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Daughters of Charity Health System

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Private-equity firm to run Catholic health system

Basil

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.

 

 


Calif. A.G. okays Daughters of Charity sale

cap

California Capitol 

California  Atty. Gen. Kamala Harris has approved Prime Healthcare’s  controversial purchase of six nonprofit hospitals comprising the Daughters of Charity Health System, presumably ending a battle  that has, among other things, divided powerful labor unions.

The Sacramento Bee reported that Harris ”called the deal the largest ever overseen by the office, and it carries a hefty set of conditions requiring Prime to provide charity care ‘at historical levels’ and reproductive care without ‘restriction or limitation’; to spend $150 million on capital improvements at the newly acquired facilities; to cover the pension obligations of 17,000 active and retired employees; and to remain certified to treat Medi-Cal and Medicare patients for a decade.”


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