StoneBridge Healthcare made an unsolicited $250 million offer to buy Providence, R.I.-based Care New England, according to local news station WPRI.
The New Hope, Pa.-based hospital financial turnaround firm announced its founding Aug. 19 and aims to acquire and save distressed city and suburban hospitals.
StoneBridge Healthcare said it presented a nonbinding letter of intent to Care New England, which has been struggling financially for several years. Last week, the health system recorded a $13 million net loss for its fiscal year 2020.
In addition to trying to purchasing the system for $250 million, StoneBridge said it wants to invest $300 million into capital improvements.
"As the cost of care has risen, and the COVID-19 pandemic has placed a tremendous strain on health systems across the nation, StoneBridge Healthcare is ready to assist Care New England during these challenging times to continue delivering an outstanding continuum of care to the region," StoneBridge CEO Joshua Nemzoff told WPRI. "StoneBridge Healthcare has the expertise and financial resources needed to help lead Care New England to a promising future."
If Care New England accepts the offer, it would be StoneBridge Healthcare's first successful transaction. The private equity firm also submitted a $450 million bid in August to acquire Chattanooga, Tenn.-based Erlanger Health System. Erlanger leaders turned down the offer.
The proposal also comes as Care New England is negotiating a potential merger with Providence-based Lifespan. The organizations are working to complete a definitive agreement by January.