Bon Secours Affiliate HealthSpan Partners to Acquire Surgery Partners in $5.7 Billion Takeover

HealthSpan Partners, an affiliate of the Cincinnati-based health system Bon Secours Mercy Health, has reached a definitive agreement to acquire Surgery Partners in a transaction valuing the enterprise at $5.7 billion. The all-cash deal will take the publicly traded ambulatory surgery center operator private.[1][2]

Under the terms announced Monday, Surgery Partners shareholders will receive $23.50 in cash for each share they hold. The purchase price represents a premium that sent the company’s stock climbing as much as 24 percent in premarket trading, reaching $19.46 before the opening bell.[1][3]

The transaction structure includes a significant carve-out for Bain Capital Private Equity, which currently ranks as Surgery Partners' largest shareholder. Rather than cashing out its roughly 39 percent stake, the private equity firm will roll its shares into equity interests within the new acquiring entity.[1][2]

By retaining its investment, Bain Capital will remain a major partner alongside HealthSpan once the deal closes. The firm has already agreed to vote its entire block of shares in favor of the acquisition, effectively securing a massive portion of the required shareholder approval.[1][4]

Expanding the Outpatient Footprint

The acquisition merges a traditional hospital system’s resources with one of the largest short-stay surgical networks in the United States. Surgery Partners currently operates more than 200 locations spread across 30 states, encompassing ambulatory surgery centers, surgical hospitals, and urgent care facilities.[2][4]

That expansive geographic footprint is supported by a network of approximately 5,000 affiliated physicians. The facilities specialize in high-margin, high-demand medical fields, including orthopedic and spinal care, cardiology, gastroenterology, and ophthalmology.[2][4]

“Surgery Partners has built a respected national platform rooted in strong physician relationships and a commitment to quality care,” John M. Starcher Jr., president and chief executive officer of Bon Secours Mercy Health, said in a statement addressing the strategic rationale behind the purchase.[1][2]

For Bon Secours, the deal accelerates a broader industry pivot away from expensive inpatient hospital admissions. Outpatient surgery has become an increasingly critical setting for care, offering lower costs for insurers and patients while maintaining high clinical standards for routine procedures.[2][5]

Navigating Previous Buyout Attempts

The agreement with HealthSpan arrives 16 months after Surgery Partners formally rejected a different path to privatization. In June 2025, a special committee of independent directors concluded that the company was worth more as a standalone public entity than the valuation offered by Bain Capital at the time.[2][6]

During that previous evaluation period, Surgery Partners had also fielded acquisition interest from UnitedHealth Group’s Optum division and the private equity firm TPG Inc. The board opted to remain independent until the Bon Secours affiliate presented its $5.7 billion enterprise valuation.[3][6]

Eric Evans, the chief executive officer of Surgery Partners, framed the new agreement as a definitive win for investors. “We believe this transaction represents the best path forward for Surgery Partners, delivering an attractive all-cash premium to our shareholders while creating lasting benefits for our patients, physicians and other stakeholders,” Evans said.[3][4]

The negotiations were led by a special committee of independent and disinterested directors from the Surgery Partners board. Following their unanimous recommendation, the full board formally approved the definitive agreement, clearing the way for the public announcement.[1][2]

Corporate Structure and Financing

HealthSpan Partners intends to finance the massive acquisition through a combination of cash on hand and newly issued debt. The organization has already secured the necessary financing commitments, with Jefferies acting as the sole initial underwriter for the debt package.[1][4]

Despite its new ownership under an affiliate of a major Catholic health system, Surgery Partners will maintain its current operational identity. The company will keep its established name, brand, and corporate headquarters in Brentwood, Tennessee, ensuring continuity for its physician partners.[1][2]

Furthermore, the transaction explicitly dictates that Surgery Partners will remain a secular organization. The outpatient network will not be characterized or governed as a Catholic ministry entity, which avoids potential religious restrictions on the types of medical procedures its affiliated physicians can perform.[1][2]

The transaction is currently projected to close in the first quarter of 2027. Completion remains subject to standard closing conditions, including formal approval from the remaining Surgery Partners shareholders and clearance from federal antitrust regulators.[1][2]

Shifting to Private Markets

Once the acquisition is finalized, Surgery Partners will officially delist its shares from the Nasdaq stock exchange. The transition marks the end of its tenure as a publicly traded company, shifting its financial reporting and strategic planning entirely into the private markets.[1][4]

The deal underscores a persistent trend in healthcare economics, where massive hospital systems utilize their capital reserves to capture the lucrative ambulatory surgery market. By acquiring established networks, traditional health systems can retain patient volumes that would otherwise migrate to independent outpatient centers.[5][6]

Private equity’s continued involvement through Bain Capital highlights the sector's enduring appetite for healthcare services. By rolling over its equity, Bain avoids cashing out during a period of high interest rates, positioning itself to benefit from the combined entity's future growth alongside Bon Secours.[4][6]

As the 2027 closing date approaches, industry analysts will be watching closely to see if other regional health systems pursue similar large-scale acquisitions. The HealthSpan deal sets a new valuation benchmark for independent surgical networks operating in an increasingly consolidated medical landscape.[5][6]