Cerberus plans to expand the health system and has agreed not to sell the hospitals or take them public for at least three years, according to the report. Caritas Christi would become a for-profit entity, but its management would continue to operate its facilities, maintaining its Catholic influences.
The deal still needs approval from the state Supreme Court, since the agreement will involve a non-profit organization becoming a for-profit one, as well as approval from Cardinal Sean P. O’Malley of the Archdiocese of Boston, which helped found the system although it has since become an independent charity, according to the report.
While Caritas has seen increases in its revenues in recent years, it is need of additional cash flow for maintenance and upgrades and “is weighed down by debt and pension obligations,” according to the report.
This deal follows another well-publicized agreement between for-profit Vanguard Health Systems and non-profit Detroit Medical Center, in which Vanguard will acquire the non-profit system, making it a for-profit entity. |
Read the Boston Globe’s report on Caritas Christi Health Care.
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