Dive Brief:
- Tenet's Brookwood Medical Center and all Baptist Health System hospitals in Alabama have announced a joint venture agreement.
- The arrangement will make Tenet the majority partner and manager of the system's operations.
- The combined system will have a total of more than 1,700 beds, 7,300 employees and 1,500 physicians.
Dive Insight:
The hospitals say the merger could be finalized in 60 to 90 days, although it's possible that other hospitals could decide to challenge it if concerned about the business impact. Noting that the venture will combine a for-profit and a not-for-profit hospital, hospital officials noted that it will be operated as a for-profit company, but remain committed to helping those in need with financial assistance and charity care.
Tenet's strategy has been to form partnerships with local nonprofit systems, so this deal is not unusual within the context of the company's growth plan. CEO Trevor Fetter told The Advisory Board that
"we want to be viewed by leading not-for-profits as their preferred partner when it comes to either services or ambulatory activities, or even hospital joint ventures."
"We are excited about joining with Tenet, to provide high-quality healthcare to communities across central Alabama," said Baptist CEO Keith Parrot, who will serve as CEO of the combined venture. "This partnership will strengthen our collective efforts and enhance healthcare across the region."
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