Attorney General Martha Coakley Releases Report On Caritas Christi Health Care System, Massachusetts

Main Category: Health Insurance / Medical Insurance
Also Included In: Public Health
Article Date: 07 Mar 2008 - 3:00 PDT

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Massachusetts Attorney General Martha Coakley's Office released a report on its review of the Caritas Christi Health Care System ("Caritas"), conducted in partnership with Health Strategies & Solutions, Inc., a health care consulting firm. The report summarizes the findings of the review and makes recommendations with respect to several priority issues facing Caritas.

"Caritas not only provides critical health care services to thousands of Massachusetts residents, but the system also plays an important role in preserving competition among hospitals in Eastern Massachusetts, which is necessary to restrain skyrocketing healthcare costs," said Attorney General Coakley. "This report provides a useful and practical basis upon which Caritas may continue to address the challenges it faces and achieve stability. Addressing the issues outlined in the report is necessary not only for the communities Caritas serves, but also for the stability and efficiency of the region's health care system."

The report, which was prepared by Health Strategies & Solutions, Inc. identifies four priority issues facing Caritas: the role, structure, and effectiveness of governance; the future of Caritas Carney Hospital, the role of Caritas St. Elizabeth's Medical Center, and the operating performance of the Caritas Physician Network. The report makes a number of recommendations to address each of these priority issues, including:

- Diocesan leadership should relinquish control over strategic, operational, and financial matters to the independent Board of Governors. Diocesan leadership should retain influence only over matters of religious direction.

- Services at Caritas Carney Hospital in Dorchester should be based on current community need, not historical service lines. Carney should consider further developing, as well as expanding, services such as behavioral and ambulatory health, for which there may be a need in the community Carney serves.

- St. Elizabeth's Medical Center in Brighton should continue its realignment as a community teaching hospital, with a concentration on two or three major service lines.

- The Caritas Physician Network, which had an operating loss of nearly $30 million in FY 2007, should evaluate all physician contracts and compensation arrangements in comparison to industry medians and implement a new compensation structure for employed physicians, with greater emphasis on physician productivity.

The process undertaken to conduct this review included data compilation and analysis, as well as the review of previously completed consulting reports and discussions with staff that completed those reports. In addition, Health Strategies & Solutions, Inc. conducted interviews with a variety of parties, including Caritas leadership, local health centers, other Massachusetts hospitals and hospital systems, and insurance providers.

"We appreciate the cooperation we received from Caritas management and the Board of Governor's during this review process, and we hope that the resulting report is helpful to them as they continue their work to serve the community," said Attorney General Coakley. "We look forward to continued work with the Caritas system as they strive to implement these changes in the coming months."

The Attorney General's Office is responsible for overseeing the public's interest in the viability of the Commonwealth's non-profit charitable hospitals. In carrying out this responsibility, the Office of the Attorney General, through its Non-Profit Organizations/Public Charities Division, routinely monitors the financial performance of hospitals. In November 2007, the Attorney General's Office announced that it would partner with Health Strategies & Solutions, Inc. to review the Caritas System. Blue Cross Blue Shield of Massachusetts, Harvard Pilgrim Healthcare and Tufts Health Plan contributed funding for the review.

Established in 1985, Caritas Christi Health Care is a Catholic health care system, associated with the Archdiocese of Boston. It is one of the largest health care systems in New England, and includes Caritas St. Elizabeth's Medical Center in Brighton, Caritas Carney Hospital in Dorchester, Caritas Good Samaritan Medical Center in Brockton, Holy Family Hospital in Methuen, Caritas Norwood Hospital in Norwood, and Saint Anne's Hospital in Fall River.

Office of Massachusetts Attorney General