Surgery Partners and Baylor Scott & White Health Form Joint Venture to Expand Access to Quality Care

Rhea-AI Summary

Surgery Partners (NASDAQ:SGRY) and Baylor Scott & White Health formed a joint venture announced Dec 08, 2025 to jointly own the 16-bed Physicians Centre Hospital in Bryan, Texas.

The hospital will operate under the Baylor Scott & White name while Surgery Partners will continue day-to-day management. Patients can keep current providers. Services include bariatric, ophthalmologic, oral/maxillofacial, orthopedic, GI, podiatric, spinal, urologic, general, plastic/reconstructive surgery, sports medicine, pain management and radiology.

Positive

• Joint ownership of a 16-bed hospital in Bryan, Texas
• Hospital to operate under Baylor Scott & White brand
• Surgery Partners to continue managing daily operations
• Patients can retain current providers at the location
• Integration expands Baylor College Station region surgical continuum

Negative

• None.

News Market Reaction

-2.73%

1 alert

-2.73% News Effect

On the day this news was published, SGRY declined 2.73%, reflecting a moderate negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Hospital capacity: 16 beds

1 metrics

Hospital capacity 16 beds Size of The Physicians Centre Hospital in Bryan involved in joint venture

Market Reality Check

Price: $13.56 Vol: Volume 1,574,234 is about...

low vol

$13.56 Last Close

Volume Volume 1,574,234 is about 0.6x the 20-day average of 2,634,930, suggesting no elevated positioning ahead of this news. low

Technical Shares at 17.19 trade 34.29% below the 52-week high of 26.16 and below the 200-day MA of 21.83, indicating a pressured longer-term trend before this partnership.

Peers on Argus

Peers showed mixed moves: ACHC appeared in momentum scanners with a -9.18% move,...

1 Down

Peers showed mixed moves: ACHC appeared in momentum scanners with a -9.18% move, while AMED, CON, LFST, and ADUS had relatively modest single-day changes. With SGRY down 0.98% pre-news and only one peer in momentum, trading looked company-specific rather than a broad sector rotation.

Common Catalyst Concentra’s same-day headline on facility expansion loosely echoes SGRY’s growth partnership theme, highlighting ongoing network expansion across medical care facilities.

Historical Context

5 past events · Latest: Nov 10 (Negative)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Nov 10	Q3 2025 earnings	Negative	-25.4%	Revenue grew but outlook was cautious and net loss remained elevated.
Oct 24	Earnings call notice	Neutral	+0.4%	Announcement of Q3 2025 release date and conference call logistics.
Aug 05	Q2 2025 earnings	Positive	-0.3%	Strong revenue and EBITDA growth with reaffirmed full-year 2025 guidance.
Jul 18	Q2 call scheduling	Neutral	-1.3%	Notice of Q2 2025 earnings release timing and access details.
Jun 17	Bain talks end	Negative	-12.3%	Termination of Bain Capital acquisition talks while guidance was reaffirmed.

Pattern Detected

Recent history shows sharp downside reactions to major strategic or earnings updates, while neutral scheduling releases have seen mild to negative drift, suggesting a tendency for the stock to trade cautiously around news.

Recent Company History

Over the last six months, Surgery Partners reported multiple earnings updates and strategic milestones. Q2 and Q3 2025 results showed revenue growth (Q3 at $821.5M, up 6.6% YoY), but shares fell sharply 25.42% after the latest Q3 release, reflecting concern over softer volumes and outlook. The June decision to remain public after ending talks with Bain Capital also coincided with a 12.26% decline. Against this backdrop, today’s Baylor Scott & White joint venture adds a new growth-focused partnership to a story previously dominated by financial guidance and capital structure updates.

Market Pulse Summary

This announcement expands Surgery Partners’ collaborative footprint via a joint venture that brings ...

Analysis

This announcement expands Surgery Partners’ collaborative footprint via a joint venture that brings Baylor Scott & White branding and physician ownership to a 16-bed hospital recognized for surgical excellence. It complements recent quarters marked by revenue growth but persistent net losses and notable volatility around earnings updates. Investors may watch how volumes, case mix, and physician recruiting at this facility contribute to same-facility growth and overall portfolio performance.

