Tenet Healthcare Corporation announced that it and Steward Health Care System, LLC (Steward) have signed a definitive agreement regarding the acquisition by Steward of Tenet’s five hospitals and related hospital operations in the Miami-Dade and Southern Broward counties.
The transaction is Steward’s first acquisition since finalizing full physician control and leadership of the organization in the summer of 2020. Under the terms of the agreement, Steward will purchase five hospitals and their associated physician practices from Tenet for approximately $1.1 billion. The hospitals included in the sale are Coral Gables Hospital, Florida Medical Center, Hialeah Hospital, North Shore Medical Center and Palmetto General Hospital. The agreement also provides that Tenet’s Conifer Health Solutions subsidiary will continue to provide revenue cycle management services to the five hospitals following completion of the transaction. Tenet’s ambulatory facilities operated by United Surgical Partners International in these markets will remain with Tenet and are not included in the transaction.
Steward’s operations will be directed by Sanjay Shetty, MD, president of Steward North America. Under Dr. Shetty, Steward Health Care is committed to offering employment to all hospital employees in good standing when the transaction is complete, with privileges continuing for all physicians in good standing on the medical staff. The transaction is anticipated to close in the third quarter of this year, subject to regulatory approvals and customary closing conditions.
This transaction will bring Steward’s total hospital count to 44 worldwide and more than double its presence in Florida as the five new facilities join Melbourne Regional Medical Center, Rockledge Regional Medical Center, and Sebastian River Medical Center on Florida’s Space Coast.