Baptist Health System and Tenet Healthcare Corporation have signed a definitive agreement to create a joint venture that will operate a healthcare network serving Birmingham and central Alabama. The new network will include all Baptist Health System hospitals, Tenet’s Brookwood Medical Center and each organization’s related businesses. Under the joint venture arrangement, Tenet will be the majority partner and will manage the network’s operations.

The new company will unite Baptist Health System’s four hospitals – Citizens Baptist Medical Center, Princeton Baptist Medical Center, Shelby Baptist Medical Center and Walker Baptist Medical Center – with Brookwood Medical Center. Together, the new system will have more than 1,700 licensed beds; 77 outpatient and physician office facilities, including clinics delivering primary and specialty care; approximately 7,300 employees; and approximately 1,500 affiliated physicians.

“We are excited about joining with Tenet to provide high-quality healthcare to communities across central Alabama,” said Keith Parrott, CEO of Baptist Health System.

“Together, we will continue to improve health care delivery to communities throughout central Alabama while preserving each hospital’s remarkable legacies,” said Garry Gause, CEO of Tenet southern region.

Parrott will become CEO of the joint venture, which will be overseen by a board composed of five representatives from Baptist and five representatives from Tenet.

The transaction, which is subject to customary closing conditions and regulatory approvals, is expected to be finalized in the third quarter of 2015.