Tenet Healthcare Corp. has signed an agreement to acquire 222-bed Lloyd Noland Hospital in Birmingham, Ala., for $47 million.
The deal is expected to close in September, Tenet said.
Tenet officials said the Santa Barbara, Calif.-based company intends to create a statewide network of hospitals in Alabama that will rival 11-hospital Baptist Health System, the state's largest system, based in Birmingham. Tenet owns 75 hospitals and related businesses in 13 states.
Three years ago, Tenet linked its own 515-bed Brookwood Medical Center with Lloyd Noland and 271-bed Medical Center East to form Alabama Health Services, a for-profit shared services joint venture.
AHS is talking with 72-bed St. Clair Regional Hospital, Pell City, and 57-bed Blount Memorial Hospital, Oneonta, about joining the venture, a spokesman said.
Tenet also is purchasing Lloyd Noland's two-thirds interest in Health Advantage Plans, an HMO. Earlier this year, AHS purchased a one-third interest in the HMO.
In June, Tenet and Baptist Health engaged in a vigorous competition featuring attack advertisements to acquire Shelby Medical Center, a 228-bed public hospital in Alabaster. Voters in Shelby County chose Baptist to purchase the hospital in a referendum (June 10, p. 8).