In a significant move within the healthcare sector, Tenet Healthcare Corporation (NYSE:THC) has announced a definitive agreement to sell its 70% majority stake in Brookwood Baptist Health to Orlando Health.
The transaction, valued at approximately $910 million in cash, will see after-tax proceeds near $790 million for Tenet.
The deal encompasses the transfer of five major hospitals—Brookwood Baptist Medical Center, Princeton Baptist Medical Center, Walker Baptist Medical Center, Shelby Baptist Medical Center, and Citizens Baptist Medical Center—along with their affiliated physician practices and other operations.
Despite the change in ownership, Brookwood Baptist Health will continue operating as a joint venture with Baptist Health System.
Adding to the strategic depth of the agreement, Tenet’s subsidiary, Conifer Health Solutions, will embark on a new, ten-year contract to manage revenue cycle services for the Birmingham hospitals involved in this transaction.
The transaction, subject to customary regulatory approvals and closing conditions, is slated for completion in the fall of 2024.