Tenet Healthcare Corporation THC has entered into a new joint venture (JV) agreement with Baptist Health System. The JV pertains to the operation of a healthcare network to cater to patients in Birmingham and central Alabama.
The new network will comprise Tenet’s Brookwood Medical Center, all the hospitals of Baptist Health and the related businesses of both. The combination will have a total of more than 1700 licensed beds, 77 outpatient and physician office facilities, nearly 7300 employees and 1500 affiliated physicians. However, Tenet will be the majority interest holder under the JV and will administer the network’s operations.
The transaction is pending regulatory approvals and is scheduled to complete in the third quarter of 2015.
Tenet is focused on delivering enhanced healthcare services through its diversified services. On the other hand, Baptist Health is one of the largest health systems in Alabama. The company is also renowned as the largest network of employed primary and specialty-care physicians providing coordinated care across central Alabama. The collaboration not only satisfies Tenet’s motives of enhancing healthcare but also lays the ground for increasing its membership base.
With the gradual change in the healthcare requirements of patients and health plan members, health care companies are striving to enhance their services. At this juncture, the JV will help both parties utilize each others’ resources to provide a wide array of improved services.
Tenet currently carries a Zacks Rank #2 (Buy). Other stocks in the hospital sector include Acadia Healthcare Company, Inc. ACHC, MEDNAX, Inc. MD and Universal Health Services Inc. UHS. All three stocks have the same Zacks Rank as Tenet.
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