Thursday, July 2, 2015

Private firm buys 6 Catholic hospitals

"The hospitals will remain Catholic" - and start paying taxes

Private firm buys 6 Catholic hospitals

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Up in Boston, private equity giant Cerebrus Capital Management LP of New York (headed by truth-telling ex-Bush Treasury secretary John Snow, but best known for its disastrous Chrysler investment before the automaker's bankruptcy) has agreed to pay $830 million for six Catholic hospitals in the Caritas Christi network.

Presumably Cerebrus hopes to sell the hospitals at a fat return a few years off. The hospitals will now earn profits and pay taxes. Yet the church "will retain a stewardship role" and "the hospitals will remain Catholic," and still treat the poor, the hospitals say. The deal still requires church and state approval.

Where's the money going? Half for "capital expenditures" over the next four years, a quarter to shore up pensions (the system employs 12,000, making it about as large as Newtown Square-based Catholic Health East), the rest split between "immediate construction" and debt retirement. More from Boston Herald, Boston Globe, BusinessWeek, Wall St Journal

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About this blog

PhillyDeals posts drafts, transcripts and updates of Joseph N. DiStefano's columns and stories about Philly-area business, which he's been writing since 1989.

DiStefano studied economics, history and a little engineering at Penn and taught writing at St. Joseph's. He has written thousands of columns and articles for the Inquirer, Bloomberg and other media, wrote the book Comcasted, and raised six children with his wife, who is a saint.

Reach Joseph N. at JoeD@phillynews.com, distefano251@gmail.com, 215.854.5194 or 302.652.2004.

Reach Joseph N. at JoeD@phillynews.com or 215 854 5194.

Joseph N. DiStefano
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