Baptist Health System and Tenet to Create New Healthcare Network

System will deliver high-quality care at five hospitals and 77 outpatient facilities across central Alabama

Tuesday, June 23, 2015 8:00 am CDT

Dateline:

BIRMINGHAM, Ala. & DALLAS

Public Company Information:

NYSE:
THC
"We are excited about joining with Tenet to provide high-quality healthcare to communities across central Alabama"

BIRMINGHAM, Ala. & DALLAS--(BUSINESS WIRE)--Baptist Health System and Tenet Healthcare Corporation (NYSE:THC) have signed a definitive agreement to create a joint venture that will operate a healthcare network serving Birmingham and central Alabama. The new network will include all Baptist Health System hospitals, Tenet’s Brookwood Medical Center and each organization’s related businesses. Under the joint venture arrangement, Tenet will be the majority partner and will manage the network’s operations.

The new company will unite Baptist Health System’s four hospitals – Citizens Baptist Medical Center, Princeton Baptist Medical Center, Shelby Baptist Medical Center and Walker Baptist Medical Center – with Brookwood Medical Center. Together, the new system will have more than 1,700 licensed beds; 77 outpatient and physician office facilities, including clinics delivering primary and specialty care; approximately 7,300 employees; and approximately 1,500 affiliated physicians.

“We are excited about joining with Tenet to provide high-quality healthcare to communities across central Alabama,” said Keith Parrott, chief executive officer of Baptist Health System. “This partnership will strengthen our collective efforts and enhance healthcare across the region while also preserving the Baptist name and tradition, maintaining our Christian values and identity, and supporting our faith-based approach to healthcare.”

“We look forward to the opportunity to partner with such a highly regarded organization as Baptist Health System,” said Britt T. Reynolds, president of hospital operations at Tenet. “We will not only continue Baptist’s 92-year mission to care for residents across central Alabama, but together our two organizations will provide enhanced access to a wide range of healthcare resources for the communities we serve. This broad, new network will enable our institutions to better navigate the changing landscape of healthcare today and create new, innovative models for patient care.”

Parrott will become CEO of the joint venture, which will be overseen by a board composed of five representatives from Baptist and five representatives from Tenet.

The transaction, which is subject to customary closing conditions and regulatory approvals, is expected to be finalized in the third quarter of 2015.

About Tenet Healthcare

Tenet Healthcare Corporation is a diversified healthcare services company with more than 125,000 employees united around a common mission: to help people live happier, healthier lives. Through its subsidiaries, partnerships and joint ventures, including United Surgical Partners International (USPI), the company operates 80 general acute care hospitals, 18 short-stay surgical hospitals and over 400 outpatient centers in the United States, as well as nine facilities in the United Kingdom. Tenet’s Conifer Health Solutions subsidiary provides technology-enabled performance improvement and health management solutions to hospitals, health systems, integrated delivery networks (IDN), physician groups, self-insured organizations and health plans. Tenet also operates six health plans. For more information, please visit www.tenethealth.com.

The terms "THC," "Tenet Healthcare Corporation," "the company," "we," "us" or "our" refer to Tenet Healthcare Corporation or one or more of its subsidiaries or affiliates as applicable.

About Baptist Health System

Baptist Health System, a not-for-profit 501(c) corporation and one of the largest health systems in Alabama, owns four hospital campuses, including Princeton (in Birmingham), Shelby (in Alabaster), Walker (in Jasper) and Citizens (in Talladega) as well as the largest network of employed primary- and specialty-care physicians providing coordinated care across central Alabama. The system includes graduate medical education programs and active clinical research in multiple specialties. Baptist Health System is committed to providing compassionate, high-quality, innovative health care and empowering its communities to achieve their best health. Baptist Health System is a ministry of the churches of the Birmingham Baptist Association, whose representatives elect the Board of Trustees. It was founded in 1922 by a group of local Baptist congregations. For more information please visit BaptistHealthAlabama.org.

This release contains “forward-looking statements” – that is, statements that relate to future, not past, events. In this context, forward-looking statements often address our expected future business and financial performance and financial condition, and often contain words such as “expect,” “assume,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “see,” or “will.” Forward-looking statements by their nature address matters that are, to different degrees, uncertain. Particular uncertainties that could cause our actual results to be materially different than those expressed in our forward-looking statements include, but are not limited to, the factors disclosed under “Forward-Looking Statements” and “Risk Factors” in our Form 10-K for the year ended December 31, 2014, and in our quarterly reports on Form 10-Q, periodic reports on Form 8-K and other filings with the Securities and Exchange Commission. The information contained in this release is as of the date hereof. The company assumes no obligation to update forward-looking statements contained in this release as a result of new information or future events or developments.

Tenet uses its company website to provide important information to investors about the company including the posting of important announcements regarding financial performance and corporate developments.

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Contact:

For Tenet:
Corporate Communications
Donn Walker, 469-893-2640
mediarelations@tenethealth.com
or
Investor Relations
Brendan Strong, 469-893-6992
investorrelations@tenethealth.com
or
For Baptist:
Corporate Communications
Kate DeWitt Darden, 205-715-5196
Kate.Darden@bhsala.com