Tenet Healthcare (NYSE: THC) will sell its majority ownership in Brookwood Baptist Health in Birmingham, Alabama, for about $910 million to not-for-profit healthcare organization Orlando Health, the U.S. hospital operator said on Monday.
The sale of its 70% interest includes five hospitals, affiliated physician practices, and other related operations.
Tenet Healthcare (NYSE: THC) expects to record a pre-tax gain of about $375 million from the transaction, likely to be completed in the fall of 2024.
In 2015, the company signed an agreement with Baptist Health System to gain access to Shelby Baptist, Citizens Baptist, Princeton Baptist, and Walker Baptist medical centers as well as 77 primary and specialty care clinics.
Brookwood Baptist Health will remain a joint venture with Baptist Health System, Tenet added.
Tenet’s Conifer Health Solutions unit will enter into a new and expanded 10-year contract to provide management services for Birmingham hospitals and related operations as part of the deal.
(Source: Reuters)
Edward Cooke is a financial analyst, freelance writer, and editor. He has six years of experience in financial journalism. He has an in-depth understanding of equities markets, tracking major indices and providing real-time analysis on stock price movements, corporate earnings, and market sentiment.
