StoneBridge Healthcare is a new company formed solely to ensure that financially struggling hospitals can survive and thrive across the cities and suburbs of America. We form partnerships with leading Academic Medical Centers and other Health Systems to purchase and turn around hospitals that are in significant economic distress and could otherwise be forced to close, which would be devastating to the communities they serve. Our decades of experience, our financial investment and our commitment to expand primary care into the urban areas we serve make our company the only one of its kind.
We identify and buy hospitals that can be saved, and then we work urgently to make sure they survive and excel so they can keep offering the care their patients need. Distilled to its core, turning around hospitals often demands attention and action in four areas: Ensuring hospitals have excellent management and the right staffing mix at all levels; supporting and enhancing the medical staff; strengthening the flow and collection of revenue; and improving the effectiveness of the entire chain of supplies and services. Ultimately, we do what matters most: help hospitals continue to help patients.
Nothing is more important than patient care and knowing help is there if you need it. That is especially true in an emergency, when any moment can be life and death. Hospitals provide that assurance, and so much more, as cornerstones of care in their communities. They are particularly vital in locations where the availability and affordability of health care is already an enormous challenge; the closing of a hospital in an underserved community would be a brutal loss. Hospitals must survive. The health of millions of people is at stake. And, naturally, saving hospitals is also a matter of protecting jobs and preventing economic despair. With no federal bailouts coming, hospitals need a way to survive. That’s what we provide.
Hospitals in America are in the worst crisis they have ever seen. The coronavirus pandemic has attacked the financial health of hospitals because so many of their patients have been forced to stay home, leading to the cancelation of visits and elective surgeries. That, in turn, has dramatically cut the revenue hospitals need to stay alive. The result is that many hospitals – perhaps 50 percent of them, if not more – are in distress. That means they are about to run out of cash and the ability to operate, and even before they reach that point, they face devastating cuts to staff and services. Our new company has been in the works long before COVID-19, but the disease has only accelerated the need for more distressed hospitals to be saved.
Our distinctiveness starts with what we do. StoneBridge Healthcare can immediately step in and provide three things to distressed hospitals: We can acquire them; we can provide cash before closing through a rescue financing program; and we can restructure them so they can stop burning through money and succeed long term. We also pledge to respond to community healthcare needs of the urban markets we serve — outside of the hospitals — through our commitment known as The Mission Project. And we are also different in who we are. We are the leaders in understanding distressed hospitals, acquiring them and restoring them. We have expertise in all facets of the American healthcare system; many of our executives have themselves led hospital systems. Our CEO, Joshua Nemzoff, is one of the nation’s most trusted voices on hospital acquisitions. And we are capitalized through a multi-layered composite finance group that includes nationally known debt and equity sources. That is a sign of the seriousness of our purpose, the ability to deliver on our promises, and the smart business of investing in hospitals.
The Mission Project is a vital, community-based element of what we will provide when StoneBridge Healthcare acquires an urban hospital. Proper health care goes way beyond what happens in a hospital. It involves lifestyle habits of healthy diet, exercise and preventative care. That requires easy, affordable access to healthy food, safe places for recreation and doctor visits. This kind of primary care is simply not available to many vulnerable people. The Mission Project will be our way of providing it. We will listen to and work with local groups to understand the gaps in community care – and then put money and time into offering clinics or other life-changing help. The solutions may look different in each market, but the commitment will be consistent.
We will use our hospitals as bases of operations, capitalizing on their doctors, nurses, pharmacies, kitchens and vehicles to bring care and support to people where they live.
We want to buy acute-care hospitals in urban and suburban locations across the United States. We will acquire the right hospitals under the right conditions that would be a natural fit for our business. We are looking to buy hospitals with annual revenue of $250 million up to $1.5 billion. Acquiring hospitals can take six months to a year, but we are positioned to go faster for hospitals that need immediate assistance.
StoneBridge Healthcare is the parent company of this endeavor. StoneBridge forms a Partnership with an AMC or large system and that Partnership owns and operates the hospital. Each hospital we acquire with our partner will be a discrete entity operated by the Partnership.
For reporters seeking background or an interview, contact melissa@StoneBridgeHealthCare.org