Tenet announces agreement to sell Birmingham hospitals and related operations; confirms latest FY24 Adjusted EBITDA outlook
DALLAS, August 05, 2024–(BUSINESS WIRE)–Tenet Healthcare Corporation (NYSE: THC) has entered into a definitive agreement with Orlando Health for the sale of tenet’s 70% majority ownership interest in Brookwood Baptist Health in Birmingham. for about $910 million (after– taxes about $790 million).
The operation will include five hospitals – Brookwood Baptist Medical Center, Princeton Baptist Medical Center, Walker Baptist Medical Center, Shelby Baptist Medical Center, Citizens Baptist Medical Center – as well as practices joint doctors and other related activities. Brookwood Baptist Health will remain a joint venture with Baptist Health System.
Additionally, under the agreement, Tenet’s Conifer Health Solutions subsidiary will enter into a new and extended ten-year contract to provide revenue cycle management services for Birmingham hospitals and operations. related to it.
“We are grateful for the partnership with Baptist Health System, which has enabled us to come together to improve the high-quality, compassionate care that Brookwood Baptist Health provides,” said Saum Sutaria, MD, Molula. -chairman and CEO, Tenet Healthcare. “Orlando Health is a respected, high-performing health care organization with more than a century of commitment to improving the health and well-being of the communities it serves. The integration of these hospitals into their network will advance health care for the greater Birmingham community.”
For the twelve months ended June 30, 2024, Tenet’s interest in the Brookwood Baptist Health joint venture generated net taxable income of approximately $12 million and non-controlling interest EBITDA of approximately about $60 million, excluding interest of about $2 million. and depreciation and amortization expenses of approximately $46 million. The company estimates to record a pre-tax book profit of approximately $375 million as a result of this prospective transaction.
The transaction is expected to be completed in the fall of 2024, subject to regulatory approvals, permits and closing conditions.
Tenet also confirmed its latest version of FY24 Adjusted EBITDA included in the second quarter 2024 earnings release.
About Tenet Healthcare
Tenet Healthcare Corporation (NYSE: THC) is a diversified healthcare services company based in Dallas. Our care delivery network includes United Surgical Partners International, the largest transportation platform in the country, operating ambulatory surgical centers and surgical hospitals. We also operate a national intensive care and specialty hospital, other outpatient facilities, a network of chartered physicians and a global business center in Manila, Philippines. Our subsidiary Conifer Health Solutions provides cash flow management and quality care services to hospitals, health systems, physician practices, employers and other customers. Across Tenet’s business, we are united by our mission to provide quality, compassionate care to the communities we serve. For more information, please visit www.tenethealth.com.
Warning Statement
This release contains “forward-looking statements” – that is, statements that relate to future events, not past events. In this context, forward-looking statements usually refer to the business’s expected future financial performance and financial position, and often contain words such as “anticipate,” “anticipate,” “take ,” “hello,” “rate,” “guess.” ,” “forex,” “intend,” “plan,” “predict,” “project,” “seek,” “see,” “anticipate,” or “will.” Forward-looking statements by their nature refer to Certain uncertainties that could cause the Company’s actual results to differ materially from those expressed in the Company’s forward-looking statements include, but are not limited to, the following: presented under “Forward-Looking Statements” and “Risk Factors” in our Form 10-K for the year ended December 31, 2023, and other filings with the Securities and Exchange Commission.
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