What You Should Know:
– Tenet Healthcare Corporation has entered into a definitive agreement to sell its majority ownership stake in Brookwood Baptist Health to Orlando Health for approximately $910M in cash, resulting in after-tax proceeds of around $790M for Tenet.
– The sale includes five hospitals – Brookwood Baptist Medical Center, Princeton Baptist Medical Center, Walker Baptist Medical Center, Shelby Baptist Medical Center, and Citizens Baptist Medical Center – along with affiliated physician practices and related operations.
– Tenet’s Conifer Health Solutions subsidiary will continue its partnership with the Birmingham hospitals by entering into a new, expanded ten-year revenue cycle management contract.
– Brookwood Baptist Health generated approximately $12M in pre-tax income and $60M in Adjusted EBITDA for the twelve months ending June 30, 2024. Tenet anticipates recording a pre-tax book gain of around $375M from the sale.