Surgery Partners is betting on physician recruiting, not M&A, for growth: 5 things to know

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Brentwood, Tenn.-based Surgery Partners has added 330 physicians so far in 2026, and this year’s recruits are generating revenue nearly 16% faster than last year’s class did, according to Eric Evans, the company’s CEO.

Here are five things to know about Surgery Partners’ physician recruiting and retention strategy going forward, according to its second-quarter earnings call, transcribed by Investing.com.

1. The company recruited 191 new physicians in the second quarter alone, bringing its year-to-date total to 330. Mr. Evans said the mix “continues to be broad-based across our specialties, including orthopedics, ophthalmology, GI, pain and other service lines.”

2. The newest recruiting class is ramping up faster than last year’s. The initial revenue contribution from the 2026 cohort is up nearly 16% compared with the 2025 cohort, Mr. Evans said.

3. New recruits take time to hit their stride. Mr. Evans said a typical physician recruit “will double their business in year two,” and that “these recruiting cohorts compound over time as physicians build volumes in our facilities,” meaning this year’s 330 recruits will keep adding volume well beyond 2026.

4. That ramp-up timeline helps explain why overall case volume growth has been modest. Total case volume across Surgery Partners’ facilities grew just 0.3% in the second quarter, with same-facility revenue growth of 5% driven almost entirely by a 4.8% increase in revenue per case rather than more procedures.

5. Recruiting is one of the few growth levers not tied to a deal. With mergers and acquisition activity described as “extremely disciplined” this year and a $795 million hospital divestiture underway in Idaho Falls, Idaho, Mr. Evans pointed to recruiting as core to the company’s growth: “We believe our recruiting capabilities, physician relationships and differentiated operating platform remain key contributors to sustainable growth.”

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