For Immediate Release - May 06, 2010

Attorney General's Office Receives Formal Notice of Proposed Caritas-Cerberus Transaction

AG's Office will hold series of public hearings and public comment period

BOSTON - Today, Caritas Christi Health System filed its formal notice of the proposed transfer of the system to Steward Health Care System LLC, an affiliate of Cerberus Capital Management, L.P. Massachusetts state law provides for a review by the Attorney General's Office of any transfer of a non-profit acute care hospital to a for-profit entity. Following that review, final approval of the transaction must be granted by the Massachusetts Supreme Judicial Court (SJC). Today's filing of the notice of the proposed transaction marks the commencement of the Attorney General's review process. The filing is available on the Attorney General's website.

In conducting its review, the law requires that the Attorney General's Office consider the following factors:

  1. Applicable non-profit and charities law;
  2. Procedural due care;
  3. Management of conflict of interests;
  4. Fair and reasonable compensation; and
  5. The public interest.

The Attorney General's Office is committed to conducting its review in a manner that is transparent and that incorporates feedback from community stakeholders and the public at large. The office, in collaboration with the Department of Public Health, which must conduct a separate review of the transaction, will hold a series of six public hearings in the next several months. A hearing will be held in each of the six communities served by Caritas hospitals and the dates, times, and locations will be posted on the Attorney General's website at www.mass.gov/ago/caritas once they are confirmed.

In addition to the public hearings, that Attorney General's Office will also accept written comments during the review process. Individuals or groups who wish to submit comments may do so by mail or email:

Mail:
Attorney General's Office
Non-Profit Organizations/Public Charities Division
Attn: Sara Rau, Caritas Transaction Review
One Ashburton Place
Boston, MA 02108

Email: caritas@state.ma.us

The Attorney General's Office anticipates that, given the size of the transaction, the review process will take a number of months. Once the Office has completed its review, written findings will be prepared and issued. For the transaction to then proceed, approvals will be required from both the Department of Public Health and the Supreme Judicial Court.

##########