Orlando Well being has agreed to buy Tenet Healthcare’s 70% majority possession curiosity in Brookwood Baptist Well being in Birmingham, Ala., for roughly $910 million in money (after-tax proceeds of roughly $790 million).
Brookwood Baptist Well being consists of 5 hospitals throughout Central Alabama with greater than 1,700 beds, greater than 70 major and specialty care clinics, roughly 1,500 affiliated physicians and greater than 7,300 staff. It was fashioned in 2015 following a merger settlement between Tenet and Baptist Well being System.
Nonprofit Orlando Well being is a 3,487-bed system that features 17 hospitals, 10 free-standing emergency rooms and 9 Hospital Care at House applications. A further 4 hospitals and 6 free-standing emergency rooms are in improvement. It should handle day-to-day operations of Brookwood Baptist Well being in partnership with Baptist Well being System. Baptist Well being System will stay within the partnership and it’ll stay a faith-based group.
“We’re happy to have Orlando Well being be part of Brookwood Baptist Well being as a majority and managing companion. They’ve a confirmed observe document in delivering high-quality healthcare providers and are nicely positioned to spend money on our neighborhood. We’re excited to welcome them to Birmingham and to collectively help the faith-based mission of Brookwood Baptist Well being,” mentioned Amy Allen, president and CEO of Baptist Well being System, in an announcement.
Thibaut van Marcke, who presently serves as senior vice chairman of Orlando Well being Southeast Area and president of Orlando Well being Dr. P. Phillips Hospital, will lead Orlando Well being’s efforts in Alabama.
The transaction is anticipated to shut within the fall of 2024, topic to regulatory approval. At closing, the title of the system will change into Baptist Well being.
Below the settlement, Dallas-based Tenet’s Conifer Well being Options subsidiary will enter into a brand new and expanded 10-year contract to offer income cycle administration providers for the Birmingham hospitals and associated operations.
In April 2024, Tenet introduced the completion of the sale of its 4 Orange County and Los Angeles County hospitals and associated operations to UCI Well being. Tenet additionally accomplished the sale of its two San Luis Obispo hospitals and associated operations to Adventist Well being.
For the 12 months ended June 30, 2024, publicly traded Tenet (NYSE: THC) mentioned its fairness curiosity within the Brookwood Baptist Well being three way partnership generated pre-tax earnings of roughly $12 million and an Adjusted EBITDA much less non-controlling curiosity of roughly $60 million, excluding curiosity expense of roughly $2 million and depreciation and amortization expense of roughly $46 million. The corporate estimates recording a pre-tax e-book acquire of roughly $375 million on account of this anticipated transaction.
