse of Non-GAAP Financial Measures\n\nThis press release contains non-GAAP financial measures. A “non-GAAP\nfinancial measure” is defined as a numerical measure of a company’s\nfinancial performance that excludes or includes amounts so as to be different\nthan the most directly comparable measure calculated and presented in\naccordance with generally accepted accounting principles in the United States\n(“GAAP”). We present non-GAAP financial measures when we believe that the\nadditional information is useful and meaningful to investors. Non-GAAP\nfinancial measures do not have any standardized meaning and are therefore\nunlikely to be comparable to similar measures presented by other companies.\nThe presentation of non-GAAP financial measures is not intended to be a\nsubstitute for, and should not be considered in isolation from, financial\nmeasures reported in accordance with GAAP. We are not able to project\ncomponents of the 2026 Adjusted EBITDA guidance and therefore cannot provide a\nreconciliation of the forward-looking non-GAAP financial measures.\n\nContact\n\nSurgery Partners Investor Relations\n(615) 234-8940\nIR@surgerypartners.com\n\n(https://www.globenewswire.com/NewsRoom/AttachmentNg/d0188456-e6d3-48f9-8479-b40422f00e4c)\n\n\n\nGlobeNewswire, Inc. 2026"},"type":"article","timestamp":"2026-09-17T13:00:00.981411385Z","server_sent_at_ms":1789650000981},"received_at":"2026-09-17T13:00:01.042Z","source_url":null},"analysis":{"id":"135283","press_release_id":"146444","analysis_json":{"industry":{"label":"Health Care Providers & Services","sector":"Health Care"},"redFlags":["Divestiture removes the Idaho Falls contribution — pro forma FY26 revenue base of $2.60-$2.67B is materially smaller than the $3.08-$3.18B guided range","Net cash proceeds ($587M) run roughly $210M below gross proceeds ($797M), reflecting taxes and post-closing adjustments","Forward-looking statements flag potential litigation relating to the transaction and risk that anticipated benefits are not realized"],"eventType":"m_and_a","narrative":"Surgery Partners has completed the sale of its ownership interests in its Idaho Falls facilities — Mountain View Hospital and Idaho Falls Community Hospital — to Intermountain Health, receiving $797 million in gross proceeds and $587 million in net cash at closing.\n\nThe transaction values the combined facilities at roughly $1.15 billion, about 7x their last-12-months adjusted EBITDA through June 30, 2026, and proceeds will primarily pay down debt, with credit-agreement leverage expected to improve 30bps from 4.4x at the end of Q2 2026.\n\nThe sale streamlines Surgery Partners into a pure-play short-stay surgical provider, cutting Medicaid payor mix by 50% to under 2% of revenue and fully eliminating obstetrics, neonatology, inpatient pediatrics, and retail and compounding pharmacy service lines.\n\nUpdated full-year 2026 guidance calls for revenue of $3.08-$3.18 billion and Adjusted EBITDA of at least $489 million ($2.60-$2.67 billion and at least $414 million pro forma excluding Idaho Falls for the full year), with management expecting the deal to be accretive to adjusted earnings growth, reduce leverage, and improve free cash flow conversion.","sentiment":"bullish","agentHooks":{"shouldPost":true,"suggestedAngle":"Pure-play pivot: $587M net cash funds debt paydown, trims leverage 30bps, and the deal is guided accretive to adjusted earnings growth with FY26 EBITDA of at least $489M."},"keyFigures":{"guidance":"FY2026 revenue $3.08B-$3.18B and Adjusted EBITDA at least $489M; pro forma excluding Idaho Falls for full-year 2026: revenue $2.60B-$2.67B and Adjusted EBITDA at least $414M","dealValueUsd":797000000,"customDimensions":{"leverage_q2_2026":"4.4x","gross_proceeds_usd":797000000,"divested_facilities":["Mountain View Hospital","Idaho Falls Community Hospital"],"ebitda_multiple_ltm":"~7x LTM adjusted EBITDA (through June 30, 2026)","leverage_improvement":"30bps","net_cash_proceeds_usd":587000000,"facility_valuation_usd":1150000000,"distribution_multiple_3yr":"~17x average distributions over past three years","medicaid_payor_mix_reduction":"50%, to under 2% of revenue"}},"quotedText":"core business is delivering strong results, with same facility revenue growth","namedEntities":{"people":[{"name":"Eric Evans","role":"Chief Executive Officer of Surgery Partners"}],"products":["Mountain View Hospital","Idaho Falls Community Hospital","Select Health"],"companies":[{"name":"Surgery Partners, Inc.","ticker":"SGRY","relationship":"filer/seller"},{"name":"Intermountain Health","relationship":"buyer/acquirer"},{"name":"Barclays","relationship":"lead financial advisor to Surgery Partners"},{"name":"McDermott Will & Schulte LLP","relationship":"legal counsel to Surgery Partners"},{"name":"RBC Capital Markets, LLC","relationship":"lead financial advisor to Intermountain Health"},{"name":"Hall, Render, Killian, Heath & Lyman, P.C.","relationship":"legal counsel to Intermountain Health"}],"dollarAmounts":[{"amount":"$797 million","context":"gross proceeds received at closing"},{"amount":"$587 million","context":"net cash proceeds received at closing"},{"amount":"$1.15 