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Here are 1-3 brief analogies for Surgery Partners (SGRY):

• HCA Healthcare for surgical facilities.

• Like a specialized version of a major hospital operator such as Tenet Healthcare, but exclusively for surgeries and short-stay procedures.

• Universal Health Services (UHS), but focused solely on surgical hospitals and ambulatory surgical centers.

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• Surgical Care Services: Provides a comprehensive range of surgical procedures across various medical specialties in its network of surgical hospitals and ambulatory surgery centers.
• Ancillary Healthcare Services: Offers complementary medical services such as diagnostic imaging, urgent care, and physician practice management that support and integrate with its surgical facilities.

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Surgery Partners (SGRY) primarily sells its healthcare services to individuals.

The company serves individuals falling into the following categories, largely distinguished by their primary method of payment:

• Patients with Commercial Insurance: These are individuals covered by private health insurance plans (e.g., UnitedHealthcare, Anthem, Aetna, Cigna, Humana). Surgery Partners bills these insurance companies for the majority of the cost of services provided, with the patients responsible for co-payments, deductibles, and co-insurance.
• Patients with Government Insurance: This category includes individuals covered by government-sponsored healthcare programs such as Medicare (primarily for the elderly and some disabled individuals) and Medicaid (for low-income individuals and families). Surgery Partners bills these government programs for services rendered.
• Self-Pay Patients: These are individuals who either do not have health insurance or choose not to use it for specific services. They are directly responsible for paying the full cost of the healthcare services they receive from Surgery Partners' facilities.

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Eric Evans, Chief Executive Officer
Eric Evans has served as Chief Executive Officer and Director of Surgery Partners, Inc. since January 2020, having previously been Executive Vice President and Chief Operating Officer since April 2019. Prior to joining Surgery Partners, Mr. Evans spent nearly 20 years in various operating and strategic roles in healthcare services, including serving as President of Hospital Operations for Tenet Healthcare, where he was responsible for 68 acute care hospitals and 161 hospital-affiliated facilities. He also held positions as CEO of Tenet's Texas Region and market leadership roles, as well as Chief of Staff to the CEO. Surgery Partners is backed by private equity firm Bain Capital.

David T. Doherty, Executive Vice President and Chief Financial Officer
David T. Doherty was appointed Executive Vice President and Chief Financial Officer of Surgery Partners, Inc. in February 2022. He joined Surgery Partners in April 2018 and served as Senior Vice President of Corporate Finance and Controller since August 2018. Before his tenure at Surgery Partners, Mr. Doherty spent 15 years at Aetna Inc., where he held various senior financial management roles, including leadership positions in internal audit, planning, risk management, and serving as assistant controller. He earned his CPA while working at Arthur Andersen, LLP.

Jennifer B. Baldock, Executive Vice President, Chief Administrative Officer and General Counsel
Jennifer B. Baldock holds the title of Executive Vice President, Chief Administrative Officer and General Counsel at Surgery Partners. She is also listed as Executive Vice President and Chief Administrative & Development Officer.

Marissa Brittenham, Executive Vice President & Chief Strategy Officer
Marissa Brittenham was appointed Chief Strategy Officer of Surgery Partners, Inc. in January 2022. Her prior experience includes leading Growth at Cityblock Health and Medicaid Partnerships at Evolent Health, and she previously served as an Associate Partner at McKinsey & Company.

Jon Fredrickson, Senior Vice President & Chief Information Officer
Jon Fredrickson has served as Senior Vice President & Chief Information Officer for Surgery Partners since April 2025. He has held various leadership and CISO positions within Surgery Partners and across the healthcare sector, spanning both provider and payer markets.

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1. Dependence on Third-Party Payors and Regulatory Changes: Surgery Partners' business model is heavily reliant on contracts with third-party payors, including Medicare, Medicaid, and private insurance organizations. This exposes the company to substantial risks from changes in healthcare policies, reimbursement rates, and contract negotiations, which can significantly impact its financial stability and profitability. The healthcare industry is also subject to stringent and complex regulations, and any changes in laws or compliance requirements can pose significant threats, potentially leading to revenue and profitability impacts, as well as penalties for non-compliance.
2. High Debt Levels and Leverage: The company carries significant debt, which can limit its financial flexibility, constrain its ability to invest in growth opportunities, and make it more vulnerable to rising interest rates or adverse economic changes. For instance, Surgery Partners has a notable net-debt-to-EBITDA ratio, which lenders may view unfavorably and could necessitate dilutive equity offerings if additional capital is needed.
3. Operational Challenges and Profitability Concerns: Despite experiencing revenue growth, Surgery Partners has reported net losses in various periods, indicating ongoing operational challenges. Factors contributing to these losses include increased operating expenses, such as salaries, benefits, and supplies, as well as higher interest expenses. The company's ability to achieve sustained profitability and effectively manage its costs remains a significant concern.

