With a $56 million debt, Quincy Medical Center filed for bankruptcy on Friday in preparation for sale, according to The Boston Globe. Steward Health Care will buy Quincy Medical Center and make $34 million worth of investments, as the hospital board decided to sell last Monday, according to the Taunton Daily Gazette.
Burdened with debt from renovations, Quincy Medical Center elected to sell the organization, notes the Globe.
"Given the size of our debt, there has to be some negotiations as to how much of the debt is paid down," said Quincy Medical Center's interim CEO John Kastanis in the Gazette article. "The liabilities of the hospital right now exceed assets, and the size of our debt is such that we needed to (file for bankruptcy)."
The bankruptcy and deal are not expected to affect services, according to Kastanis.
"We shouldn't be skipping a beat here at all," he said. "We will be continuing to compete and attracting more patients and doctors here. There should be no disruption in services."
Last year, Steward bought out Caritas Christi Health Care and announced the acquisition of Essent Healthcare's Merrimack Valley Hospital and Nashoba Valley Medical Center, according to Steward's press website. In April, Steward also acquired Morton Hospital and Medical Center to form the largest community-based accountable care organization, according to a press release.
In related news, Beth Israel Deaconess Medical Center in Boston is considering merging with Milton (Mass.) Hospital and Lahey Clinic in Burlington, Mass., according to The Boston Globe.