FAQs
| Q: | Who is Cerberus Capital Management?
Cerberus Capital Management is a private investment firm based in New York. |
| Q: | Why are we doing this deal?
The significant injection of capital that Cerberus brings to the table will provide security and stability for our organization and our individual employees. And it ensures the long-term viability of our pension plan. But more important, it means the technology and renovations to continue to attract exceptional colleagues and provide the world-class care our communities deserve. |
| Q: | Why now?
Because people need world-class health care now. The significant capital involved in this acquisition will go right to work on major investments in hospital infrastructure, technology and recruitment of top-tier physicians. The immediate need to fund these projects and provide security for the CCHC pension plan, combined with the limited funding options provided by the bond market, made additional capital sources a timely priority. |
| Q: | What are the next steps in the process of this acquisition? Who needs to approve it?
Right now we are in the in-depth due diligence portion of the deal. Once a definitive agreement is in place between CCHC and Cerberus, there will be an approval process required by the Attorney General and the Massachusetts Department of Public Health. |
| Q: | What are the advantages of being a taxable company?
Paying taxes is another way we can contribute to the vitality of our communities. As a taxable health care institution, we’ll have access to a wider variety of capital sources and markets. In other words, access to more resources. We can improve our current family of hospitals, add to them and recruit additional top-tier physicians and colleagues, spreading our vision of world-class health care to more communities. |
| Q: | What is the difference between “taxable” and “not for profit”?
We feel that given our commitment to mission, charity care and community, taxable is a better representation of who we are. Caritas, its commitments and its values are not changing, except now we pay taxes. |
| Q: | Will an effort to grow profits impact patient care?
Providing our patients with the highest quality care is why we get up in the morning. It is our guiding light. From the caregiver who greets the ER walk-in to the doctor who sits in the corner office. All decisions regarding the services we offer will be made by hospital leadership in conjunction with medical staff, with our patients’ best interests in mind. |
| Q: | Does taxable health care change the mission of Caritas Christi of serving those in need?
No. It makes it possible to reach more people with world-class care. People who live in and work in the communities around our hospitals. |
| Q: | What role will the Church play?
The Church will hold a stewardship role with the new Caritas Christi Health Care System. The six Catholic hospitals that make up Caritas Christi Health Care will remain Catholic. |
| Q: | Will there be a change in leadership as a result of this acquisition?
No. The new company will be run by our current management team, led by our current President and CEO, Ralph de la Torre, M.D. We will also remain a Massachusetts-based company, with our headquarters in the greater Boston area. |
