BOSTON – Compass Medical filed for Chapter 7 bankruptcy Monday after abruptly laying off more than 400 employees and closing its doors at 6 locations last week.
Compass Medical announced Wednesday evening that all of its practices will close immediately and advised patients to go to their local urgent care and emergency rooms.
“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,” the healthcare company said in a statement.
Since last week, Compass has mobilized its limited remaining resources to create a website to help patients locate their providers, preserve and access medical records after our closure, and provide a plan to ensure the continuity of care for our 70,000 patients. including the provision of on-call coverage during this transition.
Most of the company’s doctors will join other practices in the community and will aim to connect former patients with them.
“This has been a difficult process for our providers, our employees and the communities we have served for the past 30 years,” said Bruce Weinstein, Chairman of Compass Medical’s Board of Directors. “Once it became clear that closure was inevitable, our extraordinary team has been intensely focused on doing everything in our power to ensure that our patients can make the transition to new practices, knowing that the disruption was inevitable, but committing all our resources to help mitigate where we could.”
Compass operated six medical clinics in South Boston.
For ten years, Compass partnered with Steward Medical to bring medical care to the South Shore. That partnership ended on a sour note last year. The companies sued each other over financial matters.
Last October, a jury in Boston found Compass guilty of fraud, awarding Steward $16.4 million. The attorney representing Steward in that case, Howard Copper of the firm Todd & Weld, LLP, told Boston 25 News that the settlement has since increased, with interest, to at least $25 million. dollars It remains unpaid.
The attorney general’s office told Boston 25 News they were also investigating the reports before the company officially announced its closure.
The AG’s office also created an online form specifically for receiving complaints from Compass Medical, so patients or employees of the company are encouraged to fill it out.
It is available on the front page of their website, click here.
This is a developing story. Check back for updates as more information becomes available.
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