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The Partnership Model

StoneBridge Healthcare has created a new way for communities to save their financially distressed hospitals through the power of partnership. Its model is tailored for teaming up with academic medical centers or other large hospitals because it enables them to benefit from joint hospital purchases without 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. StoneBridge’s majority interest could potentially help address any antitrust concerns. Our partner maintains full control over all research and teaching activities while at the same time benefiting from an expanded brand platform.

how it works?

  • Opportunities: StoneBridge and its partner pursue the purchase of a financially distressed 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 turning around its performance. The academic medical center partner is in charge of all research and teaching activities.
 
  • Call Option: StoneBridge may 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 multi-billion-dollar investors, assumes the risk of providing the capital infusion needed to purchase and operate the distressed hospital.

  • No Burdens: StoneBridge owns the complex task and risk of turning the distressed 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 turn-around and oversees administrative cost reductions.
  • 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.