Brentwood, Tenn.-based Surgery Partners has signed a definitive agreement to sell its ownership interests in two hospitals to Salt Lake City-based Intermountain Health for about $1.15 billion.
Surgery Partners is selling its ownership interests in Mountain View Hospital and Idaho Falls Community Hospital, both located in Idaho Falls, Idaho. The total consideration to Surgery Partners in the transaction is $795 million, with the company expecting to receive substantial cash proceeds when the deal closes, according to a July 24 news release from Surgery Partners.
In its first-quarter earnings call in May, Surgery Partners detailed its strategy to sell off its larger surgical hospital assets that don’t fit its core short-stay, outpatient-focused model. The company has shifted its focus and resources toward the development of de novo ASC facilities, with a number of centers in the pipeline.
Many companies and health systems are making similar strategy pivots by selling their hospitals and redirecting that capital into ASCs. St. Louis-based Ascension, Franklin, Tenn.-based Community Health Systems and Tenet, the parent company of Dallas-based United Surgical Partners International, are a few of the largest players who are becoming even more dominant in the ASC space with the pivots.
The transaction is expected to close in the coming months, subject to customary closing conditions, the release said.
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