Surgery Partners is trying to sell its way back to being a short-stay surgical company after a year in which a take-private bid from its largest shareholder collapsed and same-facility volume nearly stalled. The event that recasts the story is the pending sale of Mountain View Hospital and Idaho Falls Community Hospital to Intermountain Health. Combined facility value is about $1.15 billion. Consideration to Surgery Partners is about $795 million. Those two hospitals drifted into obstetrics, neonatology, and other acute-care work that no longer fits the ambulatory thesis. Closing still depends on physician-member votes, board approvals, and Hart-Scott-Rodino clearance.
What the second quarter actually showed is a rate story, not a volume story. Same-facility revenue rose five percent. Almost all of that lift came from revenue per case, with case counts barely higher. Adjusted earnings before interest, taxes, depreciation, and amortization slipped versus the year-ago quarter even as the company beat its own internal plan and restated full-year guidance. Commercial mix fell by roughly three and a half percentage points, and government pay took more of the book, especially inside the larger surgical hospitals. Interest still consumes most of the operating profit that survives physician partners.
The remaining platform, stripped of Idaho Falls, produced about $660 million of second-quarter revenue and about $98 million of that adjusted earnings measure. Guidance for the current year still sits between $3.35 billion and $3.45 billion of revenue. The adjusted-earnings floor remains $530 million, and those ranges still include Idaho Falls until the sale closes. The investment question is whether a cleaner short-stay mix and a modest debt paydown can re-rate a stock that already trades at a fraction of last year's failed take-private price, or whether flat cases and a heavier government mix keep the equity looking like a leveraged roll-up with a shrinking public float.