The sudden closure of a group of medical centers based out of Quincy is turning heads at top levels of state government, with the Healey administration saying they are “concerned” by Compass Medical’s decision to shutter all of its facilities in Massachusetts.
Compass Medical, which has 450 employees in the state, announced an “imminent plan” to close all of its facilities in a statement posted to its website Wednesday that left many scratching their heads. It comes after the company lost a lawsuit to a Dallas-based physicians group, costing them millions.
At an unrelated press conference inside the State House Thursday, Gov. Maura Healey said anytime someone’s access to health care is interfered with, “that’s troubling.”
“It’s very concerning and distressing, and I think I appreciate the real distress that causes for patients out there affected by this,” Healey told reporters. “We are working closely with our secretary of Health and Human Services, who has already reached out to learn more information about what is going on, and what can be done to ensure that patients continue with care. That continuum of care is so, so important.”
Healey said her office has been in touch with the Attorney General’s Office, adding that Compass Medical is a physician’s group, which means it is not licensed by the state. A spokesperson for the Executive Office of Health and Human Services said the administration is “concerned” by reports of the closure.
A spokesperson for Attorney General Andrea Campbell said the office is gathering information on the closure and is in “close communication” with the Healey administration.
“Affected consumers and patients are encouraged to contact the AG’s office to share their concerns,” the spokesperson said.
Compass Medical has facilities in Brockton, South Weymouth, Attleboro, Dorchester, Milton, Taunton, North Easton, Bridgewater, and Stoughton, among other places.
“After a steady stream of challenges, we were ultimately forced to make the devastating decision to close all offices of Compass Medical PC. effective immediately,” the statement said. “There is no good way to share this news. We are heartbroken and truly sorry as we know the unprecedented impact on our valued patients.”
In a Thursday statement, Compass Medical Board President Dr. Bruce Weinstein said “most” physicians at the company will continue to provide medical care in their local communities as part of other practices. Medical records will be preserved and available pursuant to federal and state regulations, the statement said.
“Compass will be updating the website regularly with information on how patients can contact their physician in their new practice setting and how they can obtain access to their medical records,” Weinstein said.
It was not immediately clear how many physicians worked at Compass Medical, and a spokesperson for the state Board of Registry in Medicine, which licenses physicians in Massachusetts, did not immediately return a request for comment.
The closure comes after a jury ordered Compass Medical to pay $16.4 million to Dallas-based Steward Medical Group following a Fall 2022 multi-day trial in Suffolk County Superior Court, according to court records. Steward Medical Group owned Quincy Medical Center, which closed in 2020.
Compass Medical originally sued Steward Medical Group in 2017, accusing the Dallas company of failing to give incentive payments to Compass doctors and failing to “make rental payments for office space and for medical equipment leased by compass on SMG’s behalf,” the lawsuit said.
But the jury instead sided with Steward Medical Group, finding that Compass Medical engaged in a breach of contract, intentional misrepresentation, negligent misrepresentation, and unjust enrichment, according to a jury verdict form dated October 2022.
The case status is listed as open as of Thursday and a court hearing was last held on April 27, according to court records.
A spokesperson for Steward Health Care — the parent company of Steward Medical Group — said Compass Medical lost a $16.4 million verdict, was found guilty, and convicted on 10 counts of fraud.
“Compass has not paid Steward any part of that claim and has nothing to do with them going bankrupt,” the spokesperson said. “… We understand how difficult this is for the community, in the wake of the fire at Signature Healthcare Brockton Hospital, the expected closure of Compass Medical will create even more restrictions on access to care for patients.
”The Steward Health Care spokesperson said the company is planning a series of job fairs over the next week to help Compass Medical clinicians and employees find jobs “that allow them to continue to serve their patients in the local community.”