Surgery Partners

To enhance patient quality of life by being the preferred partner for physicians and patients in every community we serve.

Surgery Partners SWOT Analysis

Updated: October 6, 2025 • 2025-Q4 Analysis

How to Use This Analysis

This analysis for Surgery Partners was created using Alignment.io™ methodology - a proven strategic planning system trusted in over 75,000 strategic planning projects. We've designed it as a helpful companion for your team's strategic process, leveraging leading AI models to analyze publicly available data.

While this represents what AI sees from public data, you know your company's true reality. That's why we recommend using Alignment.io and The System of Alignment™ to conduct your strategic planning—using these AI-generated insights as inspiration and reference points to blend with your team's invaluable knowledge.

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The Surgery Partners SWOT analysis reveals a company skillfully navigating a powerful industry tailwind—the shift of care to ambulatory settings. Its core strength is a proven physician partnership model that drives impressive volume growth and high retention. However, this growth is fueled by a debt-heavy acquisition strategy, creating significant financial leverage risk. The primary challenge is balancing aggressive expansion in high-acuity specialties like cardiology against inflationary pressures on labor and supplies that are squeezing margins. Key priorities must be to standardize operations for efficiency, deleverage the balance sheet, and double down on the physician alignment strategy that serves as its competitive moat against larger, more integrated rivals. Success depends on converting top-line growth into sustainable free cash flow.

Tenet Healthcare HCA Healthcare Envision Healthcare Surgical Care Affiliates (Optum) AmSurg (KKR)

No past cycles

Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

To enhance patient quality of life by being the preferred partner for physicians and patients in every community we serve.

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Strengths

GROWTH: Consistent high single-digit same-facility case volume growth.
ACQUISITIONS: Proven M&A strategy, successfully integrating new centers.
PAYOR MIX: Favorable commercial payor mix drives strong revenue per case.
SPECIALTIES: Strong position in high-growth MSK & GI service lines.
PARTNERSHIPS: High physician retention (>95%) demonstrates model success.

Weaknesses

LEVERAGE: High debt-to-EBITDA ratio (4.3x) creates financial risk.
MARGINS: Labor cost inflation and rising supply costs compress margins.
INTEGRATION: Disparate IT systems across acquired facilities hinder ops.
SCALE: Still smaller than hospital systems and Optum-backed competitors.
CASH FLOW: Negative operating cash flow in recent quarters is a concern.

Opportunities

OUTPATIENT SHIFT: Accelerating migration of complex cases (cardiac, spine).
CARDIOVASCULAR: Huge growth runway in cardiovascular ASC procedures.
DE-NOVO: Build new centers in underserved markets with key physicians.
PAYOR PARTNERSHIPS: Engage in value-based contracts for specific procedures.
ANCILLARY: Expand higher-margin anesthesia and optical service lines.

Threats

LABOR: Persistent nursing and technician shortages are driving wage costs.
COMPETITION: Hospitals employing physicians to prevent case leakage.
REIMBURSEMENT: Medicare rate updates failing to keep pace with inflation.
INTEREST RATES: High rates increase cost of capital for future M&A.
REGULATION: Increased scrutiny on private equity in healthcare ownership.

Key Priorities

GROWTH: Capitalize on the outpatient shift, especially in cardiovascular.
PARTNERSHIPS: Deepen physician alignment to secure case volume and talent.
EFFICIENCY: Combat margin pressure via operational and tech improvements.
FINANCES: Strengthen the balance sheet to de-risk and fund future growth.

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Surgery Partners OKR

Updated: October 6, 2025 • 2025-Q4 Analysis

This Surgery Partners OKR plan is a focused and potent blueprint for action. It correctly translates the strategic imperative—balancing growth with profitability—into measurable outcomes. The objectives are inspiring and directly address the core priorities from the SWOT analysis. The key results are strong, particularly in their specificity around high-growth areas like cardiology and critical operational levers like supply chain and labor costs. By linking physician retention directly to operational improvements and financial fortification, this plan creates a virtuous cycle where being the best partner is also the most profitable strategy. Executing this plan will build a more resilient, efficient, and dominant enterprise.