Key Terms

joint venture, bariatric, ophthalmologic, orthopedic, +4 more

8 terms

joint venture financial

"This joint venture partnership reflects our ongoing dedication to customer-centered care"

A joint venture is when two or more companies team up to work on a specific project or business idea, sharing both the risks and the rewards. It’s like friends starting a lemonade stand together—each contributes resources and they split the profits, making it easier to succeed than going alone.

bariatric medical

"It offers a broad range of surgical options for bariatric, ophthalmologic, oral/maxillofacial"

Bariatric describes medical treatments, devices or procedures aimed at helping people with severe obesity lose weight and reduce related health risks, including surgical operations, implanted devices and newer drug or endoscopic therapies. Investors care because bariatric products sit at the intersection of healthcare demand, regulatory approval and payer coverage—like a major home renovation that can both improve immediate function and change long‑term costs—so market size, reimbursement rules and clinical results drive sales and valuation.

ophthalmologic medical

"It offers a broad range of surgical options for bariatric, ophthalmologic, oral/maxillofacial"

Relating to the diagnosis, treatment and care of the eyes and vision, often involving medicines, surgical procedures, or medical devices used by eye specialists. Investors watch ophthalmologic developments because breakthroughs, safety results, regulatory approvals or new devices can open large, predictable markets much like a better, cheaper tool transforming an everyday job—affecting sales, pricing power, and long-term company value.

orthopedic medical

"oral/maxillofacial, orthopedic, gastroenterological, podiatric, spinal and urologic conditions."

Relating to the prevention, diagnosis and treatment of injuries and disorders of the bones, joints, muscles, tendons and ligaments; commonly associated with surgeries, implants (like joint replacements or screws), braces and rehabilitation. Investors pay attention because orthopedic activity drives demand for medical devices, hospital services and rehab products—like how road repairs create business for construction firms—so changes in procedure volumes, new implant approvals or shifts in care settings can affect revenues and growth prospects for companies in this sector.

gastroenterological medical

"oral/maxillofacial, orthopedic, gastroenterological, podiatric, spinal and urologic conditions."

Gastroenterological describes anything related to the medical care, diseases, and treatments of the digestive system—stomach, intestines, liver and related organs. Investors care because advances, approvals, or setbacks in this area (new drugs, devices, or diagnostics) can change a company’s revenue prospects, clinical trial risk and regulatory pathway; think of it like the plumbing of the body: problems or fixes there affect overall system performance and future costs.

podiatric medical

"orthopedic, gastroenterological, podiatric, spinal and urologic conditions."

Relating to the medical care, treatment and devices for the foot, ankle and lower leg. For investors, the term flags a specific healthcare niche—clinics, surgical products, orthotics or therapies—where patient demand, insurance reimbursement and regulatory approvals shape revenue and risk much like a specialty within medicine; thinking of it as the foot-and-ankle equivalent of a dental or orthopedic specialty makes the market focus tangible.

urologic medical

"gastroenterological, podiatric, spinal and urologic conditions."

Urologic describes anything related to urology, the medical specialty that treats the urinary system (kidneys, bladder, ureters, urethra) and the male reproductive organs. For investors, urologic products, procedures, or clinical results signal potential markets for drugs, devices, or diagnostics — like plumbing and hardware for the body's waste and reproductive systems — where regulatory approvals, insurance coverage, and patient demand drive revenue and risk.

radiology medical

"sports medicine, pain management and radiology services."

Radiology is the medical field that uses imaging tools — like X-rays, CT scans, MRIs and ultrasound — to look inside the body and diagnose or monitor illnesses. For investors, radiology matters because it drives demand for hospital services, diagnostic equipment, software and imaging-based drug trials, acting like a camera and map that guides treatment decisions and revenue across healthcare businesses.

AI-generated analysis. Not financial advice.

The Physicians Centre Hospital in Bryan to become a Baylor Scott & White facility, as health system grows to keep up with population increase in the Brazos Valley

BRENTWOOD, Tenn., and BRYAN/COLLEGE STATION, Texas, Dec. 08, 2025 (GLOBE NEWSWIRE) -- Surgery Partners, Inc. (NASDAQ:SGRY) announces a new partnership with Baylor Scott & White Health, the largest not-for-profit health system in Texas, to jointly own with physicians the 16-bed hospital in Bryan known as The Physicians Centre Hospital*. Patients will be able to continue care with their current provider at the location. The hospital will operate under the Baylor Scott & White name in the future, with Surgery Partners continuing to manage daily operations.

