Compass collapse: State, feds among company’s creditors
Quincy-based company filed for bankruptcy on Monday
The now-shuttered Compass Medical owes money to a handful of state and federal agencies, including the Securities and Exchange Commission, Massachusetts Attorney General’s Office, Internal Revenue Service, and state Department of Unemployment Assistance, according to a Wednesday filing in bankruptcy court.
The court document does not list the amounts owed to each creditor but a separate filing from earlier this week says Compass Medical has between 100 to 199 creditors, assets of between $10 million and $50 million, and liabilities of between $1 million and $10 million.
Other entities the Quincybased health organization listed as creditors include the Braintree Electric Light Department, Comcast, state Department of Revenue, Eversource Massachusetts, Fedex, Whitman’s Flowers Forever, Pfizer, the Plymouth County Sheriff’s Civil Process Division, and the Taunton Municipal Light Plant, among others.
The Herald reached out late Wednesday to several of the listed creditors like the Attorney General’s Office and Massachusetts U.S. Attorney’s Office.
The healthcare group announced earlier this month its immediate intention to close all of its facilities, a move that came as a shock to patients and has prompted at least one lawsuit that accuses the company of “patient abandonment.”
Compass Medical Board President Dr. Bruce Weinstein has said the need to close the company became clear at the end of May “when our plan to continue operations collapsed.”
“Since that time, Compass has mobilized its limited remaining resources to stand up a website to assist patients locate their providers, to preserve the medical records and access to them after our closure, and to provide a plan to assure continuity of care for our 70,000 patients including the provision of on-call coverage during this transition,” he said last week.
State officials have said they are looking into the closure of the roughly 450-employee business.
Compass Medical filed for bankruptcy on Monday, listing attorneys from Murphy & King as their lawyers.
Compass Medical was convicted on 10 counts of fraud in October 2022 after a 15-day trial in Boston and was ordered to pay Steward Medical Group, a Dallasbased healthcare company, $16.4 million.
Compass had originally sued Steward in 2017 over failure to pay bonuses to doctors and make rental payments, but a jury instead sided with Steward.
The list of Compass Medical creditors names Steward Medical Group, but it is unclear if that is related to the 2022 ruling.
Compass Medical has proposed an “unwind plan” that includes recommendations on how to maintain former patients’ medical records, Weintein said in a Wednesday statement to the Herald.
“It will be the trustee’s decision as to whether or not to accept entirely, modify or replace this plan and the trustee’s responsibility to assure preservation of and access to medical records in accordance with state and federal regulations,” Weinstein said.