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The following are clear emerging threats for Surgery Partners (SGRY):

• Accelerated Vertical Integration and Consolidation by Large Payers and Providers: Major healthcare payers, particularly UnitedHealth Group's Optum division, are aggressively expanding their provider networks through acquisitions of physician groups, ambulatory surgery centers, and specialty clinics. This vertical integration allows these entities to steer patients to their owned facilities, negotiate more favorable internal rates, and potentially limit independent providers like SGRY from participating in preferred networks or receiving competitive reimbursement rates. This trend represents a significant shift in market power towards integrated systems, potentially reducing the volume and negotiating leverage of independent surgical facility operators.
• Persistent Healthcare Labor Shortages and Wage Inflation: The healthcare industry continues to face acute shortages of critical personnel, including registered nurses, surgical technicians, anesthesiologists, and certain surgical specialists. This widespread labor crunch, exacerbated by factors like an aging workforce and post-pandemic burnout, drives significant wage inflation and increases recruitment and retention costs. For SGRY, which relies on efficient staffing and high utilization of its facilities, these pressures directly compress operating margins and can limit the capacity for growth or even force temporary operational reductions due to insufficient staff.

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Surgery Partners (SGRY) operates primarily within the United States, focusing on surgical facilities and related ancillary services. The main addressable markets for their services in the U.S. include Ambulatory Surgery Centers and Physician Services.

Ambulatory Surgery Centers (ASCs)

The addressable market for Ambulatory Surgery Centers (ASCs) in the U.S. was estimated to be between approximately USD 40.41 billion and USD 51.2 billion in 2024. This market is projected to grow significantly, with estimates suggesting it could reach around USD 60.8 billion by 2030, USD 62.03 billion by 2032, or even USD 103.4 billion by 2033/2034. This growth is driven by factors such as increased demand for outpatient procedures, cost-effectiveness, and technological advancements.

Physician Services

Surgery Partners also offers physician services, including multi-specialty physician practices and anesthesia services. The U.S. physician groups market, which encompasses these services, was estimated at USD 349.49 billion in 2024. This market is projected to expand to approximately USD 542.99 billion by 2030.

Surgical Hospitals

While Surgery Partners operates surgical hospitals, a specific addressable market size solely for "surgical hospitals" within the U.S. is not clearly delineated in the provided market research. The broader U.S. hospital services market, however, was valued at USD 2.48 trillion in 2024 and is projected to reach approximately USD 4.02 trillion by 2034. The global surgical hospital market was estimated at USD 19 billion in 2025.

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1. Growth in Surgical Case Volume, particularly in Higher-Acuity Specialties: Surgery Partners anticipates continued revenue expansion driven by an increase in surgical case volumes, with a specific focus on the accelerated migration of higher-acuity procedures, such as orthopedics and joint replacements, from traditional hospital settings to outpatient facilities. The company has reported robust growth in total joint surgeries within its ambulatory surgery centers (ASCs).
2. Strategic Acquisitions and Partnerships: A key component of Surgery Partners' growth strategy involves strategic acquisitions and partnerships. The company consistently deploys capital for acquiring new surgical facilities and physician practices, aiming to expand its operational footprint and diversify its service offerings.
3. DeNovo Facility Development: Surgery Partners is investing in the development of new "DeNovo" facilities. These new facilities are primarily concentrated in higher-acuity specialties, with a significant emphasis on orthopedics, and are expected to contribute to long-term revenue growth.
4. Rate Improvement and Revenue per Case: The company's revenue growth is also supported by improvements in revenue per case. While surgical case volume is expected to be a larger driver, strategic rate adjustments contribute to overall top-line expansion.
5. Operational Efficiencies and Margin Expansion: Though not a direct revenue driver, Surgery Partners' focus on operational efficiencies and margin expansion through cost management and procurement initiatives is crucial. Improved profitability and cash flow generation provide increased financial flexibility to self-fund growth initiatives, indirectly supporting sustainable revenue growth.

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Share Repurchases

• Surgery Partners had $46 million remaining under its $50 million share repurchase program as of December 31, 2024.
• The company made share repurchases totaling approximately $9.56 million between Q1 2020 and Q2 2021.

Share Issuance

• In 2022, Surgery Partners reported equity offering proceeds, net of related costs, of $857.7 million.
• The number of common shares outstanding increased from 126,607,086 as of February 19, 2024, to 127,613,091 as of February 24, 2025, and further to 129,341,779 as of November 3, 2025.

Outbound Investments

• In 2024, the company acquired a controlling interest in eight surgical facilities and several physician practices for a total cash consideration of $378.8 million.
• Approximately $225 million was deployed for acquisitions in 2023, alongside the opening of eight new facilities.
• Year-to-date in 2025 (as of Q3), $71 million in capital was deployed for acquisitions. The company also divested interests in three ambulatory surgery centers (ASCs) for $50 million in the first half of 2025.

Capital Expenditures

• Maintenance capital expenditures for the third quarter of 2025 were $10 million.
• Surgery Partners deployed approximately $325 million in capital across 12 transactions in 2021, which included increasing its installed base of robotics in its ambulatory surgery centers (ASCs).
• The company's goal for 2022 was to deploy at least $200 million in capital.