The board of Quincy (Mass.) Medical Center has approved a “capital partnership agreement” with Boston-based Steward Health Care System, according to a statement from the 116-bed hospital's interim CEO.
Mass. hospital OKs deal with Steward
The statement, attributed to interim CEO John Kastanis, did not provide any further details about the agreement, such as financial terms or any financial or operational commitments made by investor-owned Steward. Christopher Murphy, a spokesman for Steward, confirmed that the company has made an agreement with Quincy, but he referred all follow-up questions to Quincy.
A Quincy spokeswoman who supplied Katsanis' statement was not able to respond to follow-up questions at deadline.
Private-equity firm Cerberus Capital Management formed Steward last year to acquire six-hospital Caritas Christi Health Care and convert it to for-profit status. Since then, Steward has acquired two other investor-owned hospitals in Massachusetts and has deals in place to acquire two other not-for-profits in the state besides Quincy. Earlier this month, Steward agreed to acquire 133-bed Landmark Medical Center, Woonsocket, R.I., and its sister facility, 70-bed Rehabilitation Hospital of Rhode Island, North Smithfield, for a bid worth $71.6 million to $76.6 million.
Converting a hospital from tax-exempt to investor-owned status requires approvals from the Massachusetts attorney general and the Massachusetts Supreme Judicial Court, as well as approval by the state department of public health to transfer the license.
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