Skip to Main Content

What’s the Status of the Brookwood, Baptist Merger

May 28, 2016
Birmingham Business Journal – May 28 –


The mega-merger between Brookwood Medical Center and Baptist Health System is still in the due diligence process, according to hospital officials.


On Thursday afternoon, a spokesman from Brookwood parent Tenet Healthcare (NYSE: THC), clarified previous statements to the BBJ from Brookwood executives. Tenet says the two sides are still working toward a definitive agreement to finalize the deal, but did not disclose a timeline.

The companies have previously told the BBJ the deal could close in the first half of 2015.

The joint venture will create the largest network of hospitals and physicians in Birmingham that could have enormous implications on the local medical market. It will also leave only one locally-owned health system in the city.

Tenet, based in Dallas, Texas, will most likely have a controlling stake in the new health system, given the company's recent spree of acquisitions and joint ventures in other markets.

Baptist Health System CEO Keith Parrott said that joining with a larger system made sense because the consolidating health care industry has created challenges for smaller systems.

It's still not clear what the leadership structure will look like, but it could consist of executives from both hospitals overseeing the Brookwood campus and Baptist's four hospitals. Brookwood hired new CEO Chuck Stark earlier this year.

The merger could also create a new level of competition between Tenet and Community Health Systems, which owns the soon-to-open Grandview Medical Center on U.S. 280. The two systems have battled consistently over multiple development projects in the metro area in the past.


This story has been edited from its previous version to reflect new comments from hospital officials. Representatives of Brookwood and Baptist now say the proposed deal is still in the due diligence process.

Find a Doctor

Need a doctor for your care? 

Sign Up for Health Tips

Get our advice and upcoming events about weight, pain, heart and more.