Monday, October 4, 2010

Cerberus Capital's Catholic Option

Hell hound Cerberus Capital Management entered into a deal to buy Caritas Christi Health System, the largest nonprofit community hospital system in New England.  The deal includes an option to drop the system's Catholic nature in return for $25 million.

Caritas Christi was established in 1985, yet the Catholic identity of individual hospitals goes back to 1863.

Carney Hospital 1863--147 years
St. Elizabeth's 1888--122 years
Good Samaritan 1902--108 years
St. Anne's Hospital 1906--104 years
Holy Family Hospital 1950--60 years
Norwood Hospital 1997--13 years

As for the Caritas Christi Health System, their website states:

Our Mission is our reason for being:

Caritas Christi Health Care, rooted in the healing ministry of Jesus, is committed to serving the physical and spiritual needs of our community by delivering the highest quality care with compassion and respect.

Jesus has been optioned.  The $25 million "Christ buyout" equates to $45,000 per year of Catholic affiliation (554 years among the six hospitals).  Will the hell hound go against its nature?

Update 1-26-24:  American Prospect summarized the damage Cerberus and Steward Healthcare did to Massachusetts hospitals.  Steward hired a restructuring advisor and may be headed to bankruptcy.

Update 3-7-24:  Now that the PEU boys have stripped Steward Health of vital resources, it's carcass has a recovery plan.  The state of Massachusetts has had enough of Steward's mismanagement. 

Update 3-8-24:  Axios did a story on Cerberus and Steward.  It accuses Cerberus of acting naively.  Haahaahaahaaa!  Once again the smartest guys in the room go stupid...

Update 6-16-24:  "Cerberus pocketed $782 million for itself and its investors from its ownership of Steward."