Key Takeaways
- • Bon Secours Mercy Health, a Catholic nonprofit health system, is acquiring a majority stake in Surgery Partners in a take-private transaction valuing the company at $5.7 billion, according to the announcement made Monday morning.
- • Affiliate HealthSpan Partners will buy the remaining public shares for cash at $23.50 per share, while Bain Capital Private Equity affiliates, which control about 39% of Surgery Partners, will retain and roll over their stake.
- • The deal is expected to close in the first quarter of the following year, subject to regulatory and other approvals, and would create what the parties describe as one of the largest outpatient surgical care platforms in the country.
- • The offer is below the $25.75 per share Bain Capital proposed in January 2025, an offer Surgery Partners rejected a few months later.
- • Surgery Partners reported $3.31 billion in 2025 revenue and $0.47 adjusted earnings per share, and the company is streamlining toward a purely short-stay surgical model with less Medicaid exposure.
Summary
Bon Secours Mercy Health is acquiring a majority share of Surgery Partners in a take-private transaction valuing the healthcare services company at $5.7 billion, the organizations announced Monday. The transaction is expected to close in the first quarter of the following year, pending approvals. Under the terms, HealthSpan Partners, an affiliate of Bon Secours, will purchase the remaining publicly held shares for cash at $23.50 per share. Affiliates of Bain Capital Private Equity, which control about 39% of the public company, will retain and roll over their shares.
Surgery Partners operates a short-stay surgical platform including ambulatory surgery centers and surgical hospitals, with about 5,000 affiliated physicians across 30 states and more than 200 locations. The company reported $3.31 billion in revenue during 2025 and $0.47 adjusted earnings per share. It has been public since 2015, and its 2017 merger made it the largest standalone, independent surgical facilities operator at the time. Bain Capital made an offer in January 2025 to acquire the shares it did not own for $25.75 apiece, roughly a $6.7 billion enterprise valuation, but that offer was rejected a few months later. Surgery Partners has also been divesting some acute care holdings in recent months, a move leadership said would position it as a purely short-stay surgical provider while limiting Medicaid exposure.
Bon Secours Mercy Health is a Catholic nonprofit with 47 hospitals, more than 1,200 care sites and nearly 60,000 employees. It reported just under $14 billion in total operating revenue through 2025, $324 million in recurring operating income (a 2.3% recurring operating margin), and a $1.1 billion bottom line. Its holdings include a 41% stake in revenue cycle management company Ensemble Health Partners, which received $670.8 million in cash from a summer strategic recapitalization with a new private equity investor, according to recent financial statements. HealthSpan is financing the purchase with a combination of cash on hand and newly secured debt. Upon closing, the parties plan to keep Surgery Partners' operations, brand and headquarters in place.
The deal reflects health systems' growing investment in ambulatory care networks, where demand is expected to rise as consumers prioritize lower-cost care settings and policy changes, including the wind-down of Medicare's inpatient-only list, push care outside hospitals. Bon Secours President of Clinical Operations Wael Haidar, M.D., said Surgery Partners' patient-centered approach aligns with the system's mission. The closest precedent is Ascension's $3.9 billion acquisition of AMSURG, an ambulatory surgery management company with over 300 locations, which closed over the summer. Ascension CEO Eduardo Conrado described that deal as a way to strengthen existing markets and form new partnerships beyond its prior footprint.
Surgery Partners operates a short-stay surgical platform including ambulatory surgery centers and surgical hospitals, with about 5,000 affiliated physicians across 30 states and more than 200 locations. The company reported $3.31 billion in revenue during 2025 and $0.47 adjusted earnings per share. It has been public since 2015, and its 2017 merger made it the largest standalone, independent surgical facilities operator at the time. Bain Capital made an offer in January 2025 to acquire the shares it did not own for $25.75 apiece, roughly a $6.7 billion enterprise valuation, but that offer was rejected a few months later. Surgery Partners has also been divesting some acute care holdings in recent months, a move leadership said would position it as a purely short-stay surgical provider while limiting Medicaid exposure.
Bon Secours Mercy Health is a Catholic nonprofit with 47 hospitals, more than 1,200 care sites and nearly 60,000 employees. It reported just under $14 billion in total operating revenue through 2025, $324 million in recurring operating income (a 2.3% recurring operating margin), and a $1.1 billion bottom line. Its holdings include a 41% stake in revenue cycle management company Ensemble Health Partners, which received $670.8 million in cash from a summer strategic recapitalization with a new private equity investor, according to recent financial statements. HealthSpan is financing the purchase with a combination of cash on hand and newly secured debt. Upon closing, the parties plan to keep Surgery Partners' operations, brand and headquarters in place.
The deal reflects health systems' growing investment in ambulatory care networks, where demand is expected to rise as consumers prioritize lower-cost care settings and policy changes, including the wind-down of Medicare's inpatient-only list, push care outside hospitals. Bon Secours President of Clinical Operations Wael Haidar, M.D., said Surgery Partners' patient-centered approach aligns with the system's mission. The closest precedent is Ascension's $3.9 billion acquisition of AMSURG, an ambulatory surgery management company with over 300 locations, which closed over the summer. Ascension CEO Eduardo Conrado described that deal as a way to strengthen existing markets and form new partnerships beyond its prior footprint.
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