Brentwood, Tenn.-based Surgery Partners is doubling down on independence following the decision not to proceed with Bain Capital’s proposed acquisition, according to the company’s second quarter earnings call transcribed by Seeking Alpha.
In the call, CEO Eric Evans emphasized that the decision reaffirmed Surgery Partners’ market leadership, the strength of its value proposition and the $150 billion addressable market it aims to capture.
Here are four more key notes to know:
1. Mr. Evans said that physicians recruited in the first half of 2024 delivered 68% more cases and 121% more revenue in the first half of 2025 compared to their initial period.
“We remain optimistic that we’re going to be in that 500 to 600 new recruits kind of number,” Mr. Evans said. “It’s a multi-year return.”
2. Mr. Evans also expressed enthusiasm for CMS’ proposed 2026 outpatient rule, which includes adding 276 procedures to the ASC Covered Procedures List and removing 271 from the inpatient-only list.
“There’s a lot of power in just simplifying where a physician doesn’t have to stop and think about, ‘Can I do this in the ASC or not?’” Mr. Evans said. “Removing obstacles for any of our physicians to bring their whole book of business is incredibly powerful.”
3. Surgery Partners is leaning into its de novo facility development strategy, with an emphasis on building high-acuity, hyper-focused facilities, particularly in orthopedics and cardiology. This strategy provides the opportunity to “negotiate initial rates with payers based on the fact that [these procedures] are usually coming out of hospitals,” he said.
“They give us the opportunity to be focused factories in our core service lines,” Mr. Evans said.
4. Surgery Partners pegs its total addressable market at $150 billion, with a significant portion still tied up in hospitals, not because of regulation, but due to technological barriers.
“There’s a fair amount of business… still in hospitals due to a piece of technology,” Mr. Evans said. “Those are things that we’re going to solve over time.”
