Orlando Health Acquires Majority Stake in Five Birmingham Hospitals for $910 Million

In a strategic move, Tenet Healthcare Corp. has announced the sale of its 70% majority ownership interest in Brookwood Baptist Health to Orlando Health for approximately $910 million in cash. This acquisition encompasses five prominent hospitals in the Birmingham area along with their associated physician practices and operations.

The hospitals involved in this transaction include Brookwood Baptist Medical Center, Princeton Baptist Medical Center, Walker Baptist Medical Center, Shelby Baptist Medical Center, and Citizens Baptist Medical Center.

Orlando Health, a private, not-for-profit healthcare organization, will take charge of the daily operations of Brookwood Baptist Health in collaboration with the Baptist Health System. Despite the change in ownership, the Baptist Health System will continue its role as a faith-based organization and remain part of the partnership. Post-transaction, the system will be renamed Baptist Health.

Leading the charge for Orlando Health in Alabama will be Thibaut van Marcke, currently serving as the senior vice president of Orlando Health Southeast Region and president of Orlando Health’s Dr. P. Phillips Hospital.

The transaction, which is expected to close this fall, is contingent on regulatory approvals, clearances, and closing conditions. As part of the deal, Tenet’s Conifer Health Solutions subsidiary will enter into an expanded 10-year contract to provide revenue cycle management services for the hospitals.

Saum Sutaria, CEO of Tenet Healthcare, expressed his gratitude for the collaboration with Baptist Health System, highlighting the enhanced high-quality, compassionate care provided by Brookwood Baptist Health. He praised Orlando Health as an esteemed, high-performing healthcare organization, confident that the integration of these hospitals will advance healthcare for the greater Birmingham communities.

David Strong, CEO of Orlando Health, emphasized the need and opportunity for a private, not-for-profit healthcare system in the Birmingham market. He expressed pride in furthering Brookwood Baptist Health’s mission of extending the healing ministry of Christ, looking forward to making Brookwood Baptist the premier healthcare system in Alabama.

Brookwood Baptist Health is a robust network consisting of five hospitals across central Alabama, offering more than 1,700 beds, over 70 primary and specialty care clinics, about 1,500 affiliated physicians, and employing more than 7,300 individuals.