New Platform Aims to Buy and Turn Around Hospitals Facing Closure
Call it a special-purpose vehicle for distressed real estate acquisitions. A vehicle known as StoneBridge Healthcare LLC has been launched with a plan to buy, save and turn around deeply distressed hospitals in the cities and suburbs of America.
StoneBridge is capitalized through a multi-layered composite finance group that includes Medical Properties Trust (MPT), Oaktree Capital Management and other nationally known debt and equity sources. It’s led by hospital consultant Joshua Nemzoff as CEO.
The platform was in the works before COVID-19 came to the U.S., but the pandemic has exacerbated the financial state of many hospitals, StoneBridge says. It’s especially true in underserved communities where access to healthcare is already limited.
“We want to ensure that these vital places of high-quality care remain open and thriving for the communities they serve,” Nemzoff said.
With the backing of MPT, Oaktree Capital and additional sources, StoneBridge says it can immediately step in and not only proceed with acquiring a hospital, but also provide cash before closing through a rescue financing program; and restructure the hospital prior to closing so they can succeed long term.
StoneBridge Healthcare plans to purchase and turn around acute care hospitals that are in significant economic distress and could otherwise be forced to close. It is actively exploring and vetting hospitals to purchase and will follow up with hospitals that approach the company for consideration.
The new venture will identify and buy hospitals that can be saved, and then work to make sure these hospitals survive and succeed. The platform will focus on three key areas: ensuring hospitals have excellent management and the right staffing mix at all levels; strengthening the flow and collection of revenue; and improving the effectiveness of the entire chain of supplies and services.
“This is about patient care,” Nemzoff said. “If these hospitals go under, people in underserved communities will have nowhere to turn in emergencies.”
Pictured: Mercy Hospital on Chicago’s South Side, which has announced its closing.
For comments, questions or concerns, please contact Paul Bubny
- ◦Sale/Acquisition
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