In Massachusetts, the transfer of a non-profit, acute care hospital to a for-profit entity is subject to review by the Attorney General's Office under Massachusetts General Laws, Chapter 180, Section 8(A)(d) and approval by the Supreme Judicial Court. In conducting this statutory review, Section 8(A)(d) requires the Attorney General to consider the following factors:
  1. compliance with applicable non-profit and charities law;
  2. conformance with procedural due care;
  3. appropriate management of conflict of interests;
  4. the reasonableness of compensation; and
  5. whether the transaction is in the public interest.

General Information about the AG's Review

To assist the public in understanding this review process, the Attorney General's Office has posted the following information and documents, which together provide a general overview of the review process as well as key documents from a prior review of a hospital sale by the Attorney General's Office:

  1. A link to M.G.L. chapter 180, section 8(A)(d);

  2. A copy of the Attorney General's Guidelines for Transfers of Non-Profit Acute Care Hospitals and HMOs (PDF) pdf format of AG's Guide for Transfers of Non-Profit Acute Care
which provides general guidance regarding the process to be utilized by the Attorney General in reviewing these transactions; and

  3. Relevant documents from the Attorney General's review and decision making regarding the 2002 transaction by which Deaconess Nashoba Hospital was transferred to Essent. Documents are listed below.
  4. Relevant documents from the Attorney General's review and decision making regarding the 2010 transaction by which Caritas Christi Health Care System ("Caritas") transferred the system's assets and operations to Steward Health Care System LLC an affiliate of Cerberus Capital Management, L.P. A full list of documents is available at www.mass.gov/ago/caritas.

Morton Hospital and Medical Center Transaction

Formal notice of the proposed Morton Hospital and Medical Center sale to Steward Health Systems LLC was filed with the Attorney General on May 26, 2011 and the required review has now commenced. A copy of the notice as well as a description of the opportunities available to the public to learn about, and provide comments regarding, the transaction can be found at www.mass.gov/ago/morton.

Quincy Medical Center Transaction

Formal notice of the proposed Quincy Medical Center sale to Steward Health Systems LLC was filed with the Attorney General on July 8, 2011 and the required review has now commenced. A copy of the notice as well as a description of the opportunities available to the public to learn about, and provide comments regarding, the transaction can be found at www.mass.gov/ago/quincy.