StoneBridge Healthcare, a financial turnaround company, submitted a bid to purchase Providence, R.I.-based Care New England Health System, Becker’s reports
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.
Rhode Island Attorney General Peter Neronha last week denied the application for the merger of Lifespan and Care New England, saying the merged company would have so much market power that it would be in violation of state and federal antitrust laws.
A merged company would control 75% of all inpatient acute care hospital beds in Rhode Island, the AG’s office said.
The Stonebridge bid would complete the transaction with Care New England as a nonprofit. Read more.
