Surgery Partners — Business Overview
What does Surgery Partners do?
Surgery Partners owns and operates a network of outpatient surgical facilities across the United States. The company runs more than 200 locations in 30 states, including ambulatory surgery centers (ASCs) (free-standing facilities where patients have planned surgery and go home the same day), short-stay surgical hospitals (licensed hospitals focused on elective, less complex procedures), and multi-specialty physician practices. As of December 31, 2025, the company operated 176 surgical facilities — 157 ASCs and 19 surgical hospitals — and employed approximately 16,000 people.
The company operates as a single business segment called Surgical Facilities. Common procedure types include orthopedics and pain management, ophthalmology, gastroenterology (GI), and general surgery. These are planned, non-emergency procedures — the kind where patients schedule in advance and typically go home the same day. Surgery Partners generated approximately $3.2 billion in revenue from patient services in 2025.
How does Surgery Partners make money?
The primary revenue source is facility fees charged for each surgical procedure performed at its locations. When a patient has surgery at one of its facilities, Surgery Partners bills for the use of the operating room, recovery room, nursing staff, equipment, and supplies. The surgeon and anesthesiologist bill separately — Surgery Partners does not capture those professional fees. Revenue is collected from a mix of private insurers (52.3% of patient service revenue in 2025), government programs like Medicare and Medicaid (42.8%), self-pay patients (2.7%), and other sources (2.2%).
A secondary revenue stream comes from management fees. Surgery Partners does not always hold a majority ownership stake in every facility it operates. For the facilities it manages but does not fully consolidate, it earns a management fee — typically a percentage of that facility's revenue. Of its 176 surgical facilities, it held majority ownership in 90 and consolidated 121 for financial reporting purposes.
Reimbursement rates from government programs are set by federal rules and updated annually. Medicare pays ASCs at rates tied to the Outpatient Prospective Payment System (a standardized government pricing schedule), which increased by 2.6% for 2025. This means a meaningful chunk of Surgery Partners' revenue is effectively set by regulators, not negotiated freely — a key feature of healthcare economics.
What market does Surgery Partners operate in?
Surgery Partners competes in the U.S. outpatient surgical facility market, which it estimates at over $90 billion in annual revenue today and potentially $150 billion when including procedures that could migrate out of hospitals. That broader figure includes roughly $55 billion currently done in hospital outpatient departments, $45 billion in ASCs, and approximately $50 billion in inpatient surgical cases that could theoretically shift to outpatient settings.
The secular trend strongly favors ASCs over hospitals. Payers (both private insurers and the government) actively encourage moving procedures to ASCs because they cost less than hospital settings. Surgery Partners estimates ASC procedure volumes will grow roughly 6% annually over the next few years, compared to about 2% growth in hospital outpatient departments and a 2% decline in traditional inpatient procedures. An aging population and advances in medical technology enabling more procedures to be done on an outpatient basis further support this shift.
Regulatory and policy risk is a real headwind. The expiration of Affordable Care Act subsidies at the end of 2025 is expected to increase the uninsured population, which could reduce patient volumes or shift patients from higher-paying private insurance toward lower-paying government programs. The "One Big Beautiful Bill Act" passed in July 2025 also tightened Medicaid eligibility, which the company acknowledges could negatively affect financial performance.
Who are Surgery Partners' main competitors?
The outpatient surgical facility market includes both large national operators and local hospital systems. Named competitors include HCA Healthcare, AMSURG Corp. (part of Envision Healthcare), Tenet Healthcare, and Optum (the health services arm of UnitedHealth Group). Surgery Partners also competes with independent local hospitals and physician groups, as well as a growing trend of physicians performing procedures in office-based settings rather than dedicated surgical facilities.
Surgery Partners positions itself as the partner of choice for independent physicians. Its pitch to doctors emphasizes convenient scheduling, no preemption by emergency cases (a common frustration in hospital settings), efficient turnaround between cases, and the ability to co-own a stake in the facility. Physician ownership in the facilities is a core part of the model — it aligns incentives and helps attract and retain the surgical volume that drives revenue.
The industry is a mix of national scale players and fragmented local operators, which gives Surgery Partners room to grow through acquisitions. The company runs a dedicated acquisition team and continuously evaluates deals, targeting facilities with strong physician partners, attractive specialty mixes, and room for profitability improvement.
Where does Surgery Partners operate?
Surgery Partners operates exclusively in the United States, spread across 30 states. The filing does not break out revenue by specific state or region, but the breadth of the footprint — more than 200 locations — suggests no single market dominates. The company both develops new facilities and acquires existing ones, meaning it both builds and operates in these geographies.
There is no international exposure disclosed. This is a purely domestic U.S. business, which means no foreign currency risk or geopolitical exposure from overseas operations. The primary geographic risk is regulatory and policy-driven at the federal and state level — for example, 21 of the 30 states where Surgery Partners operates have certificate of need laws (state regulations that require government approval before building or expanding healthcare facilities), which can limit or slow expansion in those markets.