Contact: Kate Darden, BHS Vice President, Marketing
Julie B. Wall, Markstein
FOR IMMEDIATE RELEASE
BIRMINGHAM, Ala. – Dec. 15, 2014 - Baptist Health System today announced that it has signed an exclusive, non-binding Letter of Intent (LOI) with a subsidiary of Tenet Healthcare Corporation (NYSE: THC), 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 77 primary and specialty care clinics, approximately 7,300 employees and approximately 1,500 affiliated physicians.
The partnership would build upon the strengths of both Baptist Health System and Brookwood Medical Center, and give the expanded healthcare network access to a sustainable source of capital and the possibility of significant investments in new equipment, facility upgrades and strategic initiatives in the future, creating meaningful opportunities for innovations in care delivery.
“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.
About Baptist Health System
Baptist Health System, a not-for-profit 501(c) corporation and one of the largest health systems in Alabama, owns four hospital campuses, including Princeton (in Birmingham), Shelby (in Alabaster), Walker (in Jasper) and Citizens (in Talladega) as well as the largest network of employed primary- and specialty-care physicians providing coordinated care across central Alabama. The system includes graduate medical education programs and active clinical research in multiple specialties. Baptist Health System is committed to providing compassionate, high-quality, innovative health care and empowering its communities to achieve their best health. Baptist Health System is a ministry of the churches of the Birmingham Baptist Association, whose representatives elect the Board of Trustees. It was founded in 1922 by a group of local Baptist congregations. For more information please visit BaptistHealthAlabama.org.
About Tenet Healthcare
Tenet Healthcare Corporation is a national, diversified healthcare services company with more than 105,000 employees united around a common mission: to help people live happier, healthier lives. The company operates 80 hospitals, more than 200 outpatient centers, six health plans and Conifer Health Solutions, a leading provider of healthcare business process services in the areas of revenue cycle management, value based care and patient communications. For more information, please visit www.tenethealth.com.
About Brookwood Medical Center
Brookwood Medical Center is a 645-bed full service acute care hospital serving the Birmingham community. Widely recognized for its cardiology, oncology, mental health and orthopedic programs, Brookwood has a medical staff comprised of more than 800 physicians and a workforce numbering 3,000. Brookwood’s main campus is home to the Women’s Center, Alabama’s first women’s hospital, which offers specialized maternity and neonatal services with five-star amenities. The Brookwood Care Network includes more than 60 affiliated physicians offering primary and specialty care. For more information, please visit bwmc.com.