St. Basil the Great, patron saint of hospital administrators.
A nonprofit hospital system getting a cash infusion from a private-equity! Times have indeed changed in healthcare. Well, at least it shows that healthcare, for all its complexities and troubles, may be a very good investment. Private-equity firms are not known as being composed of romantics.
Los Altos, Calif.-based Daughters of Charity Health System has selected BlueMountain Capital Management, a private investment firm, to manage and operate the system’s six hospitals and medical foundation.
Becker’s Hospital Review reports:
1. “Through the transaction, BlueMountain will give DCHS access to more than $250 million in new capital. The funds will be used for a number of purposes, including investing in physical plant improvements and operations.
2. “BlueMountain will sponsor Integrity Healthcare, an entity owned by BlueMountain, to manage and operate the hospitals and medical foundation.
3. “Under the deal, DCHS and its hospitals will maintain their nonprofit status.
4. “The transaction includes an option for BlueMountain to purchase the health system after three years.