The deal more than doubles Steward's Florida hospital footprint, and cuts Tenet's Florida hospital stake in half.
Steward Health Care System, LLC will buy five hospitals and their physician practices in the Miami and Fort Lauderdale area from Tenet Healthcare Corporation for $1.1 billion, the two for-profit health systems announced jointly Thursday.
The hospitals are Coral Gables Hospital, Florida Medical Center, Hialeah Hospital, North Shore Medical Center and Palmetto General Hospital. The acquisition halves investor-owned Tenet's hospital stake in Florida, with five of the 10 hospitals remaining with Tenet all located in nearby Palm Beach County.
Tenet's Conifer Health Solutions subsidiary will provide revenue cycle management for the five hospitals after the deal is finalized. Tenet will keep its ambulatory facilities operated by United Surgical Partners International in these markets.
Steward's Florida operations will be directed by Sanjay Shetty, MD, president of Steward North America.
Steward Founder Ralph de la Torre, MD, who grew up in Florida as the son of Cuban immigrants, said the physician-owned health system was "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."
"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," de la Torre said.
When the deal is finalized, Steward will more than double its footprint in Florida as the five new hospitals join Melbourne Regional Medical Center, Rockledge Regional Medical Center, and Sebastian River Medical Center on Florida's Treasure Coast and Space Coast.
“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.”
Ralph de la Torre, MD, founder, Steward Health Care System, LLC.
John Commins is a content specialist and online news editor for HealthLeaders, a Simplify Compliance brand.
KEY TAKEAWAYS
The hospitals are Coral Gables Hospital, Florida Medical Center, Hialeah Hospital, North Shore Medical Center and Palmetto General Hospital.
The acquisition halves Tenet's hospital stake in Florida, with five of 10 hospitals remaining with Tenet all located in Palm Beach County.
Under the terms of the deal, Tenet's Conifer Health Solutions subsidiary will continue to provide revenue cycle management services for the five hospitals after the deal is finalized.
Tenet will keep its ambulatory facilities operated by United Surgical Partners International in these markets.
Steward's Florida operations will be directed by Sanjay Shetty, MD, president of Steward North America.