Dallas-based Tenet Healthcare (NYSE: THC) has agreed to sell its 70% majority stake in Birmingham, Alabama’s Brookwood Baptist Health for around $910 million in cash, the company said Monday.
The sale to Florida-based Orlando Health will include five hospitals—Brookwood Baptist Medical Center, Princeton Baptist Medical Center, Walker Baptist Medical Center, Shelby Baptist Medical Center, and Citizens Baptist Medical Center—along with affiliated physician practices and other related operations. Brookwood Baptist Health will remain a joint venture with Baptist Health System.
The deal’s after-tax proceeds are slated to be around $790 million, Tenet added.
Under the agreement, Tenet subsidiary Conifer Health Solutions will enter into a new and expanded 10-year contract to provide revenue cycle management services for the Birmingham hospitals and related operations, Tenet noted.
“We’re 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,” Saum Sutaria, M.D., chairman and CEO of Tenet Healthcare, said in a statement. “Orlando Health is an esteemed, high-performing healthcare organization with an over 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.”
Tenet said that over the 12 months ended June 30, 2024, its equity interest in the Brookwood Baptist Health joint venture generated pre-tax income of approximately $12 million and an Adjusted EBITDA less non-controlling interest of approximately $60 million, excluding interest expense of approximately $2 million and depreciation and amortization expense of approximately $46 million. The company estimates that it will record a pre-tax book gain of around $375 million as a result of this anticipated transaction.
The deal is expected to close this fall, subject to customary regulatory approvals, clearances, and closing conditions, Tenet said.
In March, Tenet sold two Tenet hospitals and related operations in San Luis Obispo County, California, to Adventist Health in a deal valued at roughly $550 million.
Get on the list.
Dallas Innovates, every day.
Sign up to keep your eye on what’s new and next in Dallas-Fort Worth, every day.
R E A D N E X T
-
North Texas has plenty to see, hear, and watch. Here are our editors' picks. Plus, you'll find more selections to "save the date."
-
The Dallas Public Library's J. Erik Jonsson Central Library in downtown Dallas—one of America's largest—was built in 1982 across from Dallas City Hall, and many agree it could use an overhaul. That especially includes library officials and consultants they brought in for a report on the building's future, among other needed investments in the city's library system.
-
Dallas' climate plan, deemed a national leader by the Brookings Institution in 2022, is coming up on its five-year mark. Integration architect Julie Hiromoto and globe-trotting brain health policy expert Dr. Harris A. Eyre are exploring how the city's Comprehensive Environmental and Climate Action Plan (CECAP) could benefit from a "Brain Capital" boost. Now, they believe, is the time to “formally incorporate this lever for transformative systems change.” Their work could reshape how cities approach sustainability, starting in Dallas.
-
Tenet said its Conifer Health Solutions subsidiary will enter into an agreement to provide revenue cycle services for San Luis Obispo County-based Adventist Health, which is acquiring the two hospitals.
-
Dallas-based Evry Health launched out of stealth in December 2021 to make signing up for healthcare or paying a doctor’s bill "as easy as ordering a pizza." Less than two years later, it's becoming part of the Globe Life family of brands.
