QUINCY, Mass.— Quincy Medical Center filed for Chapter 11 bankruptcy, the same week it announced that the 116-bed hospital will be acquired by Steward Health Care System. The hospital said in court documents that it filed for bankruptcy “for the purpose of consummating a sale of its assets on a going concern basis to Steward Health Care System.” It also filed a motion seeking approval for the proposed sale by October. Quincy’s board had approved the “capital partnership agreement” with Boston-based Steward. Since then, the hospital has not provided further information about the deal, including financial terms. “Quincy Medical Center has filed Chapter 11,” Quincy interim CEO John Kastanis said in a statement. “This filing will allow our selected capital partner a predictable and manageable process forward. The filing will allow Quincy Medical Center to restructure its debt and reorganize its operations. It will not result in any disruption to patient care, or any day-to-day operations.”
NEW CASTLE, Del.— PHC, which does business as Pioneer Behavioral Health, has completed its acquisition of 53-bed Meadow Wood Behavioral Health System, New Castle, Del., according to a news release. Pioneer, based in Peabody, Mass., agreed in March to acquire Meadow Wood for $21.5 million. In May, PHC agreed to a deal that will combine Pioneer with Acadia Healthcare, a Franklin, Tenn.-based psychiatric hospital operator run by the former management team of Psychiatric Solutions. The combined company will use the Pioneer name but be based in Franklin. The deal is expected to close this summer, according to Pioneer. Meadow Wood’s seller is Universal Health Services, King of Prussia, Pa. Universal agreed to divest Meadow Wood and three other psychiatric hospitals in an agreement with the Federal Trade Commission that cleared the way last November for Universal’s $3.33 billion acquisition of Psychiatric Solutions. The FTC approved the sale of Meadow Wood last month and is reviewing the sale of two Las Vegas psychiatric hospitals too.
Quincy Medical Center filed for bankruptcy and announced its acquisition by Steward Health Care System in the same week.