Intermountain Health has agreed to acquire full ownership of two hospitals and more than 60 affiliated clinics in southeast Idaho that it had been co-owning with Surgery Partners and local physicians. The transaction is valued at almost $1.2 billion and was announced by the companies. Surgery Partners is expected to receive just under $800 million in cash proceeds from the deal, though the final amount is subject to adjustment and was not precisely quantified in the source.
The companies described the transaction as proposed; it is subject to customary closing conditions and specific approvals. Surgery Partners emphasized that until required approvals are obtained, there is no assurance the transaction will be completed.
The assets named in the announcement are Mountain View Hospital and Idaho Falls Community Hospital, together with affiliated clinics in southeast Idaho. Intermountain and Surgery Partners — along with local physicians — had jointly owned the network since 2023. If the transaction closes, operational control of these facilities will transfer fully to Salt Lake City-based Intermountain.
The deal value reported by the companies is nearly $1.2 billion, and Surgery Partners said it expects to net almost $800 million in cash proceeds upon close, though the final cash proceeds may be adjusted. Cited third-party data indicate the two hospitals produced about $740 million in revenue last year and roughly $100 million in earnings before interest, taxes and other adjustments, according to the American Hospital Association directory as referenced by an analyst at TD Cowen.
Surgery Partners characterized the proceeds as “substantial” but did not provide a final cash figure in the release. The company noted the amount is subject to adjustment, and that it therefore could not precisely ballpark final proceeds at this time.
The parties said the transaction requires certain approvals before it can close. In particular, Intermountain and Surgery Partners need approval from Mountain View Hospital’s physician member and physician governing board. The companies cautioned that the absence of these approvals would mean there is no guarantee the deal will be completed. Other standard closing conditions were noted but not detailed in the announcement.
According to the release, the facilities’ leadership, jobs and compensation are expected to remain unchanged after the transfer of ownership. The source did not report additional operational changes, integration plans, or specific commitments beyond retaining current leadership and staffing arrangements.
Surgery Partners framed the divestiture as a major step in a broader portfolio optimization strategy. Management said selling larger, more capital-intensive hospital assets aligns with an ongoing shift toward a more outpatient-focused model. The company operates surgical facilities, multi-specialty physician practices and anesthesia services across multiple states and has emphasized growth in ambulatory surgery centers, including de novo builds in its pipeline.
Surgery Partners’ CEO described the transaction as the largest step forward to date for simplifying operations and accelerating focus on the ambulatory surgery center space. The company hopes the cash proceeds will support its strategic reorientation, although the final proceeds figure remains subject to adjustment.
For Intermountain, acquiring these Idaho hospitals and clinics would expand a nonprofit regional system that already owns 34 hospitals and about 400 clinics across six states. The facilities could strengthen Intermountain’s regional footprint as the nonprofit continues capital expenditures and strategic deals following reported stability in revenue and income growth the prior year.
The acquisition follows other Intermountain moves cited in the announcement, including recent expansions of services in Nevada and eastern Montana and a previously announced joint venture with AdventHealth to jointly operate facilities in Denver.
The companies indicated the transaction is proposed and may close in the coming months if the required approvals and closing conditions are met. Key next steps include obtaining the Mountain View Hospital physician member and physician governing board approvals. The source did not provide a detailed timeline for closing nor specified additional regulatory filings beyond the governance approvals noted.
Until those approvals are secured, Surgery Partners stressed there is no assurance the deal will be completed. The source did not report on any potential alternative outcomes, regulatory reviews beyond the governance approval, or specific integration milestones post-closing.