Tenet Healthcare will sell off five Alabama hospitals to Orlando Health in a $910 million cash deal.
The company is selling its 70% ownership stake in Birmingham-based Brookwood Baptist Health, and the deal includes Brookwood Baptist Medical Center, Princeton Baptist Medical Center, Walker Baptist Medical Center, Shelby Baptist Medical Center and Citizens Baptist Medical Center, according to an announcement.
The deal will also include affiliated physicians and other related operations. After the sale, the system will remain a joint venture with Baptist Health System, Tenet said.
The five hospitals include 1,700 beds along with more than 70 primary and specialty care clinics, according to a release from Orlando Health. Brookwood Baptist Health includes 1,700 affiliated physicians and more than 7,300 employees.
"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," said Saum Sutaria, M.D., CEO of Tenet Healthcare, in the release.
"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," Sutaria added.
Also as part of the deal, Tenet's Conifer Health Solutions has entered into a new and expanded arrangement to provide revenue cycle management services to Brookwood Baptist Health over the next decade.
Tenet expects the deal to generate $790 million in proceeds after taxes. The team expects the transaction to close this fall, according to the release.
At closing, the system will be renamed as Baptist Health, Orlando Health said.
"There is a need and opportunity for a private, not-for-profit healthcare system in this market," said David Strong, president and CEO of Orlando Health. "We believe this is a new day in healthcare for our organizations and look forward to making Brookwood Baptist the best healthcare system in Alabama."