Tenet forms joint venture with Baptist Health System in Alabama, merges 5 hospitals
Though Baptist had been nonprofit system, the new company will run as a for-profit business
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Hospital giant Tenet Healthcare Corp. on Sunday said it has formed a joint venture with the Baptist Health System in Birmingham, Alabama. Under terms of the deal, the joint venture includes all four of Baptist's hospitals as well as the Brookwood Medical Center, a Tenet hospital.
Monetary terms of the deal were not announced.
Baptist's Citizens Baptist Medical Center, Princeton Baptist Medical Center, Shelby Baptist Medical Center and Walker Baptist Medical Center will form a new organization with Brookwood, though officials did not say what the new system would be called.
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The new system would serve a combined 1,700 beds and employ 7,000 workers, 1,500 of those being physicians.
In addition to the hospitals, the new system would include nine outpatient centers and 68 clinics.
"This new partnership will strengthen our collective efforts throughout the region while also preserving and supporting the Baptist tradition and our faith-based approach to quality healthcare," Keith Parrott, chief executive officer of the new organization, said in the announcement.
Parrot was formerly Baptist's CEO.
According to reports, though Baptist had been nonprofit system, the new company will run as a for-profit business, like Tenet, which will own the majority stake in the company.
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