Tenet Healthcare HCA Healthcare Envision Healthcare Surgical Care Affiliates (Optum) AmSurg (KKR)

No past cycles

Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

To enhance patient quality of life by being the preferred partner for physicians and patients in every community we serve.

DRIVE GROWTH

Lead the industry in high-acuity outpatient migration.

CARDIO: Launch or acquire 10 new cardiovascular ASC programs, driving a 50% increase in cardiac case volume.
PIPELINE: Add 200 new physicians to our network through strategic recruitment at newly acquired facilities.
DE-NOVO: Open 5 new de-novo facilities in targeted high-growth markets ahead of schedule and under budget.
VOLUME: Achieve 9% same-facility surgical case volume growth by optimizing scheduling and block utilization.

SECURE PARTNERSHIPS

Be the undisputed partner of choice for elite surgeons.

RETENTION: Maintain a >97% physician partner retention rate by enhancing support services and communication.
ONBOARDING: Reduce new physician credentialing and onboarding time from 90 days to a best-in-class 45 days.
SATISFACTION: Increase physician satisfaction score by 15 points via a new digital dashboard for performance.
ALIGNMENT: Co-develop and launch value-based care initiatives with our top 5 physician advisory boards.

BOOST EFFICIENCY

Achieve best-in-class margins through operational mastery.

SUPPLY CHAIN: Realize $25M in savings through improved GPO compliance and inventory management system rollout.
LABOR: Decrease reliance on contract labor by 30% through targeted recruitment and retention initiatives.
AUTOMATION: Automate 50% of prior authorization tasks using new RCM tools, reducing denial rates by 20%.
UTILIZATION: Increase average operating room utilization by 10% by deploying a new AI-powered scheduling tool.

FORTIFY FINANCES

Build a resilient balance sheet to fuel long-term vision.

LEVERAGE: Reduce net leverage ratio from 4.3x to below 4.0x through disciplined capital allocation.
CASH FLOW: Generate positive free cash flow for four consecutive quarters by improving working capital management.
PAYOR: Secure average rate increases of at least 4% across all commercial contract renewals for the year.
CAPEX: Optimize capital expenditures to ensure all growth projects deliver a minimum 20% return on investment.

METRICS

Adjusted EBITDA: Achieve $500M
Net Leverage Ratio: < 4.0x
Same-Facility Case Volume Growth: +9%

VALUES

Service Excellence
Integrity
Teamwork
Accountability
Continuous Improvement

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Surgery Partners Retrospective

AI-Powered Insights

Claude

Gemini

GPT

Surgery Partners Q1 2024 Earnings Report & Transcript
Surgery Partners Investor Presentations (May 2024)
SEC Filings (10-K, 10-Q) for Surgery Partners (SGRY)
Public financial data from Yahoo Finance and Bloomberg
Company website and executive leadership pages

Tenet Healthcare HCA Healthcare Envision Healthcare Surgical Care Affiliates (Optum) AmSurg (KKR)

No past cycles

Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

To enhance patient quality of life by being the preferred partner for physicians and patients in every community we serve.

Toggle Theme

What Went Well

VOLUME: Strong same-store surgical case growth exceeded expectations.
ACQUISITIONS: M&A pipeline remains robust with several deals closed.
CARDIOVASCULAR: Continued successful expansion into high-acuity cardiac.
REVENUE: Top-line revenue growth of 9% year-over-year was solid.
PARTNERSHIPS: Physician recruitment and retention metrics remain very strong.

Not So Well

LABOR: Staffing costs, particularly for nurses, grew faster than revenue.
MARGINS: Adjusted EBITDA margin contracted by 50 basis points YoY.
CASH FLOW: Operating cash flow was negative due to working capital changes.
INTEREST: Higher interest expense is a growing headwind to net income.
SUPPLIES: Medical supply cost inflation remains a persistent challenge.

