News & Events

Non-Profit Acute Care Hospital Conversion

First enacted in 2000, M.G.L. chapter 180, section 8(A)(d), provides for review by the Attorney General of any transfer of a non-profit acute care hospital to a for-profit entity.  In conducting her review, the law requires the Attorney General to consider such factors as:

  1. Applicable non-profit and charities law;
  2. Procedural due care;
  3. Management of conflict of interests;
  4. Fair and reasonable compensation; and
  5. The public interest.

Currently two transactions have been announced that will be subject to Attorney General review :

  1. The proposed transfer of Athol Memorial Hospital to an affiliate of Vanguard Health Systems and
  2. The proposed transfer of Caritas Christi Health System to an affiliate of Cerberus Capital Management. 

While the Attorney General has been made aware of both transactions, formal review has not yet commenced and will not formally commence until the transferring party submits its formal notice of the proposed transaction.  Shortly after its submission, the formal notice will be placed on this website for public review and from time to time thereafter additional documents regarding the transactions may be added.

Recognizing, the public’s interest in these transactions, the Attorney General has determined to post the following documents:

  1. A link to M.G.L. chapter 180, section 8(A)(d);
  2. A copy of the Attorney General’s Guidelines for Transfers of Non-Profit Acute Care Hospitals and HMOs (PDF) which provides general guidance regarding the process to be utilized by the Attorney General in reviewing these transactions; and
  3. Relevant documents from the Attorney General’s review and decision making regarding the 2002 transaction by which Deaconess Nashoba Hospital was transferred to Essent. Documents are listed below.

Nashoba Community Hospital
Statement of the Attorney General as to he Deaconess Nashoba Hospital Transaction, dated December 20, 2002 (PDF) 
Notice to Attorney General of Nashoba Community Hospital’s Intent to Sell Assests to Essent (PDF) (Sets forth a summary of Nashoba Community Hospital’s rationale for proposing the sale to Essent)