Tenet Healthcare Corporation has finalized a definitive agreement to sell its 70% predominant ownership interest in Brookwood Baptist Health, which is situated in Birmingham, to Orlando Health for approximately $910 million in cash. The estimated after-tax proceeds are $790 million. The transaction includes five hospitals—Brookwood Baptist Medical Center, Princeton Baptist Medical Center, Walker Baptist Medical Center, Shelby Baptist Medical Center, and Citizens Baptist Medical Center—as well as physician practices and ancillary operations that are affiliated. A joint venture between Baptist Health System and Brookwood Baptist Health will persist. In addition, Conifer Health Solutions, a subsidiary of Tenet, will execute a new 10-year agreement to furnish revenue cycle management services to the Birmingham facilities.
Tenet Healthcare, based in Dallas, operates a vast network that includes United Surgical Partners International, US, the largest ambulatory surgery platform, as well as a portfolio of acute care and specialty hospitals. The company reported that its equity interest in Brookwood Baptist Health generated pre-tax income of approximately $12 million for the twelve months ending June 30, 2024. Orlando Health, a highly respected healthcare provider with over a century of service, is expected to integrate these hospitals into its network, further enhancing healthcare services in the Birmingham area.
