Orlando Health Enters into a Stalking Horse Purchase Agreement with Steward Health Care for Three East Central Florida Operations

Orlando, FL – (August 14, 2024) – Orlando Health today announced that it has entered into a binding asset purchase agreement to purchase from Steward Health Care (“Steward” or the “Company”), its East Central Florida operations, comprised of Rockledge Regional Medical Center, Melbourne Regional Medical Center, Sebastian River Medical Center, and Steward Medical Group Practices. Orlando Health is a private, not-for-profit healthcare organization serving the Southeastern United States and Puerto Rico. Earlier this month, the system entered into a definitive agreement to purchase majority interest in Brookwood Baptist Healthcare, located in central Alabama. Steward Health Care is the country’s largest physician-led, minority-owned, integrated health care system. Orlando Health’s qualified bid has been designated as the stalking horse and, subject to the terms of the agreement, Orlando Health’s bid will be subject to higher or better qualified bids received by August 26th, 2024, at which time a bankruptcy court-approved auction may occur.

“We have seen repeatedly that when Orlando Health enters a new area, patient care improves, relationships with physicians and team members grow stronger and surrounding communities benefit,” said David Strong, president and CEO, Orlando Health. “We believe we can recreate these same results for patients, team members, physicians and the communities in which these hospitals are located.”

Orlando Health is a 3,487-bed system that includes 17 hospitals, 10 free-standing emergency rooms and 9 Hospital Care at Home programs, with additional facilities under development. In addition, the system also includes skilled nursing facilities, an in-patient behavioral health facility under the management of Acadia Healthcare, and more than 375 outpatient facilities that include physician clinics, imaging and laboratory services, wound care centers, home healthcare services in partnership with LHC Group, and urgent care centers in partnership with CareSpot Urgent Care. More than 4,950 physicians, representing more than 100 medical specialties and subspecialties have privileges across the Orlando Health system, which employs more than 29,000 team members and more than 1,500 physicians.

The transaction is subject to customary closing conditions, including Bankruptcy Court and regulatory approval, and is expected to close in the Q4 2024 should Orlando Health emerge as the winning buyer at the auction.

Orlando Health is represented by Hogan Lovells US LLP (Counsel) and Huron Transaction Advisory LLC (Healthcare Investment Banker).

About Orlando Health

Orlando Health is a private not-for-profit, integrated academic healthcare system with $10.5 billion of assets under management, that serves the southeastern United States and Puerto Rico. With corporate offices in Orlando, Florida the system provides a complete continuum of care across a network of medical centers and institutes, community and specialty hospitals, physician practices, urgent care facilities, skilled nursing facilities, home healthcare, and long-term and behavioral health care services. Founded more than 100 years ago, Orlando Health’s mission is to improve the health and the quality of life of the individuals and communities we serve. The system provided nearly $1.3 billion in community impact in the form of community benefit programs and services, Medicare shortfalls, bad debt, community-building activities and capital investments in FY 22, the most recent period for which the information is available. For more information, visit orlandohealth.com, or follow us on LinkedIn, Facebook, Instagram and X (formerly Twitter.)