Orlando Health buying Tenet Healthcare’s ownership stake in Brookwood Baptist Alabama hospitals

In a deal announced today, Orlando Health is buying the majority stake in Brookwood Baptist hospitals including, clockwise from upper left, Walker Baptist, Brookwood Baptist, Shelby Baptist and Princeton Baptist. (Brookwood Baptist Health)
Tenet Healthcare and Orlando Health today announced a $910 million deal that will see Orlando Health take over Tenet’s 70% majority stake in Brookwood Baptist Health hospitals in central Alabama.
Included in the deal are Brookwood Baptist Medical Center and Princeton Baptist Medical Center in Birmingham, Walker Baptist Medical Center in Jasper, Shelby Baptist Medical Center in Alabaster and Citizens Baptist Medical Center in Talladega, along with affiliated physician practices and other related operations.
The move will see day-to-day operations of the five hospitals move from the for-profit, Dallas-based Tenet to the not-for-profit, Orlando-based Orlando Health.
Baptist Health System will remain a partner, and the new entity will go by the name Baptist Health after the expected closing of the deal this fall.
“We are honored to further Brookwood Baptist Health’s mission of extending the healing ministry of Christ. There is a need and opportunity for a private, not-for-profit healthcare system in this market,” said David Strong, president and CEO Orlando Health. “We believe this is a new day in health care for our organizations and look forward to making Brookwood Baptist the best health care system in Alabama.”
Brookwood Baptist Health has more than 1,700 beds, more than 70 primary and specialty care clinics, approximately 1,500 affiliated physicians and more than 7,300 employees.
Orlando Health is a 3,487-bed, private, not-for-profit system that serves the Southeast and Puerto Rico. It was founded more than 100 years ago and includes 17 hospitals, 10 freestanding emergency rooms and nine Hospital Care at Home programs. An additional four hospitals and six freestanding emergency rooms are in development.
The system also includes seven partner hospitals and emergency departments in Puerto Rico and 10 specialty institutes in aesthetic and reconstructive surgery, cancer, colon and rectal, digestive health, heart and vascular, neuroscience, orthopedics, rehabilitation, weight loss and bariatric surgery.
Orlando Health also includes skilled nursing facilities, an in-patient behavioral health facility under the management of Acadia Healthcare and more than 375 outpatient facilities that include physician clinics, imaging and laboratory services, wound care centers, home health care services in partnership with LHC Group and urgent care centers in partnership with CareSpot Urgent Care.
More than 4,950 physicians, representing more than 100 medical specialties and subspecialties, have privileges across the Orlando Health system, which employs more than 29,000 team members and more than 1,500 physicians.
“We are pleased to have Orlando Health join Brookwood Baptist Health as a majority and managing partner,” said Amy Allen, president and CEO of Baptist Health System. “They have a proven track record in delivering high-quality health care services and are well positioned to invest in our community. We are excited to welcome them to Birmingham and to jointly support the faith-based mission of Brookwood Baptist Health.”
Thibaut van Marcke will lead the new Baptist Health in Alabama for Orlando Health. Marcke currently serves as senior vice president of Orlando Health Southeast Region and president of Orlando Health Dr. P. Phillips Hospital.
Brookwood Baptist Health was formed in 2015 following a merger agreement between Tenet Healthcare and Baptist Health System.
In addition to the $910 million cash deal, Tenet’s Conifer Health Solutions subsidiary will enter into a new and expanded 10-year contract to provide revenue cycle management services for the Birmingham hospitals and related operations.
“We are grateful for the partnership with Baptist Health System, which has enabled us to collectively enhance the high-quality, compassionate care that Brookwood Baptist Health offers,” Tenet CEO and Chairman Saum Sutaria said. “Orlando Health is an esteemed, high-performing health care 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 health care for the greater Birmingham communities.”
The deal is the latest in a changing hospital ownership landscape. In June, UAB Health System announced it is purchasing Ascension St. Vincent’s Alabama hospitals and facilities.