A private investment firm will make a $250-million cash infusion in a struggling chain of six Catholic hospitals in California under a deal announced Friday, The Los Angeles Times reported on Friday. BlueMountain Capital Management in New York would also oversee management of the chain, called Daughters of Charity Health System, which would keep its nonprofit status. The Daughters of Charity's properties include St. Vincent Medical Center in Los Angeles and St. Francis Medical Center in Lynwood. BlueMountain also would receive an option to buy Daughters of Charity outright after three years. The proposed deal comes four months after Prime Healthcare Services Inc. backed out of plans to purchase Daughters of Charity for $843 million. Daughters of Charity's future has been closely watched because its hospitals employ 7,600 workers and provide needed medical services to a number of lower-income communities.
