Cerberus Capital completes Caritas deal

New York City-based private-equity firm Cerberus Capital Management has acquired Boston's six-hospital Roman Catholic health system, Caritas Christi Health Care, in an $895 million transaction.

The hospitals and health system will continue to operate under current leadership following the transfer to Steward Health Care System, a newly created subsidiary of Cerberus, a news release said. The transaction includes six acute-care hospitals, the Caritas Physician Network, the private Catholic Laboure College and the international medical relief organization Por Cristo.

Steward Health Care System will operate the former Caritas Christi entities as for-profit, tax-paying businesses, but will continue to provide established levels of free care and community benefits, the news release said. The deal calls for the system to continue adhering to Catholic Ethical and Religious Directives.

The proceeds of the $895 million sale will be used for the assumption of pension obligations, repayment of existing debt and capital projects including “immediate upgrades” to the six hospitals, the release said. Ralph de la Torre, CEO of Steward, said in a statement that the system is also working to create a new accountable care organization.