Area hospitals announce possible merger

Baptist Health Systems announced Monday that it had signed a letter of intent with the parent company of Brookwood Medical Center “to form a new, jointly-owned company that will include all Baptist Health System hospitals, Brookwood Medical Center and their related businesses.”

The letter of intent to Brookwood, a subsidiary of Tenet Healthcare Corporation, is non-binding. Both parties have “initiated an exploratory period of due diligence, which is intended to result in a definitive agreement.

The new company would combine Citizens Baptist Medical Center in Talladega with Princeton, Shelby and Walker medical centers as well as Brookwood.  Officials say The partnership would build upon the strength of both Baptist Health Systems and Brookwood Medical Center, and give the expanded health care network access to a sustainable source of capital and the possibility of significant investments in new equipment, facility upgrades and strategic initiatives in the future, creating meaningful opportunities for innovations in care delivery.

The agreement could be finalized as soon as early spring.