One of the country’s largest Catholic health systems is making a big move outside the hospital. HealthSpan Partners, an affiliate of Cincinnati-based Bon Secours Mercy Health, agreed Monday to buy Surgery Partners, a Nashville-area operator of surgery centers and short-stay surgical hospitals, in an all-cash deal valued at about $5.7 billion including debt.
Surgery Partners shareholders will receive $23.50 a share, according to the companies’ announcement. That is a premium of about 49% to the stock’s last closing price before the announcement, and the shares jumped 46% on the news, Reuters reported.
The company, based in Brentwood, Tenn., runs more than 200 locations in 30 states, including ambulatory surgery centers, surgical hospitals, physician practices and urgent care sites, with about 5,000 affiliated physicians. The deal is expected to close in the first quarter of 2027.
What are the terms of the Surgery Partners deal?
Bain Capital, Surgery Partners’ largest shareholder with about 39% of the stock, will not be cashed out. Its affiliates will roll their shares into equity in the buying entity and remain a significant partner after closing. Bain also signed an agreement to vote its shares in favor of the deal.
HealthSpan Partners plans to pay with cash on hand and new debt and says it has financing commitments in place. The deal still needs approval from Surgery Partners shareholders and regulators. Once it closes, Surgery Partners will leave the Nasdaq and become a private company.
Surgery Partners will keep its name, brand and Brentwood headquarters. The companies said it will remain a secular organization, operating under a statement of common values, and will not be treated as a Catholic ministry.
The agreement ends a long search for a buyer. Surgery Partners’ board rejected a take-private offer from Bain in June 2025, deciding the company was worth more as an independent public company, Becker’s ASC Review reported.
Why is Bon Secours Mercy Health buying a surgery center chain?
More surgeries are moving out of hospitals and into outpatient settings, where procedures such as joint replacements, spine operations, cataract surgery and colonoscopies can often be done faster and at lower cost. Medicare has steadily widened the list of procedures it pays for in surgery centers, and commercial insurers have pushed in the same direction.
Surgery Partners focuses on exactly those specialties: orthopedics and spine, cardiology, gastroenterology and ophthalmology. Bon Secours Mercy Health, which runs more than 45 hospitals, would gain a national outpatient network far beyond its home markets.
“As healthcare continues to evolve, it is important to grow in ways that allow us to serve more people, in more communities and through a broader range of care settings,” said John M. Starcher Jr., the system’s president and CEO.
Dr. Wael Haidar, who leads clinical operations at Bon Secours Mercy Health and serves as president of HealthSpan Partners, said that “as more care moves beyond the hospital setting, patients are looking for high-quality care that fits more seamlessly into their lives.”
Surgery Partners CEO Eric Evans called the deal “the best path forward” for the company, saying it delivers “an attractive all-cash premium to our shareholders while creating lasting benefits for our patients, physicians and other stakeholders.”
Is this part of a bigger trend?
Yes. Nonprofit health systems are increasingly buying outpatient businesses that were once the domain of private equity and for-profit chains. Earlier this year Ascension, another large Catholic system, bought the surgery center operator AmSurg for $3.9 billion, Reuters noted.
The deal also adds to a busy month for health care consolidation. This month alone, Healthcare News Center has covered Kaiser Permanente’s Risant Health signing INTEGRIS and Cencora’s $2.4 billion deal for American Oncology Network.
Will regulators approve it?
Analysts do not expect a major antitrust fight. Mizuho analyst Ann Hynes told Reuters there is some market overlap in Ohio and Kentucky, but the deal “would substantially broaden the system’s national footprint, so we do not expect meaningful FTC antitrust risk issues.” She added that Bain keeping its stake should help the deal close.
Surgery Partners reported $3.31 billion in revenue in 2025. Its negotiations were led by a special committee of independent directors, and its board approved the agreement on the committee’s unanimous recommendation.
What does it mean for patients and physicians?
For now, nothing changes at Surgery Partners’ centers and hospitals. The companies say operations, the brand and physician partnerships will stay in place. Over time, patients in Bon Secours Mercy Health markets could see closer ties between the system’s hospitals and nearby surgery centers, which can mean more scheduling options for outpatient procedures.
For investors and physician partners, the bigger signal is that outpatient surgery remains one of the most sought-after businesses in health care, and that nonprofit systems are willing to pay up to own it.
Key Takeaways
- HealthSpan Partners, a Bon Secours Mercy Health affiliate, agreed to buy Surgery Partners in an all-cash deal valued at about $5.7 billion including debt.
- Shareholders other than Bain Capital get $23.50 a share. Bain, which owns about 39%, will roll its stake over and stay a significant partner.
- Surgery Partners runs more than 200 sites in 30 states with about 5,000 affiliated physicians and will keep its name and Brentwood, Tenn., headquarters.
- The deal is expected to close in the first quarter of 2027, pending shareholder and regulatory approvals.
Frequently Asked Questions
Who is buying Surgery Partners?
HealthSpan Partners, a contractual affiliate and supporting organization of Cincinnati-based Bon Secours Mercy Health, agreed on Oct. 26, 2026, to acquire Surgery Partners in an all-cash deal valued at about $5.7 billion including debt.
How much will Surgery Partners shareholders receive?
Shareholders other than affiliates of Bain Capital will receive $23.50 in cash per share. Bain Capital, which owns about 39% of the company, will roll its shares into the new ownership group.
When will the Surgery Partners acquisition close?
The companies expect the deal to close in the first quarter of 2027, subject to approval by Surgery Partners shareholders, regulatory approvals and other customary conditions.
Will Surgery Partners become a Catholic organization?
No. The companies said Surgery Partners will remain a secular organization that operates under a statement of common values and will not be characterized as a Catholic ministry. It will keep its name, brand and headquarters.
