Dallas-based Tenet Healthcare will sell five hospitals in Florida to Dallas-based Steward Health Care for $1.1 billion, the organizations said June 16.
Under the definitive agreement, Steward will buy five hospitals and associated physician practices in Miami-Dade and Southern Broward counties. The transaction is expected to close in the third quarter of this year.
The five Florida hospitals included in the sale are Coral Gables Hospital, Florida Medical Center in Lauderdale Lakes, Hialeah Hospital, North Shore Medical Center in Miami and Palmetto General Hospital in Hialeah.
"As community anchors, our five hospitals in the Miami-Dade and Southern Broward counties have earned the trust of patients and physicians alike," said Ron Rittenmeyer, Tenet's executive chair and CEO. "We are pleased they will become part of Steward Health Care as the Company’s first South Florida network, and we are confident they will continue to thrive."
Under the agreement, Tenet's revenue cycle subsidiary Conifer Health Solutions will continue to provide revenue cycle services to the hospitals when the transaction is complete. Tenet's ambulatory facilities in the markets are not included in the transaction.
When the transaction is finalized, Steward will more than double its presence in Florida and have 44 hospitals total.
Steward said it is committed to offering employment to all staff in good standing when the transaction is complete.
"Steward's physician-led model was built to put care back in the hands of the caregivers," Sanjay Shetty, MD, president of Steward North America, said in the news release. "We are looking forward to focusing on investments in infrastructure and new technology, as well as growing the physician network to make it even easier for patients and health care professionals to access and provide the care they deserve."