Key Highlights
- Tenet Healthcare sells 70% majority ownership in Brookwood Baptist Health to Orlando Health for $910 million.
- Transaction includes five hospitals and affiliated physician practices in Birmingham, Alabama.
- Conifer Health Solutions enters a ten-year expanded contract for revenue cycle management services.
- Estimated $375 million pre-tax book gain anticipated from the transaction.
Source: Business Wire
Notable Quote
- “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.” — Saum Sutaria, M.D., Chairman and CEO at Tenet Healthcare
SoHC's Take
This strategic divestiture by Tenet Healthcare underscores the company’s focus on optimizing its portfolio and reinvesting in core operations. The significant cash inflow from this transaction, coupled with the ongoing relationship through Conifer Health Solutions’ expanded contract, positions Tenet well for future growth. Meanwhile, Orlando Health’s acquisition of Brookwood Baptist Health represents a substantial enhancement to their network, promising to elevate healthcare standards across Birmingham. This deal is poised to create a more integrated and efficient healthcare delivery system, benefiting all stakeholders involved.
