Birmingham, Ala.-based Baptist Health System has signed an exclusive, non-binding letter of intent to form a jointly owned company with 645-bed Brookwood Medical Center in Birmingham, a subsidiary of Dallas-based Tenet Healthcare.
Through the joint venture, Baptist Health's four hospitals and Brookwood would join together to form a new organization with 1,700 licensed beds, 7,300 employees and roughly 1,500 affiliated physicians.
"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," said Keith Parrot, CEO of Baptist Health. "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."
CEO of Tenet's southern region Garry Gause shared Mr. Parrot's enthusiasm about the potential transaction. "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 BrookwoodMedicalCenter," he said.
With the letter of intent signed, the organizations will go through a due diligence period, with the intention of signing a definitive agreement. Once a final agreement is reached, the joint venture could be formed as early as next spring.
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