Monday, November 8, 2010

Cerberus Deal With Caritas For Good Samaritan, Other Hospitals Finalized

The BrocktonPost
BOSTON--Caritas Christi Health Care, which includes Good Samaritan Medical Center in Brockton, today announced it has completed its sale to Steward Health Care System LLC, a newly formed affiliate of Cerberus Capital Management, L.P.
The sale to Steward includes six Caritas Christi hospitals: Good Samaritan Medical Center in Brockton, St. Elizabeth’s Medical Center in Brighton, Carney Hospital in Dorchester, Norwood Hospital, Saint Anne’s Hospital in Fall River, and Holy Family Hospital in Methuen.
According to a statement issued by Caritas Christi Healh Care, Steward has also acquired the assets of other Caritas Christi entities, including the Caritas Physician Network, Caritas Hospice and Home Care, Laboure College, and Por Cristo. As a result of the transaction, the Caritas system will no longer operate on a non-profit, tax free basis and will begin paying all applicable state and local taxes and continue to provide established levels of free care for the uninsured, community benefits and pastoral care.
The sale had already been approved by the Massachusetts Supreme Judicial Court, Attorney General and Department of Public Health, as well as the Roman Catholic Archdiocese of Boston and the Vatican in Rome.
The system will continue to operate under the Caritas Christi banner following the sale.
The completed transaction brings approximately $895 million of capital to the Caritas Health Care System to be used for the assumption of pension obligations, repayment of debt, funding for operations and significant capital projects, including immediate upgrades to Caritas’ six hospitals.
Good Samaritan in May began construction of a new 32,000-square-foot emergency room and expanded facilities.
“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, CEO of Steward. “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,” he said.
De la Torre and the current senior leadership at Caritas Christ will remain in place and the six Caritas hospitals will continue to deliver care that adheres to the Ethical and Religious Directives for Catholic Health Care.

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