Surgery Partners, Inc. (NASDAQ: SGRY)

Surgery Partners, Inc. operates a national network of surgical facilities and ancillary services, focusing on providing high-quality, cost-effective solutions for surgical and related ancillary care. The company is one of the largest and fastest-growing surgical services businesses in the United States, with over 200 locations across 30 states. These locations include ambulatory surgery centers (ASCs), short-stay surgical hospitals, and multi-specialty physician practices. The company's patient services generated approximately $3.2 billion in revenue during 2025, highlighting its significant presence in the healthcare sector.

Surgery Partners generates revenue primarily through facility fees related to healthcare services performed in its surgical facilities. These fees are included in patient service revenues and vary depending on the type of service provided. The company also earns management fees from non-consolidated surgical facilities for management services provided. Revenue is derived from a mix of government and private insurance sources, with private insurance accounting for approximately 52.3% of total patient service revenues in 2025, followed by government insurance at 42.8%, and self-pay at 2.7%. The company's customer base includes patients seeking non-emergency surgical procedures across various specialties, such as orthopedics, pain management, ophthalmology, gastroenterology, and general surgery.

• Surgical Facilities: This segment includes the operation of ASCs, surgical hospitals, anesthesia services, urgent care facilities, and multi-specialty physician practices. The surgical facilities primarily provide non-emergency surgical procedures across many specialties. As of December 31, 2025, Surgery Partners owned or operated 176 surgical facilities, including 157 ASCs and 19 licensed surgical hospitals. These facilities cater to patients requiring planned surgical procedures on an outpatient basis or those with shorter recovery times. The company provides a full range of financial, marketing, and operating services to each surgical facility, ensuring efficient management and high-quality care.

Surgery Partners holds a strong position within the healthcare industry, competing with several large national companies such as HCA Healthcare, Inc., AMSURG Corp., Tenet Healthcare Corporation, and Optum, Inc. The company's competitive advantages include its national prominence, scale, and reputation, which attract physicians and patients. Additionally, Surgery Partners emphasizes the high quality of surgical care, cost advantages over local competitors, and high patient satisfaction with its surgical facilities. The company's strategic relationships with payors, health care systems, and other health care providers further enhance its ability to attract physicians and access favorable private insurance contracts for its surgical facilities.

The general customer base for Surgery Partners includes patients seeking non-emergency surgical procedures across various specialties. The company's facilities attract patients based on the quality of care, the specialties and reputations of the physicians who operate in their surgical facilities, participation in managed care programs, ease of access, and convenient scheduling and registration procedures. Surgery Partners' strategic relationships with payors, health care systems, and other health care providers also play a crucial role in attracting and retaining customers.