Tenet Healthcare is selling its majority stake in Brookwood Baptist Health to Florida-based Orlando Health in a $910 million cash deal.
The transaction is expected to close this fall and involves five Alabama hospitals: Brookwood Baptist Medical Center, Princeton Baptist Medical Center, Walker Baptist Medical Center, Shelby Baptist Medical Center and Citizens Baptist Medical Center, as well as affiliated physician practices and other operations, according to a Monday news release.
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Birmingham, Alabama-based Brookwood Baptist would continue the joint venture it formed with Baptist Health System in 2015, according to the release. Orlando Health, a 17-hospital nonprofit system, said in a separate release that Brookwood would transition to the Baptist name post-closing.
Tenet said its Conifer Health Solutions has agreed to a 10-year contract to provide revenue cycle management services for the hospitals and related facilities.
Dallas-based Tenet estimated its 70% stake in Brookwood Baptist generated $12 million in pre-tax income during the 12 months ended June 30.
For-profit Tenet has sold several hospitals this year. In March, Tenet sold four hospitals to University of California Irvine's health system in an $800 million deal. A month prior, Tenet closed a $2.4 billion deal to sell three South Carolina hospitals to Novant Health.
