US-based not-for-profit hospital network operator Orlando Health has agreed to acquire Tenet Healthcare’s 70% interest in Brookwood Baptist Health in Birmingham, Alabama, for up to $910m.
Brookwood Baptist Health was established in 2015, following a merger agreement between Tenet Healthcare and Baptist Health System.
It comprises five hospitals with more than 1,700 beds, over 70 primary and speciality care clinics, around 1,500 affiliated physicians and more than 7,300 employees.
The five hospitals include Brookwood Baptist Medical Center, Princeton Baptist Medical Center, Walker Baptist Medical Center, Shelby Baptist Medical Center, and Citizens Baptist Medical Center.
Baptist Health System president and CEO Amy Allen said: “We are pleased to have Orlando Health join Brookwood Baptist Health as a majority and managing partner.
“They have a proven track record in delivering high-quality healthcare services and are well-positioned to invest in our community. We are excited to welcome them to Birmingham and to jointly support the faith-based mission of Brookwood Baptist Health.”
Under the terms of the agreement, Orlando Health will purchase Brookwood Baptist Health’s five hospitals, along with physician practices and other related operations.
In addition, Tenet’s subsidiary Conifer Health Solutions will sign a new and expanded contract to provide revenue cycle management services for the Birmingham hospitals for ten years.
Orlando Health president and CEO David Strong said: “We are honoured to further Brookwood Baptist Health’s mission of extending the healing ministry of Christ.
“There is a need and opportunity for a private, not-for-profit healthcare system in this market.
“We believe this is a new day in healthcare for our organisations and look forward to making Brookwood Baptist the best healthcare system in Alabama.”
The transaction is expected to be completed in the fall of this year, subject to customary regulatory approvals, and closing conditions.
Upon closing, Brookwood Baptist Health will remain a joint venture with Baptist Health System, and its operations will be jointly managed by Baptist Health System and Orlando Health.
Orlando Health Southeast Region senior vice president and Orlando Health Dr. P. Phillips Hospital president Thibaut van Marcke will be appointed to lead Orlando’s Alabama operations.
Tenet Healthcare chairman and CEO Saum Sutaria said: “We are grateful for the partnership with Baptist Health System, which has enabled us to collectively enhance the high-quality, compassionate care that Brookwood Baptist Health offers.
“Orlando Health is an esteemed, high-performing healthcare organisation with an over a century-long commitment to improving the health and wellness of the communities they serve.
“Integration of these hospitals into their network will advance healthcare for the greater Birmingham communities.”
