2010 Figures Reveal Profitability – Not Financial Doom
The long-delayed release of the Ernst & Young LLC audit of financial data for the Caritas Christi Health Care system for FY 2010 showed the 6-hospital chain of the Archdiocese of Boston was healthy – not “struggling” or in dire financial straits.
The figures posted on the website of AG Martha Coakley, which were publicly delayed for close to a year, show a $16,787,000 excess of revenue over expenses for the period – even with some expenses increased considerably, thereby reducing the amount of the profit.
“CEO Ralph de la Torre’s meeting in California back in Nov. 2009 with wheeler-dealer Robert Nardelli of the controversial Cerberus venture capital giant, which ended with a handshake deal to sell Caritas, was a disgraceful abuse of fiduciary responsibility to donors,” said R. T. Neary, Chairman of the Coalition To Save Catholic Health Care.
“And it paved the way for a series of inaccurate statements and now-proven untrue assertions of financial woes for the Catholic hospital system,” he added.
The independent audit conducted by Ernst & Young revealed not only Caritas’ profitability, but also significant changes in financial data previously released to authorities and the public. The Coalition has challenged the perfunctory governmental oversight throughout the process. At least one of the Caritas statements has been shown to be off by tens of millions of dollars.
“Caritas officials took deductions to reduce their profitability, including substantial double-digit increases in both depreciation and the provision for bad debts”, stated John O’Gorman, the Coalition’s Director of Media and Research.
Caritas Christi Health Care transferred its assets to Steward Health Care LLC, a new entity created as a subsidiary of Cerberus Capital Management L.P., on November 8, 2010.