Baptist Health System Signs Letter of Intent with Tenet Healthcare
Baptist Health System announced Monday that it has signed an exclusive, non-binding Letter of Intent with a subsidiary of Tenet Healthcare Corporation, the parent company of Brookwood Medical Center, to form a new, jointly-owned company that will include all Baptist Health System hospitals, Brookwood Medical Center, and their related businesses. The parties have initiated an exploratory period of due diligence, which is intended to result in a definitive agreement.
The new company would unite Baptist Health System's four hospitals -- Citizens Baptist Medical Center, Princeton Baptist Medical Center, Shelby Baptist Medical Center and Walker Baptist Medical Center -- with Tenet's Brookwood Medical Center. Together, the new system would have more than 1,700 licensed beds and include 60 primary and specialty care clinics, approximately 7,300 employees and approximately 1,500 affiliated physicians.
"We are excited to engage in an exclusive dialogue about developing a joint venture with Tenet Healthcare," said Keith Parrott, CEO of Baptist Health System. "A primary reason to enter into a partnership with Tenet is its track record partnering with and growing faith-based institutions and allowing them to continue operating with a faith-based mission and focus. At the same time, Tenet can offer resources such as sustainable access to capital, a strong history of operating well-run hospitals and access to its existing purchasing contracts. This potential partnership represents an opportunity to strengthen our collective efforts and enhance healthcare across central Alabama while preserving and honoring the Baptist name, maintaining our Christian values, and supporting our faith-based approach to healthcare."
"Tenet sees great benefit in a partnership with Baptist Health System's dedicated group of health professionals," said Garry Gause, chief executive officer, Southern Region at Tenet Healthcare. "This proposed partnership offers the opportunity to improve healthcare delivery to communities throughout central Alabama while preserving the remarkable legacies of Baptist Health System and Brookwood Medical Center. The new organization will enable our institutions to better navigate the changing landscape of healthcare today, and to meet the growing demands for quality care in Alabama tomorrow."
Once a final definitive agreement is reached, the new joint venture could be formed as early as next spring. The parties do not plan to provide additional details until such time as a definitive agreement is reached.