Tenet Healthcare to Sell 5 Birmingham-Metro Hospitals to Orlando Health
Transfer of Ownership Announced
In a solidification of its commitment towards a strategy of strategic portfolio optimization, Tenet Healthcare Corporation announced today that it will sell its 70% majority ownership stake in Brookwood Baptist Health. The stake, worth approximately $910 million, is being sold to Orlando Health. The transaction, which is estimated to result in after-tax proceeds of approximately $790 million, includes five area hospitals in the Birmingham Metro area.
The Included Hospitals
The deal encompasses a number of healthcare centres; Brookwood Baptist Medical Center, Princeton Baptist Medical Center, Walker Baptist Medical Center, Shelby Baptist Medical Center, and Citizens Baptist Medical Center. Other entities such as affiliated physician practices and related operations are also included in the comprehensive deal.
Unveiling the Collaborative Effort
In the official press release about the transaction, Saum Sutaria, M.D., Chairman and CEO, Tenet Healthcare stated, “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 organization 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.”
An Expected Fall 2024 Closure
Though the process has been initiated, the stakeholders estimate that the entire transition will finalize by the fall of 2024. The successful completion of the transaction would require approval from determined healthcare bureaucratic channels before it becomes effective. Post transaction, Brookwood Baptist Health will still be in a joint venture situation with Baptist Health System.
Shaping the Future of Birmingham’s Healthcare
The dynamic healthcare landscape in the Birmingham Metro area is not just being shaped by the discussed transition alone. This news about the transition follows closely on the heels of another major transaction. In June, the University of Alabama System Board of Trustees had given the green signal to their agreement to assume ownership of Ascension St. Vincent’s Health System across Central Alabama. With these changes in ownership and control, it seems clear that the healthcare sector in the Birmingham Metro area is set for significant changes and improvements in its management and operations.
A Welcome Development
As these substantial shifts play out, the anticipation is that the changes will benefit the healthcare community. Residents of the Birmingham Metro area can expect better services, greater healthcare variety, and an enhanced healthcare suite delivered with efficiency.
