Tenet Healthcare to Sell $910 Million Stake in Five Birmingham Hospitals

Tenet Healthcare Corp. announced today a definitive agreement to sell its 70% majority ownership interest in Brookwood Baptist Health, which includes five Birmingham-area hospitals and their affiliated physician practices and operations.

Orlando Health is purchasing the stake for approximately $910 million in cash.

The transaction encompasses Brookwood Baptist Medical Center, Princeton Baptist Medical Center, Walker Baptist Medical Center, Shelby Baptist Medical Center, and Citizens Baptist Medical Center.

Orlando Health, a private, not-for-profit healthcare organization, will manage Brookwood Baptist Health's day-to-day operations in partnership with Baptist Health System. Baptist Health System will retain its involvement in the partnership and continue as a faith-based organization.

Following the closing, the system will be named Baptist Health.

Thibaut van Marcke, currently senior vice president of Orlando Health Southeast Region and president of Orlando Health’s Dr. P. Phillips Hospital, will lead Orlando Health in Alabama.

The transaction is expected to close this fall, subject to regulatory approvals, clearances, and closing conditions.

As part of the deal, Tenet’s Conifer Health Solutions subsidiary will enter into a new and expanded 10-year contract to provide revenue cycle management services for the hospitals.

Tenet Healthcare CEO Saum Sutaria praised Orlando Health as an "esteemed, high-performing healthcare organization."

“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,” Sutaria said. “Integration of these hospitals into their network will advance healthcare for the greater Birmingham communities.”

Orlando Health CEO David Strong emphasized the opportunity and need for a private, not-for-profit healthcare system in the market.

“We are honored to further Brookwood Baptist Health’s mission of extending the healing ministry of Christ,” Strong said. “We believe this is a new day in healthcare for our organizations and look forward to making Brookwood Baptist the best healthcare system in Alabama.”

Brookwood Baptist Health consists of five hospitals across central Alabama with more than 1,700 beds, over 70 primary and specialty care clinics, about 1,500 affiliated physicians, and more than 7,300 employees.