Intermountain Health Closes Deal for Two Idaho Hospitals, Real Estate

The deal covers the 88-bed Idaho Falls Community Hospital and 38-bed Mountain View Hospital, which Intermountain had jointly owned with Surgery Partners and a group of physicians since 2023.

Intermountain Health has completed its acquisition of interests in two Idaho hospitals, their affiliated clinics and associated real estate, making it the sole owner of Idaho Falls Community Hospital and increasing its ownership stake in Mountain View Hospital.

The deal covers the 88-bed Idaho Falls Community Hospital and 38-bed Mountain View Hospital, which Intermountain had jointly owned with Surgery Partners and a group of physicians since 2023. Surgery Partners said it received $797 million in gross proceeds and $587 million in net cash proceeds from the transaction. The deal values the facilities at approximately $1.15 billion.

Physician ownership in Mountain View Hospital remains unchanged following the transaction. The hospitals and their affiliated clinics will continue to operate separately from Intermountain Health and remain locally managed.

The organizations also said there will be no changes to current employment arrangements, including compensation.

The two hospitals have more than 2,300 employees, including more than 150 physicians. Idaho Falls Community Hospital opened in 2019, while Mountain View Hospital has operated since 2002 and has developed into a surgical hub that includes a Level III neonatal intensive care unit.

Separately, Medical Properties Trust (MPT) completed a $413 million transaction with Intermountain Health involving the real estate of the two hospitals. MPT received $371 million in cash proceeds and said most of the proceeds will be used to reduce its debt.

For Surgery Partners, the transaction reduces its exposure to hospital operations and Medicaid while supporting its strategy to focus on short-stay surgical services and ambulatory surgery centers. Surgery Partners CEO Eric Evans said the transaction is expected to support adjusted earnings growth while reducing balance-sheet leverage and improving free cash flow conversion.

Intermountain Health, headquartered in Utah, operates 34 hospitals and approximately 400 clinics across six states. The nonprofit health system reported $18.5 billion in total operating revenue in 2025 and currently operates Cassia Regional Hospital, a 25-bed critical access hospital in Burley, Idaho.

The Idaho transaction follows Intermountain's recent announcement of a proposed joint venture with AdventHealth involving three Denver-area hospitals.

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