Learnings

EFFICIENCY: Organic growth alone cannot offset current expense inflation.
INTEGRATION: Standardizing supply chain across facilities is a key lever.
PRICING: Must be more aggressive in annual payor contract escalators.
STAFFING: Creative retention and flexible staffing models are critical.
DEBT: Deleveraging must become a more prominent strategic priority.

Action Items

OPERATIONS: Accelerate deployment of new supply chain management software.
FINANCE: Evaluate options for refinancing a portion of existing debt.
HR: Pilot new nurse retention bonus programs in three key markets.
PAYOR: Re-negotiate three of our largest commercial payor contracts.
GROWTH: Finalize diligence on two strategic cardiovascular ASC acquisitions.

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Organization	SWOT Analysis	OKR Plan	Top 6	Retrospective

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Surgery Partners Market

AI-Powered Insights

Claude

Gemini

GPT

Surgery Partners Q1 2024 Earnings Report & Transcript
Surgery Partners Investor Presentations (May 2024)
SEC Filings (10-K, 10-Q) for Surgery Partners (SGRY)
Public financial data from Yahoo Finance and Bloomberg
Company website and executive leadership pages

Founded: 2004
Market Share: Approx. 6% of the fragmented ASC market
Customer Base: Physicians, health systems, patients
Category:
Healthcare Facilities
SIC Code: 8011 Offices and Clinics of Doctors of Medicine
NAICS Code: 621493 Freestanding Ambulatory Surgical and Emergency Centers
Location: Brentwood, Tennessee
Zip Code: 37027
Congressional District: TN-7 NASHVILLE
Employees: 11400

Competitors

Tenet Healthcare View Analysis

HCA Healthcare View Analysis

Envision Healthcare Request Analysis

Surgical Care Affiliates (Optum) Request Analysis

AmSurg (KKR) Request Analysis

Products & Services

No products or services data available

Distribution Channels

Surgery Partners Business Model Analysis

AI-Powered Insights

Claude

Gemini

GPT

Surgery Partners Q1 2024 Earnings Report & Transcript
Surgery Partners Investor Presentations (May 2024)
SEC Filings (10-K, 10-Q) for Surgery Partners (SGRY)
Public financial data from Yahoo Finance and Bloomberg
Company website and executive leadership pages

Problem

Inefficient and costly hospital ORs
Lack of physician control and autonomy
High out-of-pocket costs for patients

Solution

Ambulatory Surgery Centers (ASCs)
Physician partnership/equity models
Lower-cost site of care for procedures

Key Metrics

Surgical case volume growth
Adjusted EBITDA & margin
Physician recruitment & retention rate

Unique

Physician-centric model at national scale
Focus on complex, high-acuity cases
Proven M&A integration playbook

Advantage

Strong physician alignment and loyalty
Bargaining power with payors/suppliers
Deep operational expertise in ASCs

Channels

Direct outreach to physician groups
Joint ventures with health systems
Referrals from existing physician partners

Customer Segments

Specialty physicians (Ortho, GI, Cardiac)
Patients needing surgical procedures
Commercial and government health payors

Costs

Staff salaries and benefits
Medical supplies and equipment
Facility rent and maintenance

Surgery Partners Product Market Fit Analysis

Updated: October 6, 2025

Surgery Partners creates a better way to deliver surgical care. It provides physicians with efficient, high-quality facilities, giving them more control and improving patient outcomes. This physician-centric model delivers superior care at a lower cost, making Surgery Partners the preferred partner for surgeons, patients, and payors who want to fix the inefficiencies of traditional hospital settings.

