Catholic Health World

Steward buys six-hospital Caritas Christi

Newly formed Steward Health Care System, part of Cerberus Capital Management, has acquired Boston-based Caritas Christi Health Care, a six-hospital system.

Through the sale, Steward is paying $895 million to Caritas to assume pension obligations, repay the system's debt and fund its operations and capital projects. Of this amount, $400 million goes toward infrastructure improvements.

The deal puts Steward in control of Caritas' Carney Hospital of Dorchester; Good Samaritan Medical Center of Brockton; Holy Family Hospital of Methuen; Norwood Hospital of Norwood; Saint Anne's Hospital of Fall River; St. Elizabeth's Medical Center of Brighton; and Caritas' physician network, hospice, home care, college and international aid arm.

The system retains the Caritas moniker and continues to follow the Ethical and Religious Directives for Catholic Health Care Services. It now is a for-profit facility.

Dr. Ralph de la Torre remains Caritas' president and chief executive. He said Steward plans to invest in the Caritas hospitals to build a strong accountable care organization.

Caritas had been exploring how best to address long-term financial difficulties since at least 2006. It had considered remaining an independent facility, affiliating with another Catholic health care system and transferring its assets to a joint venture made up of both for-profit and not-for-profit participants. When these options proved unfeasible, it began negotiations with Steward.

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