Done deal: Caritas Christi closes sale to NY firm
Nov. 8, 2010
The sale of six hospitals in the Caritas Christi to an affiliate of a New York capital management firm is complete, officials said Monday.
The finalization of the multi-million dollar deal, with Cerberus Capital Management, LP, comes after sign-offs from the state Supreme Judicial Court, Attorney General Martha Coakley, and the state Department of Public Health. The Vatican and the Archdiocese of Boston also approved the sale, which turns the system into a for-profit institution.
The six hospitals include Carney Hospital in Dorchester, St. Elizabeth’s Medical Center in Brighton, Norwood Hospital, Good Samaritan Medical Center in Brockton, Saint Anne’s Hospital in Fall River, and Holy Family Hospital in Methuen.
The sale also included Laboure College, the Caritas Physician Network, Caritas Hospice and Home Care, and Por Cristo.
Cerberus plans to flood the system with $895 million in capital, for us in pension obligations, debt repayment and funding of capital projects, including upgrades to the hospitals. Senior leadership at the Caritas hospitals will remain in place.
“We owe a debt of gratitude to our employees, the communities Caritas Christi Health Care System serves, the Archdiocese of Boston and to the state of Massachusetts for their support and approval of this transaction,” said Ralph de la Torre, MD, who oversaw the Caritas Christi network and is now CEO of Steward, the Cerberus affiliate. “With the purchase of Caritas Christi, Steward Health Care System will become a model for high-quality, low-cost, community-based health care. We look forward to continuing our service to the communities that have put their trust in us.”