Increased physician autonomy and efficiency

Superior clinical environment for patients

Lower total cost of care for payors

Before State

Hospital OR inefficiency and bureaucracy
Lack of surgeon control over scheduling
Higher costs for patients and payors

After State

Efficient, physician-led surgical sites
Predictable scheduling and faster turnover
High-quality care in a lower-cost setting

Negative Impacts

Surgeon burnout and frustration
Delayed patient access to care
Unsustainable healthcare cost inflation

Positive Outcomes

Increased surgeon productivity and income
Improved patient experience and outcomes
Significant cost savings for the system

Key Metrics

Physician Retention Rate

>95%

Net Promoter Score (NPS)

Est. 50-60 (Physician)

User Growth Rate

8-10% annual case volume growth

Customer Feedback/Reviews

N/A, B2B focus

Repeat Purchase Rates

High physician loyalty

Requirements

Strong physician and staff recruitment
Robust payor contract negotiations
Efficient supply chain and case management

Why Surgery Partners

Forming local physician partnerships
Investing in state-of-the-art facilities
Standardizing best operational practices

Surgery Partners Competitive Advantage

Proven model of physician alignment
Scale to negotiate with payors/suppliers
Expertise in complex case migration

Proof Points

95%+ physician retention rate
160+ surgical facilities nationwide
Consistently growing case volumes

Surgery Partners Market Positioning

AI-Powered Insights

Claude

Gemini

GPT

Surgery Partners Q1 2024 Earnings Report & Transcript
Surgery Partners Investor Presentations (May 2024)
SEC Filings (10-K, 10-Q) for Surgery Partners (SGRY)
Public financial data from Yahoo Finance and Bloomberg
Company website and executive leadership pages

Strategic pillars derived from our vision-focused SWOT analysis

PARTNERSHIPS

Be the indispensable partner for top-tier physicians.

GROWTH

Drive organic growth and execute strategic acquisitions.

EXCELLENCE

Achieve best-in-class clinical and operational results.

CULTURE

Foster a collaborative, patient-first team environment.

What You Do

Owns and operates surgical facilities

Target Market

Surgeons seeking efficient, high-quality sites

Differentiation

Physician-centric partnership model
Focus on high-acuity specialties

Revenue Streams

Surgical procedure fees
Ancillary services (anesthesia, optical)

Surgery Partners Operations and Technology

AI-Powered Insights

Claude

Gemini

GPT

Surgery Partners Q1 2024 Earnings Report & Transcript
Surgery Partners Investor Presentations (May 2024)
SEC Filings (10-K, 10-Q) for Surgery Partners (SGRY)
Public financial data from Yahoo Finance and Bloomberg
Company website and executive leadership pages

Company Operations

Organizational Structure: Decentralized operations, centralized support
Supply Chain: Group purchasing orgs for medical supplies
Tech Patents: Focus on operational tech, not patents
Website: https://surgerypartners.com/

Top Clients

Board Members

Surgery Partners Competitive Forces

Threat of New Entry

Moderate: Capital requirements and regulatory hurdles (Certificate of Need laws) exist, but physician-owned startups are a constant threat.

Supplier Power

Moderate: Group Purchasing Organizations (GPOs) provide leverage, but key surgical device manufacturers (e.g., Stryker, J&J) hold power.

Buyer Power

High: Large insurance companies (UnitedHealth, Elevance) exert significant pricing pressure and can steer volume through network design.

Threat of Substitution

Low to Moderate: For most surgical procedures, the only substitute is a hospital outpatient department, which is typically less efficient and more costly.

Competitive Rivalry

High: Fragmented market with large, well-capitalized rivals like SCA (Optum), HCA, and Tenet, all vying for physician partnerships.

Analysis of AI Strategy

Updated: October 6, 2025 • 2025-Q4 Analysis

The Surgery Partners AI SWOT analysis highlights a significant opportunity to transform operational efficiency. The company's greatest asset is its vast, proprietary dataset of surgical encounters, a goldmine for training AI models. However, its current fragmented IT infrastructure is the primary barrier to unlocking this value. The most immediate, high-ROI applications are not in moonshot clinical algorithms but in the back office: optimizing OR schedules, automating revenue cycle management, and predicting supply needs. The strategic path is clear: prioritize building a unified data infrastructure while partnering with best-in-class AI vendors for specific operational use cases. This pragmatic approach will allow Surgery Partners to leverage AI to combat margin pressure and enhance its value proposition to physician partners without the risk of large, speculative internal development projects.

