Surgery Partners, Inc. (SGRY) Stock Analysis

Surgery Partners’ primary competitive advantage lies in its physician partnership model, which aligns incentives by offering equity and governance roles to surgeons. This structure fosters high physician retention and drives case volume growth, a key differentiator versus hospital-owned ambulatory surgery centers (ASCs) and larger health systems. As of mid-2025, SGRY operates over 160 surgical facilities across 30+ states, making it the largest independent ASC operator in the U.S. and second only to Tenet’s USPI in scale.

SGRY’s national footprint and specialty diversification—particularly in orthopedics, gastroenterology, and cardiology—reduce reliance on any single market or procedure type. Its focus on high-acuity, higher-reimbursement cases (e.g., total joint replacements) positions it to benefit from the ongoing industry shift from inpatient to outpatient settings. In 2024, SGRY’s same-facility case growth was 3.9%, outpacing many peers.

Operationally, SGRY demonstrates disciplined cost control and efficient facility management, reflected in a 24% gross margin and mid-teens adjusted EBITDA growth. Its M&A track record is robust, with a pipeline supported by private equity backing (Bain Capital holds ~51%). Compared to rivals like HCA and AMSURG, SGRY’s independence and physician alignment are strategic assets, though it faces similar risks from labor costs and reimbursement pressure. The company’s culture emphasizes service excellence and continuous improvement, supporting its reputation among both physicians and payors.