Massachusetts Attorney General Martha Coakley says she'll back the sale of the nonprofit Caritas Christi Health Care System to a private equity firm under conditions that protect the quality of care, and maintain jobs.
Coakley announced Wednesday that after a five-month investigation of the sale of the six hospitals to New York-based Cerberus Capital Management the restructured deal complies with state law.
The attorney general's approval was needed because Cerberus wants to make the hospitals for profit.
Coakley says new provisions in the agreement bar Cerberus Capital Management from selling or closing any of the hospitals for three years and the deal will help all six hospitals, which have been struggling to stay open.
"This resolves that issue for them and I think will help strengthen health care in general in Massachusetts," Coakley says.
Various state agencies will have to decide whether to approve the deal.
The restructured deal maintains the jobs of 12,000 current employees, creates up to 4,000 new jobs and ensures $400 million in capital improvements.
Caritas has hospitals in Boston, Norwood, Brockton, Methuen and Fall River.
Timothy Price, managing director for Cerberus, said the company would not comment.
This program aired on October 6, 2010. The audio for this program is not available.