Surgery Partners sold two hospitals. The price was $797 million. It gave up babies and drugstores to do it.

Surgery Partners runs surgery centers. It has more than 200 sites. [C8][C8] News release, About Surgery PartnersSurgery Partners is one of the largest and fastest growing surgical services businesses in the country, with more than 200 locations in 30 statesSurgery Partners, Inc. press release on the closing of the Idaho Falls sale, filed as Exhibit 99.2 to Form 8-K, September 17, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1638833/000163883326000085/exhibit992idfallsclosingpr.htm

About 131 million Surgery Partners shares were out. That count is as of mid-2026. [C9][C9] Form 10-Q, cover pagethere were 130,918,260 shares of the registrant’s common stock outstanding.Surgery Partners, Inc. quarterly report on Form 10-Q for the period ended June 30, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1638833/000163883326000077/sgry-20260630.htm

Both sit in one small Idaho town. One is Mountain View. The other is Idaho Falls Community Hospital. [C10][C10] Form 8-K, Item 2.01Surgery Partners, Inc. (the "Company"), through certain of its subsi diaries, completed the disposition of Moun tain View Hospital, LLC (“MVH”) and Idaho Falls Community Hospital, LLC (“IFCH”)Surgery Partners, Inc. Form 8-K, filed September 17, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1638833/000163883326000085/sgry-20260914.htm

The two had 126 beds and over 150 doctors. They delivered babies. They ran a newborn intensive care unit too. [C11][C11] News release, About Idaho Falls FacilitiesCombined, the locations employ over 150 physicians and include 126 beds with a breadth of services across nine surgical specialties and a diverse range of additional service lines, including oncology, emergency department and ICU services, and neonatology.Surgery Partners, Inc. press release on the closing of the Idaho Falls sale, filed as Exhibit 99.2 to Form 8-K, September 17, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1638833/000163883326000085/exhibit992idfallsclosingpr.htm

Intermountain is the buyer. It runs 34 hospitals and 400 clinics. [C12][C12] News release, About Intermountain HealthIntermountain Health is a nonprofit system of 34 hospitals, approximately 400 clinics, medical groups with some 4,600 employed physicians and advanced care providersSurgery Partners, Inc. press release on the closing of the Idaho Falls sale, filed as Exhibit 99.2 to Form 8-K, September 17, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1638833/000163883326000085/exhibit992idfallsclosingpr.htm

The sale closed on September 14. The buyer now owns both hospitals. [C3][C3] Form 8-K, Item 2.01The Company received aggregate consideration of approximately $796.6 million, consisting of consideration for the Disposed Business and termination of the Company's management agreement with MVH.Surgery Partners, Inc. Form 8-K, filed September 17, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1638833/000163883326000085/sgry-20260914.htm

Surgery Partners got $797 million up front. It kept $587 million after costs. Most of it pays down debt. [C1][C1] News release, September 17, 2026Surgery Partners received $797 million in gross proceeds and $587 million in net cash proceeds at closing, subject to customary post-closing adjustments.Surgery Partners, Inc. press release on the closing of the Idaho Falls sale, filed as Exhibit 99.2 to Form 8-K, September 17, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1638833/000163883326000085/exhibit992idfallsclosingpr.htm [C13][C13] Form 8-K, Item 2.01The Company intends to use the proceeds primarily to pay down debt.Surgery Partners, Inc. Form 8-K, filed September 17, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1638833/000163883326000085/sgry-20260914.htm

This was not a side deal. Surgery Partners says the sale makes it a surgery-only company. Nothing else. [C14][C14] News release, quote from CEO Eric EvansWith the completion of this important transaction, Surgery Partners enters a new chapter better positioned for long-term growth as a pure-play short-stay surgical providerSurgery Partners, Inc. press release on the closing of the Idaho Falls sale, filed as Exhibit 99.2 to Form 8-K, September 17, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1638833/000163883326000085/exhibit992idfallsclosingpr.htm

The company spelled out what it is giving up. Half its intensive care beds, gone. Most emergency room visits, gone. [C4][C4] News release, Operational Highlights50% reduction in intensive care beds and majority reduction in total emergency department visits.Surgery Partners, Inc. press release on the closing of the Idaho Falls sale, filed as Exhibit 99.2 to Form 8-K, September 17, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1638833/000163883326000085/exhibit992idfallsclosingpr.htm

