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Mass. Attorney General Backs Sale of Catholic Hospital Chain

October 7, 2010, 12:01 pm

Massachusetts Attorney General Martha Coakley has recommended approval of a deal to turn the nonprofit Caritas Christi Health Care system into a chain of for-profit hospitals, says The Boston Globe.

The report issued yesterday by Ms. Coakley’s office imposes several conditions intended to assure that the buyer, Cerberus Capital Management, keeps the six Boston-area Catholic hospitals open for at least five years, fully finances pensions for their workers and retirees, and pays for continued state oversight of the institutions.

Cerberus must still secure approval from the state’s highest court, which has final say on the transfer or charitable assets into private hands, and must obtain new hospital licenses from state regulators.

Caritas officials have said the cash infusion from the sale is necessary to maintain and improve the hospitals, but critics of the proposed deal have raised concerns about its impact on the hospitals’ church affiliation and provision of charity care.

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One Response to Mass. Attorney General Backs Sale of Catholic Hospital Chain

cdowpensioners - October 10, 2010 at 5:40 pm

The employees of this hospital system should thank the Attorney General for her defense of their pension plan. Without her negotiations, the employees could have been left with nothing. These “church plans” are not regulated or insured. This needs to change now! There are countless church employees who are in financial jeopardy. Contact your US Senators and Representatives and ask them to change the law.