Intermountain Health has closed its deal to acquire interests in two Idaho hospitals, their real estate and their affiliated clinics, according to announcements from the sellers.
Intermountain had jointly owned the 88-bed Idaho Falls Community Hospital and the 38-bed Mountain View Hospital since 2023 alongside healthcare services company Surgery Partners and a group of physicians. It is now the sole owner of the former facility and controls a larger share of the latter, per the announcement from Surgery Partners.
Surgery Partners said it received $797 million in gross proceeds and $587 million in net cash proceeds, with the deal valuing the facilities at roughly $1.15 billion. Physician ownership in Mountain View Hospital remains unchanged.
The companies had announced their deal just a couple of months ago (see that story below), with the hospital's CEO saying the deal "will bring positive benefits to our patients and our teams, and there will be few noticeable changes on the ground."
Surgery Partners said the deal better positions the company as a purely short-stay surgical provider, eliminating some service lines and reducing its exposure to Medicaid.
"Our updated full-year 2026 outlook underscores the benefit of our portfolio optimization actions, with this transaction expected to be accretive to adjusted earnings growth on an annual basis, in addition to reducing our balance sheet leverage and improving free cash flow conversion," CEO Eric Evans said in the deal close announcement. "We are encouraged by our recent momentum and remain confident in our long-term strategy and ability to deliver sustained value for stockholders."
Additionally, Medical Properties Trust (MPT) said it also closed a $413 million deal with Intermountain regarding the two hospitals' real estate. That deal brought the real estate investment trust $371 million in cash proceeds, the majority of which it plans to use to reduce its debt.
July 27
Intermountain Health acquiring interests in 2 Idaho hospitals for $795M
Intermountain Health is picking up its partner’s share in two Idaho hospitals and over half a dozen affiliated clinics for about $795 million, the organizations announced Friday.
The deal values the facilities at about $1.15 billion and is expected to close “in the coming months, subject to the foregoing approvals,” according to the investor announcement from Surgery Partners, which has jointly owned the facilities with Intermountain alongside a group of physicians since 2023.
If closed, Intermountain would become the sole owner of Idaho Falls Community Hospital, an 88-bed facility, and share a greater slice of the physician-owned Mountain View Hospital, which has 38 beds.
The former opened in 2019 to add scalable acute care to the latter, which since 2002 has “grown into a leading surgical hub” sporting a Level III NICU, per a description of the businesses included in Surgery Partners’ announcement. The hospitals and their clinics employ more than 2,300, including 150-plus physicians.
In 2023, when Intermountain secured its minority investments, the abutting hospitals said their relationship with Intermountain would increase local patients’ access to specialists and a transfer to higher acuity care, while also noting Intermountain’s “vast system of resources” and strategic guidance.
“Intermountain Health is already an investor in both hospitals and has deep roots in our region. They believe in our vision and our teams, and they want to empower us to continue delivering the personalized care our organizations are known for,” James Adamson, CEO of the two hospitals, said in a statement. “We believe this growing partnership will bring positive benefits to our patients and our teams, and there will be few noticeable changes on the ground."
Statements from the partners specify that operations at the facilities will remain separate from Intermountain and remain locally managed. No changes are planned to current employment arrangements, including compensation, they said.
Eric Evans, CEO of Surgery Partners, which reported $3.3 billion in revenue across 2025, painted the deal as a milestone in his company’s portfolio optimization push. The company, whose surgical services and related care business spans more than 200 locations in 30 states, aims to streamline operations and prioritize its “rapidly growing, high-value ambulatory surgery center space,” he said.
“While our Idaho Falls partnerships have been a large and successful part of our Company’s growth story, these unique facilities are best positioned for their next chapter of growth with an outstanding regional health system like Intermountain,” he said. “Once complete, this will further sharpen our strategic focus and help support long-term shareholder value.”
Nonprofit Intermountain Health, based in Utah, has a six-state footprint of 34 hospitals and about 400 clinics. It reported $18.5 billion of total operating revenue last year. It currently runs one acute care hospital in Idaho: Cassia Regional Hospital, a 25-bed critical access hospital in Burley.
Friday’s announcement is the second bout of recent dealmaking for the system, which last Tuesday shared plans to bring three of its Denver-area hospitals into an eight-hospital joint venture with AdventHealth. That proposed entity would be managed, and likely majority-owned, by AdventHealth.