Steward Health Care System, Boston, and Saints Medical Center, Lowell, Mass., have signed a letter of intent for 104-bed Saints to become part of Steward, according to a joint news release.
Steward Health Care seeks another Catholic hospital
Terms of the deal were not disclosed. The parties hope to finish negotiating an asset purchase agreement in the next 60 to 90 days, said Joe Grillo, a spokesman for Saints.
Saints is a Roman Catholic hospital sponsored by the Sisters of Charity of Ottawa, Canada, Grillo said. It was formed by the 1992 merger of two Catholic hospitals in Lowell, and the hospital will remain a Catholic hospital after its acquisition by Steward, Grillo said. The deal requires approvals from the Massachusetts attorney general, Department of Public Health and Supreme Court, the Archdiocese of Boston and the Vatican, Grillo said.
Steward was formed in November by the conversion of a six-hospital Catholic system, Caritas Christi Health Care, to investor-owned status in a deal valued at $895 million in cash and capital commitments. The Caritas Christi hospitals remain Catholic hospitals, but the archdiocese and Steward's parent, Cerberus Capital Management, retain options regarding the use of Catholic religious and ethical directives. Whether triggered by the archdiocese or Steward, Cerberus would pay $25 million to charity to drop the directives.
Steward now has three pending deals to acquire four hospitals in Massachusetts, including a deal announced last week.
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