The Partnership Model

An Innovative Way to help Hospital Systems achieve their growth objectives

StoneBridge Healthcare has created a new way for Hospital Systems to grow through the power of partnership. Its model is tailored for teaming up with large hospitals and hospital systems and enables them to benefit from joint hospital purchases without significant operational or capital investment burdens. StoneBridge will provide most of the money needed to acquire the hospitals and will assume the responsibility of turning them around. Our partner maintains full control over all research and teaching activities while at the same time benefiting from an expanded brand platform. Our Partner will also take a leading role in clinical integration in order to protect their brand. StoneBridge has the flexibility to complete these transactions as either a for-profit or non-profit entity.

how it works?

Opportunities:StoneBridge and its partner agree to pursue the purchase of a specific hospital in the partner’s existing service area and/or new market areas.
Ownership: This newly formed partnership owns the purchased hospital. StoneBridge pays for most of the purchase price and retains a partnership majority (Typically 80%).
Operations: StoneBridge runs the day-to- day-operations of the acquired hospital and is responsible for significantly improving its performance. Our Hospital System partner is in charge of all research and teaching activities as well as having a leading role in clinical integration and quality control issues.

Call Option: StoneBridge will provide our Partner with a call option that will allow them to buy us out and assume full control of the hospital in a few years at their option.

benefits to the partner

Affordability: StoneBridge, backed by multiple financing sources, assumes the risk of providing the capital infusion needed to purchase and operate the acquired hospital.
Risk Mitigation: StoneBridge owns the complex task and risk of converting the acquired hospital into a financially viable center of ongoing excellence.
Efficiency: The partner hospital could spread its platform costs over a larger base of operations, providing savings that benefit itself and the target hospital being acquired.

Community Support: StoneBridge will extend community care into the urban markets it serves, using the hospital as a base from which to offer primary care where people live. This part of our commitment is called The Mission Project.
Reputation: The partner hospital could benefit reputationally by stepping in to protect patient care and essential community institutions that are running out of cash and time.

THE RESPONSIBILITIES

Stonebridge: Provides the capital infusion to make the purchase possible, manages the target hospital and its finances and oversees day-to-day operations.
Partner: Provides critical insights on improving quality care and clinical outcomes at the newly acquired hospital; assists with any coordination of medical staffs; and helps with branding, marketing and public relations. Responsible for pro-rata share of Partnership obligations.