Policy & Regulation News

Quincy Medical Closure Delayed by Noncompliance

By Ryan Mcaskill

Potential contract and law violations could keep Quincy Medical Center from closing by the end of 2014.

- Earlier this month, RevCycleIntelligence.com covered the closure announcement of Quincy Medical Center, which serves patients in the Greater Boston area. It would be closing its inpatient services on December 31, 2014. This is due to several factors including Medicare and Medicaid reimbursement and tough competition. By the end of the year, the hospital is expected to lose $20 million.

Now, however, it appears that not only will the closure date be pushed back, but it may not be closing at all. The reason for this is Steward Health Care System. The organization purchased Quincy Medical Center in 2011 for $100 million, saving it from bankruptcy, but has decided to close the facility.

According to the Massachusetts Attorney General’s Office’s business and labor bureau, the closure could violate two statutes – one agreement and one law. The first is part of the purchasing contract that stated the hospital would remain open for at least 10 years after the deal was completed in 2011 and Steward would give 18 months notice if it was to close. The second is a law that requires Stewart to give 90 days notice of a closure and schedule a hearing on the proposal.

“Although we do not agree with many of your contentions, this office is willing to discuss your contentions prior to pressing our contractual rights in court,” a letter to Steward from the Attorney General’s Office read.

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  • In a meeting held earlier this week, several State representatives and Senators, along with the Quincy City Council, drafted a letter to the Attorney General, encouraging it to enforce the purchase agreement.

    “The 90 day notice requirement, which we strongly urged the Attorney General to enforce in this case, exists so that state agencies can sufficiently assess the community’s needs and carefully plan for a safe and smooth transition,” Sen. John Keenan (D-Quincy) said in a statement. “With this change, we understand that Steward is now committed to working closely with the Department of Public Health over the next 90 days to ensure appropriate continuity of access.”

    Steward officials have pushed the closure date back to February 4, 2015 but still plan to close the facility. It could be earlier of patient demand were to dry up before than.

    “As patient census continues to decline, we will be winding down operations in consultation with the Department of Public Health to ensure patient safety throughout this process,” said Steward spokeswoman Brooke Thurston. “The hospital will cease operations as dictated by patient volume, employee and community needs.”

    Thurston added that the hospital would continue to wind down operations in consultation with the Department of Public health to ensure patient safety.

    This situation is very much still in limbo. A public meeting has been scheduled for December 2 and there is still the lingering threat of legal action from the State.