Hammond Hanlon Camp LLC Advises Baptist Health System on its Joint Venture with Tenet Healthcare Corporation
posted on October 8, 2015
NEW YORK — Baptist Health System (“Baptist”) and Tenet Healthcare Corporation (“Tenet”) have completed the previously announced transaction to create a joint venture that will operate a large integrated healthcare network serving Birmingham and central Alabama. Hammond Hanlon Camp LLC (“H2C”), a healthcare-focused investment banking firm, served as exclusive financial advisor to Baptist.
H2C was engaged by Baptist to help explore strategic partnerships with the goal of improving Baptist’s market position, facilitating its growth, and ensuring that Baptist can continue fulfilling its mission of enhancing the health, dignity and wholeness of those it serves. Once Tenet was identified as the preferred partner, H2C worked with Baptist to outline the transaction structure and led negotiations with Tenet. The joint venture represents the latest in a series of successful transactions dating back to 2006 in which professionals of H2C have advised Baptist.
“The advice H2C provided was critical in helping us achieve our goal of maintaining and growing the Baptist mission while ensuring we have an equal role in governing the combined organization long into the future” stated John Holcomb, Chairman of the Baptist Health System Board of Directors. “We couldn’t be more pleased with the outcome” added Mr. Holcomb.
The new company, to be governed by a Board of Directors consisting of five Baptist representatives and five Tenet representatives, will unite Baptist’s four hospitals — Citizens Baptist Medical Center, Princeton Baptist Medical Center, Shelby Baptist Medical Center and Walker Baptist Medical Center — with Tenet’s Brookwood Medical Center. Together, the new system will have more than 1,700 licensed beds; 77 outpatient and physician offices, including clinics delivering primary and specialty care; approximately 7,300 employees; and approximately 1,500 affiliated physicians.
“The H2C team did an excellent job advising Baptist on the formation of the joint venture,” stated Keith Parrot, Chief Executive Officer of Baptist Health System. “They understood our goals and objectives clearly and worked tirelessly to help us achieve them.”
“We were pleased to help Baptist in its partnership with Tenet. This is a very strategic transaction that strengthens the positions of both Baptist and Tenet in a highly competitive market. It’s a win for both parties” stated Michael B. Hammond, Principal, Hammond Hanlon Camp LLC. Email Michael
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.
ABOUT HAMMOND HANLON CAMP LLC
Hammond Hanlon Camp LLC (“H2C”) is an independent strategic advisory and investment banking firm committed to providing superior advice as a trusted advisor to healthcare organizations throughout the United States. H2C’s professionals have a long track record of success in healthcare mergers & acquisitions, capital markets, real estate and restructuring transactions, acting as lead advisors on hundreds of transactions representing billions of dollars in value. Hammond Hanlon Camp LLC offers securities through its wholly-owned subsidiary H2C Securities Inc., member FINRA/SIPC. For more information, go to h2c.com.
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"The advice H2C provided was critical in helping us achieve our goal of maintaining and growing the Baptist mission while ensuring we have an equal role in governing the combined organization long into the future.”
- John Holcomb
Chairman of the
Baptist Health System
Board of Directors
4655 Executive Drive
San Diego, CA 92121