Surgery Partners, Inc. (SGRY) Stock Analysis

Surgery Partners’ primary competitive advantage lies in its scale and focus within the fragmented U.S. short-stay surgical market. As of mid-2025, the company operates over 200 facilities across 30 states, making it one of the largest independent ambulatory surgery center (ASC) and surgical hospital operators. This national footprint enables superior contracting leverage with private insurers and group purchasing organizations, often resulting in more favorable reimbursement rates and supply costs than smaller peers.

Unlike hospital-centric rivals such as HCA Healthcare or Tenet’s USPI, Surgery Partners is not encumbered by legacy acute-care assets. Its facilities are purpose-built for outpatient procedures, offering lower costs, faster scheduling, and higher physician satisfaction. The company’s physician partnership model—often structured as joint ventures—aligns incentives and supports robust physician recruitment and retention. This model has contributed to consistent mid-teens revenue growth and EBITDA margins (16% in 2024), outpacing many hospital-based competitors.

Operationally, Surgery Partners demonstrates disciplined cost control and data-driven physician recruiting, supporting above-market same-facility growth. Its acquisition and de novo development capabilities further reinforce its position, as evidenced by a pipeline of new facilities and partnerships with health systems such as Intermountain Health and Ohio Health.

However, the company faces ongoing reimbursement pressure and competition from larger, diversified players. Its focus on outpatient care and scale-driven efficiencies remain its most defensible advantages.