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Article: Harvard Pilgrim eyes bailout building deal.
- Article from:
- The Boston Herald
- Article date:
- December 3, 1999
- Author:
CopyrightCOPYRIGHT 1999 Boston Herald. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Financially embattled Harvard Pilgrim Health Care Inc., seeking to bolster its cash holdings, wants a quasi-public state agency to provide up to $120 million through an unusual real estate deal.
The state's biggest health maintenance organization - with 1.5 million members - is asking an affiliate of the Massachusetts Health and Educational Facilities Authority to buy seven buildings occupied by Harvard Vanguard health centers, then lease them back to the HMO for 30 years.
"It's the equivalent of refinancing your house," said Charles Baker, Harvard Pilgrim's chief executive.
The transaction would provide the HMO with extra cash, since the ...