The $895 million sale of formerly not-for-profit Caritas Christi Health Care to for-profit Cerberus Capital Management has been finalized and the new system is planning an accountable care organization, according to a report by the Boston Globe.
The six-hospital system in the Boston area will operate under a Cerberus affiliate, Steward Health Care System. Ralph de la Torre, the current Caritas CEO, who will continue in his post under the new ownership, has said the system plans to build an ACO and may expand beyond Massachusetts.
Cerberus will spend about $116 million on projects, including new and renovated ORs, as part of a pledge to invest $400 million in capital improvements over the next four years. Cerberus also agreed not to close any Caritas hospital for three years and to extend that pledge for two more years unless one of the hospitals loses money for two consecutive years.
Buyouts of a not-for-profit hospitals by for-profits often require a great deal of regulatory scrutiny. The Caritas Christi transaction was previously approved by the Massachusetts Attorney General, the Massachusetts Public Health Council and the state Supreme Court. The system was run by the Boston archdiocese until 2008.
Read the Boston Globe report on the hospital sale.
Read more coverage on the sale of Caritas Christi to Cerberus.
- Massachusetts Supreme Court Approves Caritas Christi Sale
- Massachusetts Health Council Approves Caritas Christi Sale
- Massachusetts Attorney General Approves Caritas Christi Sale
The six-hospital system in the Boston area will operate under a Cerberus affiliate, Steward Health Care System. Ralph de la Torre, the current Caritas CEO, who will continue in his post under the new ownership, has said the system plans to build an ACO and may expand beyond Massachusetts.
Cerberus will spend about $116 million on projects, including new and renovated ORs, as part of a pledge to invest $400 million in capital improvements over the next four years. Cerberus also agreed not to close any Caritas hospital for three years and to extend that pledge for two more years unless one of the hospitals loses money for two consecutive years.
Buyouts of a not-for-profit hospitals by for-profits often require a great deal of regulatory scrutiny. The Caritas Christi transaction was previously approved by the Massachusetts Attorney General, the Massachusetts Public Health Council and the state Supreme Court. The system was run by the Boston archdiocese until 2008.
Read the Boston Globe report on the hospital sale.
Read more coverage on the sale of Caritas Christi to Cerberus.
- Massachusetts Supreme Court Approves Caritas Christi Sale
- Massachusetts Health Council Approves Caritas Christi Sale
- Massachusetts Attorney General Approves Caritas Christi Sale