Tenet Healthcare To Sell 70% Stake In Brookwood Baptist Health For $910 Mln In Cash; Stock Down

(RTTNews) - Tenet Healthcare Corp. (THC), a healthcare company, announced on Monday that it has inked a deal with Orlando Health to sell its 70 percent majority ownership interest in Brookwood Baptist Health in Birmingham for around $910 million in cash or after-tax proceeds of approximately $790 million.

The deal includes five Birmingham hospitals and related operations.

Tenet said its Conifer Health Solutions will sign a new and expanded 10-year contract to provide revenue cycle management services for the Birmingham hospitals.

Tenet Healthcare expects a pre-tax book gain of around $375 million as a result of this transaction, to be closed in the fall of 2024.

The transaction 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 affiliated physician practices and other related operations.

Brookwood Baptist Health will remain a joint venture with Baptist Health System.

For the full year to June 30, Tenet's equity interest in the Brookwood Baptist Health joint venture had posted pre-tax income of around $12 million.

Tenet also reaffirmed the full year 2024 adjusted EBITDA outlook.

THC was trading down by 5.14 percent at $134.46 in the pre-market trade on the New York Stock Exchange.