StoneBridge Healthcare has been created by a composite finance group to buy and save distressed hospitals in the US.
Funded by a group composed of debt and equity sources including Medical Properties Trust and Oaktree Capital Management, the new company’s goal is to turn around distressed hospitals facing financial crisis after the coronavirus pandemic. Medical Properties Trust is a $20 billion real estate investment trust that owns almost 400 acute care hospitals and Oaktree Capital is a global investment manager specializing in alternative investments with $120 billion in assets. These companies can provide Stonebridge with the cash needed via a rescue financing program and restructure the hospital prior to closing.
“We want to ensure that these vital places of high-quality care remain open and thriving for the communities they serve,” said Joshua Nemzoff, chief executive officer of StoneBridge. “Our experience, our financial investment and our commitment to expanding primary care into the urban areas we serve make our company the only one of its kind.”
Stonebridge Healthcare plans to purchase acute care hospitals in significant economic distress and is facing closure. The company would help turn around the hospitals financially, and is currently researching and identifying hospitals to purchase. The company will focus on three key areas: ensuring hospitals have proper management and staffing at all levels, strengthening collection of revenue and improving effectiveness of supply chains and services.
Stonebridge Healthcare operates via an initiative called “The Mission Project,” where it will bring services to the community using acquired hospitals as a base of operations. The company plans to reach out to local communitites to understand the gaps in community care.
Nemzoff said the company’s innovative plans are about “patient care” as many of the hospitals will be underserved communities.