Medical Properties Trust Completes $371 Million Sale of Two Idaho Hospitals to Intermountain Health
Medical Properties Trust has completed the sale of two acute-care hospitals in Idaho Falls, Idaho, to affiliates of Intermountain Health for a gross transaction value of approximately $413 million, generating $371 million in cash proceeds to the real estate investment trust. The transaction, announced Sept. 16, 2026, was priced at a 6.9% cap rate and represents one of the larger single-market hospital portfolio dispositions in MPT's ongoing asset-sale program.
Deal Structure and Pricing
The two assets — Idaho Falls Community Hospital and Mountain View Hospital — were sold as a two-property portfolio, both located in Idaho Falls, Idaho, and operated together as a regional acute-care system. The gross sale price of approximately $413 million exceeded MPT's gross investment basis in the two hospitals of roughly $240 million, implying a gain of approximately $130 million above gross book value.
Of the $413 million gross proceeds, $371 million flowed to Medical Properties Trust, with the remaining approximately $42 million distributed to minority real estate owners in the deal structure. At a 6.9% cap rate on the $413 million transaction price, the stabilized annual net operating income on the two-hospital portfolio is approximately $28.5 million.
The buyer, Intermountain Health, is an investment-grade not-for-profit health system, a credit profile that supports the pricing achieved in the transaction. Post-closing, Intermountain Health continues as the operator of both facilities.
Balance Sheet and Capital Recycling Context
Medical Properties Trust has indicated it expects to use most of the $371 million in cash proceeds to reduce debt, framing the Idaho Falls transaction as a balance-sheet event as much as a portfolio reshaping. The sale fits within a broader 2026 capital-recycling and deleveraging effort that has included several concurrent initiatives.
In August 2026, MPT announced a $2.4 billion private refinancing transaction expected to extend debt maturities to 2032 and reduce debt by approximately $123 million. Earlier in the third quarter, the company also announced the Infracore Swiss listing, a monetization of its Swiss hospital platform intended to unlock equity value and provide incremental liquidity. Together with the Idaho Falls sale and a separate disposition of five Utah hospitals, MPT has generated approximately $680 million in third-quarter cash proceeds across these transactions.
The gain realized on the Idaho Falls portfolio — roughly 72% above MPT's gross investment cost, before transaction expenses and minority interests — has been cited in investor commentary as evidence that the company's book values for acute-care assets reflect market-supportable pricing.
Portfolio and Operating Fundamentals
The two Idaho Falls hospitals are acute-care, income-producing facilities that represent the type of general acute-care assets that remain the majority of MPT's portfolio. In its second-quarter 2026 results, MPT reported aggregate EBITDARM coverage of 2.8x for its general acute-care assets, a metric that reflects the rent-paying capacity of hospital operators across its holdings.
The Idaho Falls transaction follows a series of other corporate developments disclosed by Medical Properties Trust in 2026, including first- and second-quarter earnings releases, a statement regarding Healthcare Systems of America issued in March, and a shareholder letter in January addressing a branding refresh. MPT also declared regular quarterly dividends in February, May, and August of this year.
Broader Implications for Healthcare Real Estate
The 6.9% cap rate on an investment-grade, not-for-profit hospital operator in a secondary Idaho market provides a data point for the healthcare real estate sector at a time when hospital REIT valuations and operator credit quality have been under scrutiny. The transaction demonstrates continued buyer appetite for stabilized, acute-care hospital real estate when underpinned by creditworthy tenants, and it underscores the role that asset sales are playing in MPT's effort to extend its debt maturity profile and reduce leverage.