Tenet Healthcare (THC) Sells Five Hospitals in the Miami-Dade/Southern Broward Area to Steward Health Care

June 17, 2021 9:12 AM EDT

Today, Steward Health Care System, LLC (Steward) and Tenet Healthcare Corporation (NYSE: THC) announced that they 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 (USPI) in these markets will remain with Tenet and are not included in the transaction.

Founded by Ralph de la Torre, MD, who grew up in Florida as the son of Cuban immigrants, Steward Health Care’s physician-controlled and -led model was built to unlock access to the highest-quality care at a sustainable cost. Steward is committed to providing personalized, ongoing medical services that improve patients’ physical, emotional, and mental wellbeing. As integrated care institutions, Steward’s hospitals function on a community model, engaging with local employees and community groups as partners.

“Throughout the COVID pandemic, we have been reminded of the critical role caregivers play in the health and wellness of our patients and our communities. We are eager to offer both patients and healthcare providers in South Florida the full support of the Steward network as we all seek to emerge stronger and healthier from the pandemic,” said Dr. de la Torre. “As a Floridian with close family ties to the area, I am proud of Steward’s significant investment in the people of South Florida, whose tight-knit communities and vibrant diversity have always represented the very best of American culture.”

In addition to Dr. de la Torre, several of Steward’s senior leaders have close ties to South Florida. Those include Dr. Octavio Diaz, Steward’s Chief Medical Officer, who previously practiced in South Florida and worked at several of the acquired facilities, and Mr. Rubén J. King-Shaw, Jr., Steward’s Chief Strategy Officer, who was the COO for Neighborhood Health Partnership before becoming Florida’s Secretary of the Agency for Health Care Administration under Governor Jeb Bush.

“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 A. Rittenmeyer, Tenet’s Executive Chairman 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.”

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.

“Steward’s physician-led model was built to put care back in the hands of the caregivers,” said Dr. Shetty. “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.”

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. Steward’s extensive network of hospitals, urgent care centers, skilled nursing facilities and substantial behavioral health services annually serves more than 12.3 million patients across the United States, Colombia and Malta through its more than 5,500 providers and 43,000 health care professionals.

Serious News for Serious Traders! Try Premium Free!

You May Also Be Interested In

Related Categories

Corporate News, Mergers and Acquisitions, Spinoffs

Related Entities

Definitive Agreement