Caritas workers, others guardedly optimistic on sale

Globe Staff

Employees of Caritas Christi Health Care hospitals as well as community leaders offered hopeful but wary reaction today to the company's deal to be acquired by New York buyout firm Cerberus Capital Management, while state regulators said it will takes months to scrutinize the deal.

Members of labor unions representing nurses and service workes at the six Caritas Christi hospitals in eastern Massachusetts said the $830 million cash infusion promised by the new buyer could help make needed repairs at medical sites where maintenance has long been deferred. "We're hoping this will take care of our facilities that leak in a rainstorm," said Linda Burton, a nurse at Norwood Hospital.

But employees also said they were concerned about preserving the Catholic hospitals' mission of providing health care to residents of economically struggling communities. Under the plan, Caritas will go from being a nonprofit to for-profit status.

"We accept and treat all patient equally, whether they're on Park Avenue or the park bench," said Maureen Healy, a nurse at Good Samaritan Hospital in Brockton. "We don't want that to change."

Kevin C. Phelan, chairman of Caritas Christi St. Elizabeth's Hospital in Brighton, summed up the view of many supporters of the acquisition, during a luncheon sponsored by the Boston College Chief Executives' Club of Boston that was not related to the hospital deal.

"If [Cereberus’] money is green, and the deal that was negotiated between management and Cerberus is as was represented, I think it’s a very square, fair deal," he said.

Boston Mayor Thomas M. Menino said the hospitals' switch to for-profit will bring the city about $7 million in real estate tax revenue.

"It gives Caritas an opportunity to continue its mission," Menino said. "Part of the agreement between Caritas and this firm is that it maintains its mission, and it also maintains its mission with the Catholic faith."

Attorney General Martha Coakley said her recommendation to the state Supreme Judicial Court -- which must sign-off on the deal -- will not come until a lot of work is completed.

"We have several criteria we look at, including whether this will be in the best interest of the public," Coakley said. "I anticipate it will take several months. It's fairly complicated. There are a lot of individuals involved, even within the Caritas chain, and a lot of money involved."

A union that represents 3,000 Caritas workers said it will review the proposed sales agreement between the state's second largest hospital group and Cerberus.

Caritas and Cerberus formally disclosed their agreement in a statement this morning.

The union representing many Caritas Christi workers is 1199SEIU United Healthcare Workers East.

In a statement, 1199SEIU vice president Veronica Turner said: "1199SEIU members will be reviewing the details of the Cerberus-Caritas accord closely. From a jobs and care perspective, an investment of $830 million in the system should be good news for Caritas workers and patients. 1199SEIU members look forward to working with Caritas management to ensure our shared goal of delivering quality care to our communities remains at the forefront during this process.”

A spokesman for 1199SEIU said that a four-year labor agreement between the union and Caritas Christi went into effect in January.

In today's story, Caritas chief executive Ralph de la Torre told the Globe that if the sale is completed, Cerberus would assume labor contracts that several Caritas hospitals negotiated last year.

Hospitals in the Caritas Christi system include Saint Anne’s in Fall River, Holy Family Hospital in Methuen, St. Elizabeth’s Medical Center in Brighton, Norwood Hospital in Norwood, Carney Hospital in Dorchester, and Good Samaritan Medical Center in Brockton.