Caritas Christi Health Care (CCHC), a six-hospital system based in Boston, has signed an agreement to be acquired by Steward Healthcare System LLC, a newly formed affiliate of Cerberus Capital Management, in a deal valued at $830 million.
The transaction will cover all pension obligations for current and former Caritas employees, repayment of the system’s outstanding debt, a capital investment to fund operations, and a commitment to approximately $400 million of capital projects, including six major construction projects that will provide immediate upgrades to each of the Caritas Christi hospitals, it says.
The transaction is subject to closing conditions, including approvals from the Massachusetts Attorney General, the Massachusetts Department of Public Health and the Archbishop of Boston.
The purchase agreement also contains the following stipulations that the system will:
- Remain headquartered in the Greater Boston area;
- Keep current management in place;
- Maintain employment levels, and compensation and benefits arrangements;
- Continue to run the Caritas Christi hospitals as Catholic healthcare providers in accord with the Ethical and Religious Directives for Catholic Health Care Services adopted by the U.S. Conference of Catholic Bishops;
- Maintain existing policies on community benefits as well as charitable and pastoral care;
- Maintain medical residency and teaching programs; and
- Respect the commitments that Caritas has made to charitable donors to the system.
Established in 1985, Caritas Christi is New England’s largest community-based hospital network, providing care to patients in eastern Massachusetts, southern New Hampshire and Rhode Island.