Back in June 2020, a management group of Steward Health Care physicians acquired a controlling stake in the health system and assumed ownership from its founding owner, Cerberus Capital Management. It was a significant move; one of the largest privately owned hospital chains in the United States became physician-owned. And now, Steward announced this week it is acquiring a portfolio of five hospitals from Tenet Healthcare Corporation (NYSE: THC) in Florida for $1.1 billion. It is the first acquisition for Steward Health since finalizing full physician control and leadership of the organization.
The five hospitals included in the sale are Coral Gables Hospital (245 beds), Hialeah Hospital (350 beds), Palmetto General Hospital (368 beds), Florida Medical Center (434 beds) and North Shore Medical Center (284 beds). Collectively, the hospitals have approximately $933 million in revenue and $122 million in EBITDA for the 12 months ended March 31, 2021. A quick note about the financials; Florida Medical Center and North Shore Medical have consolidated reporting. Coral Gables Hospital only has financials reported until 2019, while the other hospitals have 2020 financials.
The agreement also provides that Tenet’s Conifer Health Solutions subsidiary will continue to provide revenue cycle management services to the five hospitals. This transaction will bring Steward’s total hospital count to 44 worldwide and more than double its presence in Florida.