All of its baby care, gone. All of its children's inpatient care, gone. All of its pharmacy business, gone. [C2][C2] News release, Operational Highlights100% elimination of neonatology and obstetrics service lines.Surgery Partners, Inc. press release on the closing of the Idaho Falls sale, filed as Exhibit 99.2 to Form 8-K, September 17, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1638833/000163883326000085/exhibit992idfallsclosingpr.htm [C5][C5] News release, Operational Highlights100% reduction in retail and compounding pharmacy service lines.Surgery Partners, Inc. press release on the closing of the Idaho Falls sale, filed as Exhibit 99.2 to Form 8-K, September 17, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1638833/000163883326000085/exhibit992idfallsclosingpr.htm [C15][C15] News release, Operational Highlights100% elimination of inpatient pediatrics businesses.Surgery Partners, Inc. press release on the closing of the Idaho Falls sale, filed as Exhibit 99.2 to Form 8-K, September 17, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1638833/000163883326000085/exhibit992idfallsclosingpr.htm

Money from government programs shrinks too. Medicaid drops to under 2% of revenue, about half of what it was. [C16][C16] News release, Operational Highlights50% reduction in Medicaid payor mix, with new annualized mix expected to be under 2% of revenue.Surgery Partners, Inc. press release on the closing of the Idaho Falls sale, filed as Exhibit 99.2 to Form 8-K, September 17, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1638833/000163883326000085/exhibit992idfallsclosingpr.htm

Despite the size of the sale, the debt math barely moves. Leverage, or debt against earnings, was 4.4 times before. It only improves by 30 hundredths of a point. [C6][C6] News release, Financial HighlightsBalance sheet leverage, as calculated under the Company’s credit agreement, is expected to improve by 30bps, from 4.4x at the end of Q2 2026.Surgery Partners, Inc. press release on the closing of the Idaho Falls sale, filed as Exhibit 99.2 to Form 8-K, September 17, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1638833/000163883326000085/exhibit992idfallsclosingpr.htm

That is a small move for a firm that just got $587 million. It hints at how much debt Surgery Partners carries. [C6][C6] News release, Financial HighlightsBalance sheet leverage, as calculated under the Company’s credit agreement, is expected to improve by 30bps, from 4.4x at the end of Q2 2026.Surgery Partners, Inc. press release on the closing of the Idaho Falls sale, filed as Exhibit 99.2 to Form 8-K, September 17, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1638833/000163883326000085/exhibit992idfallsclosingpr.htm

Its outlook for the rest of the year went up that same day. Without the Idaho hospitals, it now sees at least $414 million of profit. [C17][C17] News release, Updated 2026 GuidanceOn a pro forma basis, excluding the Idaho Falls Facilities for the full-year 2026, revenue guidance is in the range of $2.60 billion to $2.67 billion and Adjusted EBITDA guidance is at least $414 million.Surgery Partners, Inc. press release on the closing of the Idaho Falls sale, filed as Exhibit 99.2 to Form 8-K, September 17, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1638833/000163883326000085/exhibit992idfallsclosingpr.htm

The filing does not say the total debt Surgery Partners carries. It only gives the ratio. A reader cannot check the dollar figure. [C6][C6] News release, Financial HighlightsBalance sheet leverage, as calculated under the Company’s credit agreement, is expected to improve by 30bps, from 4.4x at the end of Q2 2026.Surgery Partners, Inc. press release on the closing of the Idaho Falls sale, filed as Exhibit 99.2 to Form 8-K, September 17, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1638833/000163883326000085/exhibit992idfallsclosingpr.htm

Nobody knows yet if cutting these helps profit. That is what leaders expect, not what happened. [C17][C17] News release, Updated 2026 GuidanceOn a pro forma basis, excluding the Idaho Falls Facilities for the full-year 2026, revenue guidance is in the range of $2.60 billion to $2.67 billion and Adjusted EBITDA guidance is at least $414 million.Surgery Partners, Inc. press release on the closing of the Idaho Falls sale, filed as Exhibit 99.2 to Form 8-K, September 17, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1638833/000163883326000085/exhibit992idfallsclosingpr.htm

What happens to those patients and staff is unclear. [C2][C2] News release, Operational Highlights100% elimination of neonatology and obstetrics service lines.Surgery Partners, Inc. press release on the closing of the Idaho Falls sale, filed as Exhibit 99.2 to Form 8-K, September 17, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1638833/000163883326000085/exhibit992idfallsclosingpr.htm