Automated, clinician-grade assessment reports for surgical procedures could reduce documentation burden and provide objective feedback, yet remain challenging due to the difficulty of aligning dense spatio-temporal video representations with language-based reasoning and the scarcity of high-quality, privacy-preserving datasets. To address this gap, we establish a benchmark comprising 214 high-quality simulated surgical videos paired with surgeon-authored evaluation reports. Building on this resource, we propose a Perception-Alignment-Reasoning framework for surgical video report generation, featuring Hi-GaTA, a novel lightweight temporal adapter that efficiently compresses long video sequences into compact, LLM-compatible visual prefix tokens through short-to-long-range temporal aggregation. For robust visual perception, we pretrain Sur40k, a surgical-specific ViViT-style video encoder on 40,000 minutes of public surgical videos to capture fine-grained spatio-temporal procedural priors. Hi-GaTA employs a temporal pyramid with text-conditioned dual cross-attention, and improves multi-scale consistency through cross-level gated fusion and an increasing-depth strategy. Finally, we fine-tune the LLM backbone using LoRA to enable coherent and stylistically consistent surgical report generation under limited supervision. Experiments show our approach achieves the best overall performance, with consistent gains over strong Multimodal Large Language Model (MLLM) baselines. Ablation studies further validate the effectiveness of each proposed component.