Intermountain Health Completes $795 Million Acquisition of Idaho Hospital Interests

Intermountain Health has completed its acquisition of ownership interests in two Idaho hospitals and their affiliated clinics, expanding the nonprofit health system’s presence in the Idaho Falls market.

The transaction gives Intermountain sole ownership of Idaho Falls Community Hospital and a larger ownership stake in physician-owned Mountain View Hospital. The deal with Surgery Partners generated approximately $797 million in gross proceeds for the seller and valued the facilities at about $1.15 billion.

• Intermountain Health has closed its acquisition of Surgery Partners’ interests in two Idaho hospitals.
• The transaction generated approximately $797 million in gross proceeds for Surgery Partners.
• Idaho Falls Community Hospital has 88 beds, while Mountain View Hospital has 38 beds.
• Intermountain is now the sole owner of Idaho Falls Community Hospital and holds a larger share of Mountain View Hospital.
• Physician ownership of Mountain View Hospital remains unchanged.
• Medical Properties Trust separately completed a $413 million transaction involving the hospitals’ real estate.
• The deals strengthen Intermountain’s presence in Idaho while allowing Surgery Partners to focus more heavily on outpatient surgical care.

Two Idaho Hospitals Change Ownership Structure

The transaction involves Idaho Falls Community Hospital and Mountain View Hospital, which have been jointly owned by Intermountain, Surgery Partners and physician partners since 2023.

Idaho Falls Community Hospital is an 88-bed facility, while Mountain View Hospital has 38 beds and remains physician-owned in part. The hospitals and their affiliated clinics employ more than 2,300 people, including more than 150 physicians.

Under the completed transaction, Intermountain now owns Idaho Falls Community Hospital outright. It has also increased its ownership interest in Mountain View Hospital, while physician ownership in that facility remains unchanged.

Surgery Partners Receives Nearly $800 Million

Surgery Partners received approximately $797 million in gross proceeds from the transaction, including $587 million in net cash proceeds after adjustments.

The transaction values the combined hospital facilities at roughly $1.15 billion. Surgery Partners said the proceeds will primarily be used to reduce debt and improve its balance sheet.

The company said the transaction is expected to reduce its leverage by approximately 30 basis points from the 4.4x level reported at the end of the second quarter.

The sale also removes several hospital-based service lines from Surgery Partners’ portfolio, including obstetrics, neonatology and inpatient pediatrics.

Surgery Partners Narrows Its Focus on Surgical Care

For Surgery Partners, the Idaho transaction is part of a broader effort to streamline its portfolio around ambulatory and short-stay surgical services.

Following the deal, the company expects its Medicaid payer mix to fall substantially and its exposure to non-surgical admissions to decline. The company also expects to eliminate its retail and compounding pharmacy operations and reduce its intensive care footprint.

Surgery Partners reported $3.3 billion in revenue across 2025 and operates surgical services and related facilities across the U.S.

Hospital Operations to Remain Locally Managed

Despite the ownership changes, the hospitals are expected to maintain their local operating structure.

When the transaction was first announced, the organizations said the facilities would continue operating separately from Intermountain and remain locally managed. They also said there were no planned changes to existing employment arrangements or compensation.

The hospitals’ leadership had previously described the expanded relationship with Intermountain as an extension of an existing partnership rather than a major operational restructuring.

Intermountain had already been an investor in both facilities since 2023.

Intermountain Expands Its Idaho Footprint

The transaction gives Intermountain a substantially larger presence in Idaho.

The Utah-based nonprofit operates across six states, with 34 hospitals and approximately 400 clinics. Before the transaction, its Idaho acute-care presence included Cassia Regional Hospital, a 25-bed critical access hospital in Burley.

The Idaho Falls acquisition adds two substantially larger facilities to its portfolio and expands the system’s access to hospital and specialty services in the region.

The deal is also part of a broader period of expansion for Intermountain. In September, the system announced plans for a Denver-area joint venture with AdventHealth involving eight hospitals and affiliated facilities.

Real Estate Transaction Adds Another $413 Million

The hospital acquisition was accompanied by a separate transaction involving the facilities’ real estate.

Medical Properties Trust said it completed a $413 million transaction with Intermountain covering the real estate associated with the two hospitals. MPT received approximately $371 million in cash proceeds and said most of the money would be used to reduce debt.

Together, the operating-ownership transaction and the real estate deal represent more than $1.2 billion in disclosed transaction consideration connected to the Idaho Falls facilities in 2026.

Deal Marks Another Major Hospital M&A Transaction

The Idaho transaction comes amid continued activity in hospital mergers and acquisitions across the U.S.

Kaufman Hall recorded 18 new hospital transaction announcements during the second quarter of 2026, up from eight during the same period a year earlier. The quarter included three transactions involving organizations with more than $1 billion in annual revenue.

Intermountain’s acquisition adds to that activity while illustrating a different type of transaction: an established health-system partnership evolving into greater ownership rather than a completely new relationship.

For Intermountain, the completed deal expands its Idaho operations. For Surgery Partners, the sale provides capital to reduce leverage and further concentrate its business around outpatient and ambulatory surgical care.

Intermountain Health Completes Idaho Transaction

Intermountain Health was already a partner in the two facilities, having held ownership interests alongside Surgery Partners and physicians since 2023. Following the completed transaction, Intermountain Health has increased its control of the hospital operations. Physician ownership of Mountain View Hospital remains unchanged.

Intermountain Health and the $795 Million Deal

The transaction was originally announced in July with approximately $795 million in consideration to Surgery Partners. At closing, Surgery Partners reported $797 million in gross proceeds and $587 million in net cash proceeds, subject to customary post-closing adjustments. The combined facilities were valued at approximately $1.15 billion.

Intermountain Health said the facilities will retain their current brands and continue to be locally managed by existing leadership teams and physicians. The health system has described the investment as part of its commitment to supporting healthcare access in the region.

Intermountain Health Expands Its Regional Footprint

The completed acquisition gives Intermountain Health greater ownership of an established healthcare network in Idaho. The organization already operates a broad nonprofit health system across the western United States, making the Idaho transaction part of its wider regional healthcare presence.

What the Deal Means for Surgery Partners

For Surgery Partners, the transaction represents a shift toward its short-stay surgical business. The company said proceeds from the sale will primarily be used to reduce debt, while its updated 2026 outlook reflects the removal of the Idaho Falls facilities from future results.