In case you missed it, the 6 Hospital chain, Caritas Christi Health was sold to a private Equity firm, Cerberus for $830 million earlier this year and with the financial status of the hospitals there was not a lot of choice after recovering from bankruptcy and reorganization in place, and if it was not this organization it may have been another.
There had been other effort too such as selling the hospital physician lab business to Quest Diagnostics recently as well.
This is somewhat of an interesting clause but hopefully big enough to keep both side working together and in another way a reminder that a return on investment is in the plan for the future so again hopefully ethics and business will be able to live together as non profit turns into a for profit situation. If the new owners make a $25 million dollar donation to a charity selected by the church, the religion would be gone. In short, religion is not to stand in the way of financial viability. BD
The private-equity firm proposing to purchase Boston’s six Catholic hospitals intends to maintain the hospitals’ religious identity, but has also negotiated an escape clause that would allow the firm to end the religious affiliation in exchange for a $25 million donation to charity.
The much-anticipated agreement between the private equity firm, Cerberus Capital Management, and the Archdiocese of Boston, was released yesterday by Attorney General Martha Coakley, who is obligated by law to review the proposed conversion of the hospital system into a for-profit venture. Ultimately, the deal would have to be approved by the state Supreme Judicial Court, the state Department of Public Health, as well as Pope Benedict XVI.
But Steward could terminate the agreement if it decides com plying with Catholic ethical guidelines for hospitals is “materially burdensome,’’ a term that is not defined. In such a case, Steward would have to pay $25 million to a charity chosen by the church, remove all symbols of Catholic identity from the hospitals, and stop using “the name of any pope or saint or any name that is otherwise traditionally associated with the Roman Catholic Church.’’