Orlando Health to Acquire Five Alabama Hospitals for $910 Million

Tenet Healthcare Corporation (NYSE: THC) has agreed to sell a 70% majority ownership interest in Brookwood Baptist Health in Birmingham, Alabama, to Orlando Health for approximately $910 million in cash. After-tax proceeds are estimated to be around $790 million. The transaction encompasses five hospitals: Brookwood Baptist Medical Center, Princeton Baptist Medical Center, Shelby Baptist Medical Center, Walker Baptist Medical Center, and Citizens Baptist Medical Center, along with affiliated physician practices and related operations.

The agreement also includes a new ten-year contract for Tenet's Conifer Health Solutions subsidiary to provide revenue cycle management services for the Birmingham hospitals. The transaction is expected to close in the fall of 2024, pending regulatory approvals, clearances, and other closing conditions. Tenet expects to record a pre-tax book gain of approximately $375 million from this sale. For the fiscal year ending June 30, 2024, Tenet's equity interest in the joint venture generated pre-tax income of around $12 million and adjusted EBITDA less non-controlling interest of about $60 million.