Intermountain increases stake in two Idaho hospital systems as part of $795M deal
Nonprofit hospital system Intermountain Health is absorbing—at least in part—two hospitals in Idaho, previously co-owned by the private equity-backed Surgery Partners. Further, as part of the $795 million deal, Utah-based Intermountain will also have a stake in a number of clinics associated with Mountain View Hospital and Idaho Falls Community Hospital.
The deal is valued at nearly $1.2 billion, which represents the assumed market price of the two hospitals and clinics. Notably, the deal means Intermountain will take on the stake Surgery Partners had in each of the hospital systems, leaving it as the sole owner of Idaho Falls Community Hospital. However, physician ownership of Mountain View Hospital will not change, according to an announcement outlining the terms of the agreement.
In the statement, Surgery Partners said the buyout will close “in the coming months, subject to the foregoing approvals.” It’s unclear what objection regulators could have, as Intermountain already has a stake in both the hospitals and the clinics, where it has been a minority owner for a few years.
A strategic shift
Idaho Falls Community Hospital opened in 2019 and operates an 88-bed facility. Meanwhile, the older Mountain View has 38 beds at its core hospital. Since its surgical hub opened in 2022, it has evolved into a “leading surgical hub,” where it also houses a Level III NICU, the announcement from Surgery Partners noted.
Intermountain purchased its minority investments in both facilities back in 2023. With the expanded stake, the hospitals promise improved care coordination and access, made possible by the sheer size of Intermountain.
The hospital group has its history rooted in a donation of 15 hospitals made by the Church of Jesus Christ of Latter-day Saints in 1975. From there, an independent nonprofit entity was formed, which currently operates 34 hospitals in six states. The system also manages more than 400 clinics and medical groups, employing more than 4,600 physicians.
“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,” Eric Evans, Chief Executive Officer of Surgery Partners, said. “Once complete, this will further sharpen our strategic focus and help support long-term shareholder value.”
As for what that means, Evans said the transaction “represents the largest step forward in our portfolio optimization strategy to date, simplifying our go forward operations, and positioning us to accelerate momentum in the rapidly growing, high-value ambulatory surgery center space.”
“We are confident that Intermountain Health is the best natural owner to continue to advance the mission that Mountain View physician partners started well over two decades ago and to build on their strong legacy of exceptional patient care,” he added.
In addition to customary regulatory oversight, the deal is also contingent upon the physician owners of Mountain View signing on, agreeing to Surgery Partners’ stake being transferred to Intermountain.
All could be finalized before the end of the year.
Chad is an award-winning writer and editor with over 15 years of experience working in media. He has a decade-long professional background in healthcare, working as a writer and in public relations.