letter to attorney general from supporters of caritas sale

8/8/2019 Letter to Attorney General from supporters of Caritas sale

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September 22, 2010

David Spackman, Esq.Director, Division of Public CharitiesOffice of the Attorney General

One Ashburton PlaceBoston, MA 02108

Dear Mr. Spackman,

On behalf of working men and women throughout the Commonwealth of Massachusetts, we writeto express our continued and unified support for the acquisition of Caritas Christi Healthcare bySteward Healthcare System.

As labor unions and health care consumers we are concerned about the rising costs of healthcareand understand that community hospitals in Massachusetts must have the necessary resources to

provide high quality, lower cost care for patients across the state. We are committed to working tocontrol healthcare costs and to ensure that all Massachusetts residents, particularly the mostvulnerable, have access to a choice of high quality, affordable care. As you know, five out of six ofCaritas hospitals are disproportionate share hospitals, caring for the poorest patients in lower costcommunity settings. We support this merger to ensure community hospitals, like Caritas ChristiHealthcare, are vibrant, viable healthcare institutions that can help to address the rising cost ofhealthcare.

We support the Caritas acquisition not only as a way to provide innovative financing to improveand expand affordable healthcare in communities across Massachusetts, but also because thisfinancing will grow and protect jobs. The communities Caritas Christi serves will benefit from this

acquisition, as Steward Health Care System will immediately invest $116 million to completeimportant renovations and upgrades at each of the system's six hospitals; community members willcontinue to have access to the same health care providers; and communities will continue tobenefit from jobs in the healthcare industry. In these recessionary times, an employer who is ableto expand its workforce, and who has committed to good jobs with good benefits is an employerthat should be applauded as well as supported.

We are also aware that you are in receipt of a letter from concerned competitors of the CaritasChristi Healthcare System and their allies. Much of what the coalition is asking for is alreadycovered by existing law (for example, anti-competitive behavior and improper physicianinducement are already illegal) or would be an unfair burden placed on Caritas when other

hospitals have no such constraints. One proposal asks for restrictions on Caritas participation inlimited network insurance plans, a proposal that runs counter to the recent small businesslegislation enacted in Massachusetts this summer. Furthermore, it is through an existing Caritaslimited network that many of our workers receive high value low cost health care coverage. Wewere therefore concerned to read about these proposals made by Caritas competitors LawrenceGeneral Hospital, Signature Brockton and Southcoast (the Healthcare Access Coalition), whichseems to be trying to simply slow down any merger as a way to preserve their market share and todisadvantage Caritas.


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We believe that regulatory process around the Caritas merger has been thorough, transparent,inclusive of all voices, and conducted at a very reasonable pace. We appreciate the ongoing workby the Attorney Generals office and the Department of Public Health to ensure opportunity for allcommunity stakeholders to weigh in, and a vast and vocal majority of those stakeholders have both

supported the merger and called for a timely approval of its current terms.

We, along with the overwhelming majority of community members, advocates, and electedofficials think this transaction meets the Attorney Generals standards to ensure that it is in thepublic interest and in compliance with applicable non-profit and charities law. We believe thetransaction should be approved without unnecessary delay. Failure to approve this transactionwould jeopardize not only the Caritas Christi Healthcare System, but also healthcare andconstruction jobs.

Robert Haynes Veronica TurnerPresident Executive Vice PresidentMassachusetts AFL-CIO 1199SEIU

Allen R. McWade Michael P. MonahanBusiness Manager Business ManagerIUOE Local 877 IBEW Local 103President of the Area Trades Council

Mark Erlich Rich RogersExecutive Secretary-Treasurer PresidentNew England Regional Council of Carpenters Greater Boston Labor Council

Julie PinkhamSean M. O'Brien Executive DirectorPresident, Principal Officer Massachusetts Nurses AssociationTeamsters Local 25

Francis X. Callahan, Jr.PresidentMassachusetts Building Trades Council


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letter to attorney general from supporters of caritas sale

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