Livonia, Mich.-based Trinity Health has fully stepped back from two major hospital joint ventures in the Southeast, marking a strategic shift that has generated billions in liquidity for the Catholic health system.
On March 12, 2025, Trinity signed a membership purchase agreement to divest its 49% ownership stake in a joint venture with Atlanta-based Emory Healthcare for St. Joseph’s Health System. The partnership included St. Joseph’s Hospital of Atlanta and John’s Creek Hospital.
According to financial documents published Sept. 26, Trinity’s investment in the joint venture dropped from $279.2 million as of June 30, 2024, to $0 a year later. In exchange, Trinity received $150 million in cash and a $150 million promissory note, to be repaid quarterly with interest over two years. The first payment of $17.9 million was collected June 30, 2025.
Less than a year earlier, Trinity finalized its separation from Clearwater, Fla.-based BayCare Health System. The two organizations had partnered since 1997 through a joint operating agreement. Trinity held a 50.4% interest in BayCare, which grew into the region’s largest provider with 16 hospitals and 32,000 employees.
On May 24, 2024, BayCare paid Trinity $4 billion in cash to disaffiliate, funded by $3 billion in cash reserves and a $1 billion bridge loan. Trinity exited its role as corporate member and board participant. The transition also resulted in BayCare assuming a fully independent corporate legal structure by June 30.
The payout significantly bolstered Trinity’s financial standing. Fitch Ratings noted in December that proceeds from the BayCare disaffiliation “not only strengthen Trinity Health’s balance sheet, but will also allow for more expeditious investment in community division transformation initiatives.”
While the $4 billion transaction provided Trinity with a significant liquidity boost, for BayCare, the move was about unlocking long-term independence and flexibility.
“We’re calling it BayCare 2.0,” Janice Polo, executive vice president and CFO, told Becker’s. “Now we have a governance structure that’s 100% community. It’s not partially with Trinity on the board. It really sets us up to be more nimble and adjust more quickly as the market changes. It’s a solid foundation for the next 50 years.”
Taken together, the Georgia and Florida transactions illustrate Trinity’s effort to simplify its structure and focus resources. Between the $4 billion BayCare disaffiliation and the $300 million divestiture of its Emory stake, the system has unlocked significant capital while exiting partnerships that once anchored its Southeast presence.
Trinity Health, which operates 93 hospitals across more than 20 states, said proceeds will help support transformation initiatives across its local markets, expand care delivery models, and maintain financial stability amid industry pressures.
