The sale of Caritas Christi

Caritas Christi Health Care, the state's second-largest hospital group, has agreed to be bought in a $830 million deal that will turn the Catholic-run nonprofit into a for-profit enterprise.

Latest news

Low-profile portfolio

Cerberus Capital Management, the new owner of Caritas Christi Health Care, has a history of quiet buyouts that pay off. (Boston Globe, 11/27/10)

Caritas now a for-profit chain

A NY buyout firm is the owner of Caritas Christi Health Care, the region’s second-largest hospital system, turning the nonprofit Catholic chain into a for-profit operation. (Boston Globe)

Caritas purchase wins final state approval

The area's second largest hospital system won its final state approval when a justice of the Supreme Judicial Court of Massachusetts issued a declaratory judgment.

Caritas says it will continue to fund pensions

Though it has no legal responsibility to fund its employees’ pensions, Caritas Christi Health Care never considered walking away from the obligation before it agreed to be bought by a private-equity firm, and the state attorney general’s office never considered forcing it to, lawyers said yesterday in a hearing at the state’s highest court.

Cerberus has history of tough decisions

Cerberus Capital Management has made the kind of tough business decisions typical of buyout firms trying to turn around money-losing companies. (By Beth Healy, Boston Globe)

Catholic officials sign off on Caritas sale

Catholic church officials have signed off on the sale of Caritas Christi Health Care to a private equity firm, according to a document filed with the Supreme Judicial Court. (By Robert Weisman, Boston Globe)

Caritas will ask SJC to approve sale

With the state Public Health Council voting unanimously to grant new licenses for Caritas Christi Health Care’s six hospitals, including St. Elizabeth’s Medical Center and Carney Hospital in Boston, the Catholic health care system will now petition the state’s highest court to transfer ownership to a New York private equity firm. (By Robert Weisman, Globe Staff)

Coakley backs Caritas sale, with conditions

Massachusetts Attorney General Martha Coakley said she will recommend approval of the proposed sale of Caritas Christi Health Care to a New York private equity firm.

Deal near on terms for Caritas sale to Cerberus

Representatives of Caritas Christi Health Care, the private equity firm seeking to buy it, and the attorney general’s office are working on a tentative agreement to protect the retirement plans of 13,000 employees and keep the chain’s hospitals open for at least five years. (By Robert Weisman, Globe Staff)

Caritas warns of two hospital closures

Caritas Christi Health Care executives have told union negotiators they will shutter St. Elizabeth’s Medical Center in Brighton and Carney Hospital in Dorchester if they can’t close a deal for the six-hospital chain to be bought by a New York private equity firm. (By Robert Weisman, Globe Staff)

Labor groups affirm support of Caritas deal

Representatives from nine labor groups in Massachusetts sent a letter to the state attorney general’s office yesterday reiterating their support for the purchase of Boston’s Caritas Christi Health Care by a New York private equity firm. (By Robert Weisman, Globe Staff)

Coalition urges scrutiny of Caritas sale

More than 20 community groups, health care providers, and lawmakers are calling on state regulators to slow the approval process for the proposed acquisition of Boston-based Caritas Christi Health Care by a New York private equity firm. (By Robert Weisman, Globe Staff)

Hospitals seek rules for Caritas after sale

A coalition of community hospitals that compete with Caritas Christi Health Care across eastern Mass. is appealing to the state attorney general’s office to impose strict rules on the proposed sale of the nonprofit chain to a New York private equity firm. (By Robert Weisman, Globe Staff)

After sale, Caritas will convert R.I. hospital to Catholic facility

Caritas Christi Health Care yesterday said it plans to convert Landmark Medical Center of Woonsocket, R.I., into a Catholic hospital if its agreement to acquire the financially ailing 214-bed community hospital is approved by a Rhode Island judge and state regulators. (By Robert Weisman, Globe Staff)

Sale linked to insurer pact

The proposed buyer of Caritas Christi Health Care is so convinced of the potential financial benefits of an insurance contract the Catholic hospital system negotiated with Blue Cross Blue Shield of Massachusetts last year that it has made the agreement a condition of closing the deal. (By Robert Weisman, Boston Globe)

