The ink has not dried yet on the acquisition of Caritas by private equity firm Cerberus yet and the approval not final and they are reaching out to purchase a non profit to add to the for profit chain with the acquisition of Landmark Medical Center in Rhode Island. Investors are moving fast even before the ownership transfer is approved and I guess one might say they anticipate no issues here as Caritas before the acquisition had little or few options due to the fact that were out of money and coming out of bankruptcy.
The potential deal does not require the hospital to become affiliated with the Catholic doctrine and who knows when the options written into the purchase will be exercised as the investors have an open hand to donate $25 million to a charity and dissolve that relationship.
$25 Million Dollar Donation to Charity Included in New Agreement for Caritas to “Lose Their Religion” if Working With Catholic Ethics Becomes “Materially Burdensome”
This could also lead for another lab acquisition for Quest Diagnostics if the same organizational plans are carried through.
The article also further goes on to state there have been informal talks with Essent Healthcare Inc., owners of Merrimack Valley Hospital in Haverhill and Nashoba Valley Medical Center in Ayer, and Cambridge Health Alliance, owner of Cambridge Hospital, Somerville Hospital, and Whidden Memorial Hospital in Everett so it appears the new private equity owner is ready to move quickly with re-organization efforts.
All of this of course is projected and analyzed with high powered business intelligence software to produce the desired projections and the private equity firm I am guessing wants to reel into action quickly as reorganization effort completions will allow for a profitable sale down the road.
We are living in a very fast paced world today and obviously the investments in technology with being able to potentially suggest and realize profits is riding the fast track. We need folks in government too that realize and can understand this entire concept of private equity’s advances in healthcare. BD
Reaching across state lines, Caritas Christi Health Care asked a Rhode Island judge today to approve an agreement to buy Landmark Medical Center, a 214-bed community hospital in Woonsocket, R.I.
It would be the first acquisition by Caritas, the Boston-based chain of six Catholic hospitals that is seeking to expand its system with the resources of private equity firm Cerberus Capital Management.