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Community Hospitals worry about financial health following sale

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caritaschristi logo1 Community Hospitals worry about financial health following sale

A coalition of community hospitals concerned about increased competition after the sale of Caritas Christi Health Care to a private equity firm is asking state authorities to impose restrictions on the way the new owners do business.

The Healthcare Access Coalition – made up of hospitals in Lawrence, Brockton and New Bedford – wants to prevent Caritas’ buyer, Cerberus Capital Management, from using “improper” incentives to recruit their doctors.

The coalition is also asking the state attorney general’s office for a three-year ban on price increases for hospital services.

A lawyer for the coalition tells The Boston Globe that the fear is that Cerberus’ for-profit hospitals could become “predatory” and drive up costs.

Caritas and Cerberus officials refused comment.

A coalition of community hospitals concerned about increased competition after the sale of Caritas Christi Health Care to a private equity firm is asking state authorities to impose restrictions on the way the new owners do business.
The Healthcare Access Coalition – made up of hospitals in Lawrence, Brockton and New Bedford – wants to prevent Caritas’ buyer, Cerberus Capital Management, from using “improper” incentives to recruit their doctors.
The coalition is also asking the state attorney general’s office for a three-year ban on price increases for hospital services.
A lawyer for the coalition tells The Boston Globe that the fear is that Cerberus’ for-profit hospitals could become “predatory” and drive up costs.
Caritas and Cerberus officials refused comment.

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