The hospital has been recognized for surgical excellence and patient satisfaction. It offers a broad range of surgical options for bariatric, ophthalmologic, oral/maxillofacial, orthopedic, gastroenterological, podiatric, spinal and urologic conditions. The team also provides general, plastic, and reconstructive surgery, as well as sports medicine, pain management and radiology services.

“This marks a significant step forward in expanding access to quality patient care in the Bryan College Station community,” said Mike Sanborn, chief growth officer, Baylor Scott & White. “This joint venture partnership reflects our ongoing dedication to customer-centered care and strategic growth in the communities we serve.”

This facility will complement the surgical care services offered throughout the Baylor Scott & White – College Station Region, for a full continuum of surgical care close to home.

"We are committed to offering our patients access to exceptional care close to where they live and work," said Jason Jennings, president, Baylor Scott & White – College Station Region. "This partnership allows us to further enhance our services and deliver a seamless experience for our community as it continues to grow."

“We are excited to add Baylor Scott & White to our partnership at The Physicians Centre Hospital,” said Jennifer Baldock, Executive Vice President, Chief Administrative & Development Officer. “The new joint venture integrates our patient-centric hospital with one of the nation’s most respected health systems and provides the opportunity to serve additional patients, attract new physician partners, and broaden our breadth and depth of services.”

About Surgery Partners

Headquartered in Brentwood, Tennessee, Surgery Partners is a leading healthcare services company with a differentiated outpatient delivery model focused on providing high quality, cost effective solutions for surgical and related ancillary care in support of both patients and physicians. Founded in 2004, Surgery Partners is one of the largest and fastest growing surgical services businesses in the country, with more than 200 locations in 30 states, including ambulatory surgery centers, surgical hospitals, multi-specialty physician practices and urgent care facilities. For additional information, visit www.surgerypartners.com.

About Baylor Scott & White Health

As the largest not-for-profit health system in the state of Texas, Baylor Scott & White is empowering customers to live well by reimagining traditional healthcare — creating more convenient, personalized and informed experiences. It serves more than three million customers through 53 hospitals, including flagship academic medical centers in Dallas, Fort Worth and Temple; the Baylor Scott & White Research Institute; 1,300+ access points; 59,000+ team members; and its leading digital platform — MyBSWHealth. The system's award-winning employer solutions include Baylor Scott & White Health Plan, Baylor Scott & White Quality Alliance and Levanto — a company offering digitally enabled health products. Founded as a Christian ministry of healing more than a century ago, Baylor Scott & White's mission is to promote the health and well-being of all individuals, families and communities.

For more information, visit: BSWHealth.com

*Joint Ownership with Physicians / Notice Regarding Physician Ownership: These are hospitals in which physicians have an ownership or investment interest. The list of physician owners or investors is available to you upon request. Physicians provide clinical services as members of the medical staff at one of Baylor Scott & White Health's subsidiary, community or affiliated medical centers and are neither employees nor agents of those medical centers nor Baylor Scott & White Health.

Contacts:
Surgery Partners Investor Relations
(615) 234-8940
IR@surgerypartners.com

Baylor Scott & White Media Contact: Christy Millweard
(512) 366-7877
Christina.Millweard@BSWHealth.org

FAQ

What did Surgery Partners (SGRY) announce on Dec 08, 2025 about the Bryan hospital?

Surgery Partners announced a joint venture with Baylor Scott & White to jointly own the 16-bed Physicians Centre Hospital in Bryan, Texas.

Will the Physicians Centre Hospital (SGRY) change its name after the joint venture?

Yes. The hospital will operate under the Baylor Scott & White name while Surgery Partners continues daily management.

Can patients keep their current doctors at the former Physicians Centre Hospital (SGRY)?

Yes. Patients will be able to continue care with their current provider at the location.

Which surgical specialties will be available at the Baylor Scott & White facility formerly known as Physicians Centre Hospital (SGRY)?

Services listed include bariatric, ophthalmologic, oral/maxillofacial, orthopedic, GI, podiatric, spinal, urologic, general, plastic/reconstructive surgery, sports medicine, pain management, and radiology.

How does the joint venture affect surgical care in the College Station region related to SGRY?

The facility will complement existing surgical services in the Baylor Scott & White – College Station Region to provide a fuller continuum of care close to home.