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Medical Properties Trust just closed on the fourth of the five hospitals it plans to acquire as part of a major expansion into South Florida healthcare totalling roughly $900 million.

The Birmingham, Alabama-based real estate investment trust bought Palmetto General Hospital in Hialeah for $315 million from an affiliate of Dallas-based Tenet Healthcare, records show.

Some of the buildings that make up the hospital campus purchase are the Palmetto Medical Plaza at 7100 West 20th Avenue and the garage at 7160 West 20th Avenue as well as next-door physicians’ offices at 2001 West 68th Street and 2001 West 68th Street, records show.

The deal is part of MPT’s agreement with Tenet to buy five South Florida facilities and then lease them to Dallas-based Steward Health Care System, which purchased the hospitals’ operations and associated physician practices from Tenet, according to a news release.

MPT already bought North Shore Medical Center near North Miami and Coral Gables Hospital in the Gables for a combined $276 million. This came on the heels of the group’s purchase of Florida Medical Center, three office buildings and FMC Medical Mall in Lauderdale Lakes for $171 million from a group of sellers that included Tenet.

The medical REIT is also planning to buy Hialeah Hospital, although public records do not yet show the purchase.

MPT, led by Edward K. Aldag Jr., is a hospital and medical office investor with $22.3 billion of assets under management, according to its website. The majority of its portfolio is in the U.S. but it also has properties in the United Kingdom, Australia, Switzerland, Germany and elsewhere.

Tenet, which is also publicly traded, is led by executive chair and CEO Ronald Rittenmeyer, according to its website. It runs 60 hospitals and about 460 other healthcare facilities.

 

Source:  The Real Deal

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The hospitals include North Shore Medical Center, Coral Gables Hospital, Hialeah Hospital and Palmetto General Hospital in Miami-Dade County and Florida Medical Center in Broward County.

The deal brings the total number of hospitals under Steward to 44 worldwide.

“I am humbled by the opportunity to expand our footprint in my beloved home state. We know there are health challenges here and we are eager to work with local leaders to address them together,” said Steward’s CEO Dr. Ralph de la Torre.

The deal more than doubles Steward’s presence in Florida, which includes Melbourne Regional Medical Center, Rockledge Regional Medical Center and Sebastian River Medical Center.

Overseeing the new hospitals is Dr. Sanjay Shetty, Steward’s president of North America. Shetty has held numerous leadership roles at the healthcare system and helped expand its presence across the U.S. He also helped oversee the establishment and implementation of clinical protocols at Steward for addressing challenges created by the COVID-19 pandemic.

The pandemic is one of the motivating factors behind Steward’s desire to expand its presence. It previously motivated the healthcare system in March 2020 to open the first dedicated care center in the U.S. for COVID-19 patients at Carney Hospital in Boston.

“Steward understands that combatting the resurgence of the COVID pandemic in South Florida is our most urgent and immediate priority,” said Shetty. “Already, we have begun to redeploy PPE, ventilators, and other vital supplies needed for the care of COVID patients from our other facilities throughout the country to hospitals in this market.”

Steward annually cares for 12.3 million patients at hospitals, urgent care centers, skilled nursing facilities, multispecialty physician practices and behavioral health service facilities across the U.S., Colombia and Malta. It employs more than 5,500 clinicians and 43,000 healthcare professionals.

Tenet’s ambulatory facilities operated by United Surgical Partners International in these areas are not included in the transaction and will remain with Tenet.

No financial details were disclosed. 

 

Source:  DotMed

 

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A health group is buying five South Florida hospitals for $1.1 billion. Their new owner has strong regional ties.

Dallas-based Steward Health is purchasing North Shore Medical Center, Florida Medical Center, Coral Gables Hospital, Hialeah Hospital and Palmetto General Hospital from Tenet Healthcare Corp., which is also based in Dallas.

Steward, led by Cuban American and Floridian Dr. Ralph de la Torre, is among the largest physician-owned healthcare networks in the U.S., with more than 5,500 providers and 43,000 healthcare professionals. In addition to de la Torre, several of Steward’s senior leaders have close ties to South Florida. Dr. Octavio Diaz, Steward’s chief medical officer, previously practiced in South Florida and worked at several of the acquired facilities; while Rubén J. King-Shaw Jr., Steward’s Chief Strategy Officer, served as COO for Neighborhood Health Partnership before becoming Florida’s Secretary of the Agency for Health Care Administration under former Gov. Jeb Bush.

“As a Floridian with close family ties to the area, I am proud of Steward’s significant investment in the people of South Florida, whose tight-knit communities and vibrant diversity have always represented the very best of American culture,” de la Torre said in a statement.

Steward’s operations will be directed by Dr. Sanjay Shetty, president of Steward North America. The transaction is expected to close in the third quarter of this year.

Tenet’s ambulatory facilities, operated by United Surgical Partners International, will remain with Tenet and are not included in the transaction.

 

Source:  Miami Herald