After a private equity healthcare firm offered to buy Erlanger Health System for $475 million, County Mayor Jim Coppinger said, "Erlanger is not for sale - then or now."
The county mayor received an eight-page offer for the long-standing public hospital from Joshua Nemzoff, president of StoneBridge Healthcare, which is described as an innovative company formed to buy, save and turn around deeply distressed hospitals in the cities and suburbs of America."
The group said, "The coronavirus has created the worst financial crisis American hospitals have ever faced, depriving them of the revenue they need to stay alive. Many U.S. hospitals are close to running out of cash and the ability to operate. StoneBridge Healthcare was in the works long before COVID-19, but the disease has only accelerated the need for distressed hospitals to be saved. This is particularly true in underserved communities, where access to health care is limited and the loss of a hospital would be devastating."
Mr. Nemzoff said, "We want to ensure that these vital places of high-quality care remain open and thriving for the communities they serve. 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."
County Mayor Coppinger said, "Erlanger is extremely important to our entire region and is second to none as a public hospital."
Erlanger officials said, "StoneBridge’s proposal was presumably constructed with the belief that Erlanger is struggling financially. This belief is simply not true; Erlanger’s financial status is solid. A few key metrics for Fiscal Year 2020 that are important indicators of Erlanger’s financial status include:
- Erlanger is expected to considerably outperform its current budgeted net income of $5 million.
- Erlanger’s days of cash on hand exceed 100 days, a significant improvement during FY 2020.
“The unwavering position that Erlanger is not for sale is shared by the hospital Board, Mayor Coppinger and the Hamilton County Delegation,” said Linda Moss Mines, Chair of Erlanger’s Board of Trustees. “Erlanger is essential to our community and will continue providing exceptional care to all citizens. Our region has relied on Erlanger for over 125 years, and we will continue to be here for our patients.”
“Erlanger
is an essential
civic asset for delivering innovative, high-quality medical care in this region,” said Dr. William L. Jackson, president and CEO of Erlanger Health System. “It is not only our responsibility, but
also our
privilege, to
care for everyone in our service area. Without Erlanger operating as the public’s non-profit,
safety-net hospital, thousands of
people would not receive the care they
need. Erlanger
has an honorable mission
through
the dedication of all
6,600 associates to make Chattanooga and the surrounding areas a better and
healthier place
to live and work.”
Click here for the Erlanger Offer To Purchase.