Coalition seeks stricter limits on Caritas sale

A loose coalition of consumer groups, community health centers, and competing hospitals plans to ask state regulators to impose tough conditions on the purchase of nonprofit Caritas Christi Health Care by a New York private equity firm. (By Robert Weisman, Boston Globe)

Caritas sale racking up support

Halfway through a series of six state hearings on the proposed $830 million sale of nonprofit Caritas Christi Health Care to a New York buyout firm, support for the deal is far outstripping concerns. (By Robert Weisman and Megan Woolhouse, Boston Globe)

Caritas aims to expand

Although regulators have yet to approve the sale of Caritas Christi Health Care to a New York investment firm, the hospital chain is already taking steps to expand by buying other community hospitals. (By Robert Weisman and Beth Healy, Boston Globe)

Caritas files sales notice with AG's office

Today's filing includes an agreement saying the hospitals must follow the ethical directives from the US Conference of Catholic Bishops. (By Lisa Wangsness, Boston Globe)

Caritas could carve out a lower-cost niche

The New York private equity firm that last week struck a deal to buy Caritas Christi Health Care could build the chain of six Catholic community hospitals into a competitive lower-cost provider of medical services in Massachusetts, touting it as a profitable national business model in the age of health care reform, analysts say. (By Steven Syre and Robert Gavin, Boston Globe)

At Caritas helm, a doctor turned dealmaker

After three hours of dinner and drinks with Dr. Ralph de la Torre at a resort last November, a top executive at Cerberus Capital Management paved the way for the private equity firm to buy Caritas for $830 million. (By Robert Weisman, Liz Kowalczyk, and Casey Ross, Boston Globe)

Caritas chief donated to Coakley

Attorney General Martha Coakley, whose office will play a crucial role as the state reviews the proposed acquisition of Caritas Christi Health Care, was the guest of honor at a campaign fund-raiser hosted by Caritas’s chief executive at his Newton home. (By Casey Ross, Boston Globe)

Hope, hesitation over Caritas deal

Employees, patients, and community leaders said Thursday they are wary but hopeful after learning that the Caritas Christi Health Care system has agreed to be acquired by a New York private equity firm, while state regulators said the complicated approval process will probably stretch into the fall. (By Robert Weisman, Boston Globe)
Analysis

Money woes not new for Catholic hospitals

Shortly after the Civil War, Andrew Carney, an Irish-born tailor who had made a small fortune selling uniforms to the US Navy, bequeathed $56,000 to a fledgling hospital in South Boston. He wanted it to serve the working class, “without distinction of creed, color, or nation.’’ (By Lisa Wangsness, Boston Globe)

Lots for AG to ponder on Caritas deal

Do you wonder how a hospital chain that has struggled on and off for so long as a nonprofit organization will be better off serving its patients and the financial interests of new private investors with a relatively high risk-high return slant to their portfolio? I do. (By Steven Syre, Boston Globe)
The sale agreement

Infusion would revive Caritas projects

Under terms of the deal, the New York private equity firm will initially invest $100 million in improvements at the chain of six Catholic community hospitals, much of it for work that is long overdue and key to the system’s growth, officials said. (By D.C. Denison, Boston Globe)

Equity firm to buy Caritas Christi

Caritas Christi Health Care, the state's second-largest hospital group, has agreed to be acquired by a New York private equity firm. (By Robert Weisman, Boston Globe)
The buyer

Cerberus's success hurt by a pair of gambles

Secretive even by the standards of the hushed world of private equity, Cerberus Capital Management is perhaps best known for two big gambles that went spectacularly wrong: Its acquisitions of Chrysler Corp. and GMAC. (By Casey Ross, Boston Globe)

Photos

A rundown of the Caritas deal

A rundown of the deal

See the affected hospitals and the major players involved in the sale agreement.
Through the years

Through the years

Although Caritas was created in 1985, some of the hospitals have a much longer history in Boston.

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