Erlanger rejects $475M bid from new private equity firm

State Sen. Todd Gardenhire called the $475 million provide an “incredibly lowball effort” and revealed strong opposition to a healthcare facility sale.

Mr. Gardenhire chairs Hamilton Countys legal delegation, which selects 4 of the 11 trustees who govern the medical facility.

In a joint declaration, Erlangers management, board of trustees and regional elected authorities stated there are no plans to offer the public health center and disagreed with StoneBridges evaluation of its financial resources. Authorities stated the medical facility has more than 100 days of cash on hand and is anticipated to surpass its existing allocated net earnings of $5 million..

StoneBridge Healthcare provided $475 million to purchase Chattanooga, Tenn.-based Erlanger Health System from Hamilton County, however regional leaders state there is no plan to sell the safety-net health center, according to the Chattanooga Times Free Press..

The Lahaska, Pa.-based personal equity firm revealed its founding Aug. 19 and aims to acquire and turn around distressed city and suburban hospitals. StoneBridge CEO Joshua Nemzoff informed the Chattanooga Times Free Press that Erlanger has remained in difficulty for a while and requires to be saved.

Erlanger board member Jim Coleman informed the Chattanooga Times Free Press June 22 that the health system is forecasting about $1.1 billion in total operating profits in fiscal year 2021.

StoneBridge is backed by Medical Properties Trust, a $20 billion real estate financial investment trust that owns almost 400 medical facilities, and Oaktree Capital Management, a company with $120 billion in assets under management. Mr. Nemzoff stated the personal equity group has been in the making for a while and has actually had its eye on Erlanger for about one year. The offer to buy Erlanger is StoneBridges very first, the Chattanooga Times Free Press reports.

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” We have the talent to do it, we have the financial strength to do it, whichs why they should think about offering the healthcare facility,” Mr. Nemzoff said..

” My response to, Should they sell it to any person? is not no, but hell no,” he told the Chattanooga Times Free Press..

StoneBridge is backed by Medical Properties Trust, a $20 billion realty investment trust that owns almost 400 hospitals, and Oaktree Capital Management, a company with $120 billion in assets under management. Mr. Nemzoff said the personal equity group has remained in the producing a while and has had its eye on Erlanger for about one year. The offer to purchase Erlanger is StoneBridges very first, the Chattanooga Times Free Press reports.