Surgery Partners owns and operates a national network of outpatient surgical facilities across the U.S., including 157 ambulatory surgery centers (ASCs) and 19 short-stay surgical hospitals across 30 states as of year-end 2025. ASCs are free-standing facilities that perform planned, non-emergency procedures on an outpatient basis. Surgery Partners' core specialties are orthopedics and musculoskeletal (its fastest-growing segment, driven by total joint replacements), gastroenterology, ophthalmology, and general surgery. Surgery Partners earns revenue primarily through facility fees charged per surgical case, covering use of the operating room, equipment, supplies, and nursing staff. Revenue is driven by case volume, procedure and payer mix, and new facility additions. Commercial payors account for roughly half of revenue, with government programs (primarily Medicare) making up most of the remainder. Surgery Partners co-owns most facilities with physician partners, who have a financial incentive to direct cases to Surgery Partners facilities — a model that drives both physician loyalty and case volume. Surgery Partners grows through organic case growth at existing facilities (via physician recruiting and service line expansion), M&A (targeting ~$200M per year at ~8x EBITDA), and de novo facility construction. Surgery Partners is also conducting a portfolio review, looking to divest larger surgical hospitals to sharpen its focus on ASCs and reduce leverage. A key macro tailwind is the ongoing migration of procedures from hospital outpatient departments to lower-cost ASCs, a shift that CMS and commercial payors are actively incentivizing.