StoneBridge Healthcare, a financial turnaround company, submitted a bid to purchase Providence, R.I.-based Care New England Health System.
The company, which launched in 2020 to help financially distressed hospitals, presented a letter of intent to Care New England offering the system $550 million — a purchase price of $250 million and a $300 million, seven-year investment in capital improvements.
StoneBridge said the transaction would help financially stabilize Care New England "to allow the health system to continue its mission to transform the future of healthcare for the communities it serves."
The letter of intent is not binding and a definitive agreement would need to be reached.
"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," said Joshua Nemzoff, CEO of StoneBridge Healthcare. "StoneBridge Healthcare has the expertise and financial resources needed to help lead Care New England to a promising future."
StoneBridge said it will complete this transaction as a nonprofit entity.