Steward’s US$1.1 Billion Acquisition of Tenet’s Hospitals

Sidley Austin LLP advised Steward Health Care System LLC on the deal.

Steward Health Care System, LLC (Steward) and Tenet Healthcare Corporation (NYSE: THC) announced that they have signed a definitive agreement regarding the acquisition by Steward of Tenet’s five hospitals and related hospital operations in the Miami-Dade and Southern Broward counties. The transaction is Steward’s first acquisition since finalizing full physician control and leadership of the organization in the summer of 2020.

Under the terms of the agreement, Steward will purchase five hospitals and their associated physician practices from Tenet for approximately $1.1 billion. The hospitals included in the sale are Coral Gables Hospital, Florida Medical Center, Hialeah Hospital, North Shore Medical Center and Palmetto General Hospital. The agreement also provides that Tenet’s Conifer Health Solutions subsidiary will continue to provide revenue cycle management services to the five hospitals following completion of the transaction. Tenet’s ambulatory facilities operated by United Surgical Partners International (USPI) in these markets will remain with Tenet and are not included in the transaction.

Steward Health Care’s physician-owned and -led business model was built to unlock access to the highest-quality care at a sustainable cost, committed to providing personalized, ongoing medical services that positively impact patients’ physical, emotional, and mental wellbeing.

Tenet Healthcare Corporation (NYSE: THC) is a diversified healthcare services company headquartered in Dallas with 108,000 employees.

The Sidley team is led by Sam Wales (Picture) and Ankur Gupta and includes a multi-office team consisting of Krista Lewis, Ben Kirschner, Erica Taschler, Robert Uhl, Ellen Heighten, Angela Fontana, Matt Walker, Dane Rupley, Tara Lancaster, Katie Funkhouser, Mark Langdon, Jon Zucker, Karen Kazmerzak, Beth Chen, Eric Winwood, Marian Fielding, Margaret Allen, Martha Clarke, Heather Palmer, Sarah Jehl, Lauren Grau, and Grace Walton.

Involved fees earner: Margaret Allen – Sidley Austin LLP; Elizabeth Chen – Sidley Austin LLP; Martha Clarke – Sidley Austin LLP; Marian Fielding – Sidley Austin LLP; Angela Fontana – Sidley Austin LLP; Katharine Funkhouser – Sidley Austin LLP; Lauren Grau – Sidley Austin LLP; Ankur Gupta – Sidley Austin LLP; Ellen Heighten – Sidley Austin LLP; Sarah Jehl – Sidley Austin LLP; Krista Kay Lewis – Sidley Austin LLP; Karen Kazmerzak – Sidley Austin LLP; Benjamin Kirschner – Sidley Austin LLP; Tara Lancaster – Sidley Austin LLP; Mark Langdon – Sidley Austin LLP; Heather Palmer – Sidley Austin LLP; Dane Rupley – Sidley Austin LLP; Erica Taschler – Sidley Austin LLP; Robert Uhl – Sidley Austin LLP; Samuel Wales – Sidley Austin LLP; Matthew Walker – Sidley Austin LLP; Grace Walton – Sidley Austin LLP; Eric Winwood – Sidley Austin LLP; Jon Zucker – Sidley Austin LLP;

Law Firms: Sidley Austin LLP;

Clients: Steward Health Care System;

Author: Martina Bellini