Steward Health Care has entered an agreement to acquire five hospitals and associated operations from Tenet Healthcare for about $1.1bn.
The agreement covers five hospitals and their related physician practices located in the Miami-Dade and Southern Broward counties in Florida, US.
These hospitals are Coral Gables Hospital, Florida Medical Center, Hialeah Hospital, North Shore Medical Center and Palmetto General Hospital.
As per the terms of the deal, Tenet subsidiary Conifer Health Solutions will continue offering revenue cycle management services to the five hospitals after the closing of the acquisition.
Tenet ambulatory facilities, which are managed by United Surgical Partners International (USPI), in these regions are not part of the agreement.
Established in 2010, Steward Health is a physician-owned healthcare network of 39 hospitals, along with urgent care centres, skilled nursing facilities and behavioural health services.
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It has more than 5,500 providers and 43,000 healthcare professionals.
With the acquisition of Tenet hospitals, Steward Health expects to enhance access to care in the South Florida region.
Steward North America president Sanjay Shetty said: “Steward’s physician-led model was built to put care back in the hands of the caregivers.
“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 deal will take Steward Health’s total number of hospitals to 44 globally and more than double its footprint in Florida.
Currently, the company operates Melbourne Regional Medical Center, Rockledge Regional Medical Center and Sebastian River Medical Center in Florida.
Tenet Healthcare executive chairman and CEO Ron Rittenmeyer said: “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.”
The acquisition is subject to regulatory approvals and customary closing conditions. It is expected to complete in the third quarter of this year.