Cerberus Capital Management — the owner of Boston-based Steward Health Care — is being portrayed as money-hungry for investing in fracking, a controversial oil and gas extraction method, according to a Boston Globe report.
New York-based Cerberus is the private equity firm that has recently acquired non-profit hospitals and turned them into for-profit facilities. It recently purchased Keane & Sons Drilling, a fracking firm, for an undisclosed sum.
Fracking, or hydraulic fracturing, involves sending highly-pressurized fluids underground to release petroleum, natural gas and other substances from reservoirs. The method has attracted international scrutiny for potential environmental risks.
The deal has raised concerns among some people in the environmental and healthcare industries. A spokesperson from the Massachusetts Nurses Association said the investment "just raises again our concerns about private equity firms entering healthcare," according to the report.
Kert Davies of Greenpeace USA says the simultaneous investments in hospitals and drilling companies shows Cerberus "just care[s] about making money," according to the report.
Massachusetts Nurses Association to Protest Steward, Cerberus' Business Practices
Private Equity Investing in Healthcare — 13 Hot and 4 Cold Areas
New York-based Cerberus is the private equity firm that has recently acquired non-profit hospitals and turned them into for-profit facilities. It recently purchased Keane & Sons Drilling, a fracking firm, for an undisclosed sum.
Fracking, or hydraulic fracturing, involves sending highly-pressurized fluids underground to release petroleum, natural gas and other substances from reservoirs. The method has attracted international scrutiny for potential environmental risks.
The deal has raised concerns among some people in the environmental and healthcare industries. A spokesperson from the Massachusetts Nurses Association said the investment "just raises again our concerns about private equity firms entering healthcare," according to the report.
Kert Davies of Greenpeace USA says the simultaneous investments in hospitals and drilling companies shows Cerberus "just care[s] about making money," according to the report.
Related Articles on Cerberus Capital Management:
Despite Distressed Assets, Private Equity Firms See Value in HealthcareMassachusetts Nurses Association to Protest Steward, Cerberus' Business Practices
Private Equity Investing in Healthcare — 13 Hot and 4 Cold Areas