billion","context":"implied value of combined Idaho Falls Facilities"},{"amount":"$3.08 billion to $3.18 billion","context":"updated full-year 2026 revenue guidance"},{"amount":"$489 million","context":"updated full-year 2026 Adjusted EBITDA guidance floor"},{"amount":"$2.60 billion to $2.67 billion","context":"pro forma FY2026 revenue guidance excluding Idaho Falls"},{"amount":"$414 million","context":"pro forma FY2026 Adjusted EBITDA guidance floor excluding Idaho Falls"}]},"materialImpact":{"score":4,"reasoning":"Completed ~$1.15B divestiture of the Idaho Falls hospital platform delivers $587M net cash, a 30bps leverage improvement, and a reshaped pure-play surgical portfolio with updated FY26 guidance. Highly material for a mid-cap filer, though the deal was previously announced, which tempers the surprise factor."},"tickerRelevance":{"others":[],"primary":"SGRY"},"globalImportance":42,"audienceRelevance":32,"eventTypeSecondary":["guidance_update"],"importanceComponents":{"tickerTier":"mid-cap","eventGravity":"completed ~$1.15B divestiture with deleveraging and guidance update","sectorWeight":"healthcare services","guidanceImpact":true,"surpriseFactor":"low-moderate (previously announced deal, closing plus guidance)"}},"event_type":"m_and_a","event_type_secondary":["guidance_update"],"sentiment":"bullish","material_impact_score":4,"narrative":"Surgery Partners has completed the sale of its ownership interests in its Idaho Falls facilities — Mountain View Hospital and Idaho Falls Community Hospital — to Intermountain Health, receiving $797 million in gross proceeds and $587 million in net cash at closing.\n\nThe transaction values the combined facilities at roughly $1.15 billion, about 7x their last-12-months adjusted EBITDA through June 30, 2026, and proceeds will primarily pay down debt, with credit-agreement leverage expected to improve 30bps from 4.4x at the end of Q2 2026.\n\nThe sale streamlines Surgery Partners into a pure-play short-stay surgical provider, cutting Medicaid payor mix by 50% to under 2% of revenue and fully eliminating obstetrics, neonatology, inpatient pediatrics, and retail and compounding pharmacy service lines.\n\nUpdated full-year 2026 guidance calls for revenue of $3.08-$3.18 billion and Adjusted EBITDA of at least $489 million ($2.60-$2.67 billion and at least $414 million pro forma excluding Idaho Falls for the full year), with management expecting the deal to be accretive to adjusted earnings growth, reduce leverage, and improve free cash flow conversion.","key_figures":{"guidance":"FY2026 revenue $3.08B-$3.18B and Adjusted EBITDA at least $489M; pro forma excluding Idaho Falls for full-year 2026: revenue $2.60B-$2.67B and Adjusted EBITDA at least $414M","dealValueUsd":797000000,"customDimensions":{"leverage_q2_2026":"4.4x","gross_proceeds_usd":797000000,"divested_facilities":["Mountain View Hospital","Idaho Falls Community Hospital"],"ebitda_multiple_ltm":"~7x LTM adjusted EBITDA (through June 30, 2026)","leverage_improvement":"30bps","net_cash_proceeds_usd":587000000,"facility_valuation_usd":1150000000,"distribution_multiple_3yr":"~17x average distributions over past three years","medicaid_payor_mix_reduction":"50%, to under 2% of revenue"}},"named_entities":{"people":[{"name":"Eric Evans","role":"Chief Executive Officer of Surgery Partners"}],"products":["Mountain View Hospital","Idaho Falls Community Hospital","Select Health"],"companies":[{"name":"Surgery Partners, Inc.","ticker":"SGRY","relationship":"filer/seller"},{"name":"Intermountain Health","relationship":"buyer/acquirer"},{"name":"Barclays","relationship":"lead financial advisor to Surgery Partners"},{"name":"McDermott Will & Schulte LLP","relationship":"legal counsel to Surgery Partners"},{"name":"RBC Capital Markets, LLC","relationship":"lead financial advisor to Intermountain Health"},{"name":"Hall, Render, Killian, Heath & Lyman, P.C.","relationship":"legal counsel to Intermountain Health"}],"dollarAmounts":[{"amount":"$797 million","context":"gross proceeds received at closing"},{"amount":"$587 million","context":"net cash proceeds received at closing"},{"amount":"$1.15 billion","context":"implied value of combined Idaho Falls Facilities"},{"amount":"$3.08 billion to $3.18 billion","context":"updated full-year 2026 revenue guidance"},{"amount":"$489 million","context":"updated full-year 2026 Adjusted EBITDA guidance floor"},{"amount":"$2.60 billion to $2.67 billion","context":"pro forma FY2026 revenue guidance excluding Idaho Falls"},{"amount":"$414 million","context":"pro forma FY2026 Adjusted EBITDA guidance floor excluding Idaho Falls"}]},"model_name":"glm-5.3-flash","prompt_hash":"sha256:727b4b9429a443af","schema_hash":"sha256:05005c02d9cffac9","created_at":"2026-09-17T13:01:11.621Z","global_importance":42,"audience_relevance":32,"importance_components":{"tickerTier":"mid-cap","eventGravity":"completed ~$1.15B divestiture with deleveraging and guidance update","sectorWeight":"healthcare services","guidanceImpact":true,"surpriseFactor":"low-moderate (previously announced deal, closing plus guidance)"}},"durationMs":70570,"modelName":"glm-5.3-flash"}}