Tenet Healthcare HCA Healthcare Envision Healthcare Surgical Care Affiliates (Optum) AmSurg (KKR)

No past cycles

Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

To enhance patient quality of life by being the preferred partner for physicians and patients in every community we serve.

Strengths

DATA: Large, structured dataset on surgical cases, costs, and outcomes.
NETWORK: Ideal scale to pilot and deploy AI tools across 160+ sites.
PARTNERS: Physician partners are eager for tech that boosts efficiency.
OPERATIONS: Clear, measurable processes (e.g., scheduling) ripe for AI.

Weaknesses

INFRASTRUCTURE: Fragmented legacy IT systems hinder data aggregation.
TALENT: Lack of in-house AI/ML engineering and data science expertise.
BUDGET: Limited R&D budget for speculative AI projects vs. core ops.
STANDARDIZATION: Inconsistent data capture protocols across facilities.

Opportunities

SCHEDULING: AI-driven OR scheduling to maximize utilization and staffing.
SUPPLY CHAIN: Predictive analytics for inventory management and cost reduction.
REVENUE CYCLE: AI tools to automate coding, billing, and prior authorization.
CLINICAL: Decision support tools to identify at-risk patients pre-op.

Threats

PRIVACY: Risk of PHI data breach from third-party AI vendor platforms.
BIAS: Algorithmic bias in scheduling or clinical tools could harm care.
COST: High implementation and subscription costs of enterprise AI tools.
ADOPTION: Physician and staff resistance to changes in established workflows.

Key Priorities

EFFICIENCY: Deploy AI for OR scheduling and revenue cycle management first.
DATA: Build a unified data warehouse to enable advanced analytics.
PARTNERSHIPS: Pilot AI tools from established vendors vs. building in-house.
GOVERNANCE: Establish clear data privacy and AI ethics protocols now.

Create professional SWOT analyses in minutes with our AI template. Get insights that drive real results.

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Surgery Partners Financial Performance

AI-Powered Insights

Claude

Gemini

GPT

Surgery Partners Q1 2024 Earnings Report & Transcript
Surgery Partners Investor Presentations (May 2024)
SEC Filings (10-K, 10-Q) for Surgery Partners (SGRY)
Public financial data from Yahoo Finance and Bloomberg
Company website and executive leadership pages

Profit: -$51.3M Net Loss (TTM)

Market Cap: $3.1 Billion

Stock Performance

Annual Report: View Report

Debt: $3.6 Billion (Total Debt)

ROI Impact: M&A integration costs impact short-term ROI

SWOT Index

Composite strategic assessment with 10-year outlook

/ 100

Market Leader

ICM Index

STRATEGIC ADVISOR ASSESSMENT

Surgery Partners has a societally important mission with a clear, achievable strategy. Its Iconic Index reflects a solid Market Leader position, driven by a strong physician-centric model (North Star) and a focused OKR plan. The score is tempered by significant financial leverage and margin pressures (SWOT Factors), which also constrain its growth multiplier. The company's future trajectory depends on executing operational efficiencies to translate impressive top-line growth into bottom-line strength and de-risk its balance sheet.

SWOT Factors

Upside: 83.3 Risk: 78.3

OKR Impact

AI Leverage

Top 3 Strategic Levers

Boost efficiency to improve margins and fund growth.

Deepen physician partnerships to secure high-acuity volume.

Strengthen the balance sheet to reduce financial risk.

AI Disclosure

This report was created using the Alignment Method—our proprietary process for guiding AI to reveal how it interprets your business and industry. These insights are for informational purposes only and do not constitute financial, legal, tax, or investment advice.

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About Alignment LLC

Alignment LLC specializes in AI-powered business analysis. Through the Alignment Method, we combine advanced prompting, structured frameworks, and expert oversight to deliver actionable insights that help companies understand how AI sees their data and market position.