Orlando Health buys 5 Alabama hospitals for $910M
The sale of five Tenet Healthcare hospitals in Alabama has been finalized in a $910 million cash deal, the company announced this week. The hospitals make up the Brookwood Baptist Health network.
Brookwood Baptist Medical Center, Citizens Baptist Medical Center, Princeton Baptist Medical Center, Shelby Baptist Medical Center and Walker Baptist Medical Center will now be operated by nonprofit Orlando Health, which announced the purchase in August.
Tenet owned a 70% controlling stake in the five Birmingham-area hospitals, all of which are part of the Baptist Health System. The shift to Orlando Health will change the business model of Brookwood, as Tenet was for-profit.
“This is a great day for Brookwood Baptist Health and Orlando Health,” Thibaut van Marcke, senior vice president of Orlando Health’s Alabama region, said in a statement. “Our partnership offers a new day in healthcare for central Alabamians. With our proven track record of successful expansion lifting the care at our partner hospitals, we are dedicated to making this healthcare system the best in the state and beyond.”
Faith-based Baptist Health System will retain partial ownership of Brookwood, despite Orlando Health taking over day-to-day operations.
“We’re excited to have Orlando Health as a partner,” Amy Allen, president and CEO of Baptist Health System, said in a statement. “Their dedication to excellence and improving patient care has been repeatedly recognized with national honors from leading quality and patient-safety organizations. This is a great day for our patients, our physicians, our team and our community.”
The transaction will be lucrative for Tenet. The company said it expects a pre-tax gain of $375 million as a result of offloading the Brookwood network.
Orlando Health also acquired bankrupt Steward hospitals
Orlando Health has been busy in recent months. In addition to this purchase of Brookwood Baptist Health, the Florida-based nonprofit also scooped up three former Steward Health Care facilities located in its home state, as part of Steward’s ongoing bankruptcy liquidation. That $439 million deal is expected to close later this month.
In 2023, Orlando Health had an operating revenue $6.1 billion. That number is trending upward for this year.
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