For Immediate Release - July 11, 2011

Attorney General's Office Receives Formal Notice of Proposed Quincy Medical Center-Steward Transaction

AG's Office will hold public hearing and accept comments from the public

BOSTON - Quincy Medical Center has filed its formal notice of the proposed transfer of the hospital to a wholly owned indirect subsidiary of Steward Health Care System LLC with the Attorney General's Office, part of its long-term restructuring plan which is also before the United States Bankruptcy Court. The United States Bankruptcy Code was amended in 2005 to ensure that the transfer of non-profit organizations to for profit entities through the bankruptcy process also conforms to state law.

Massachusetts state law provides for a review by the Attorney General's Office of any transfer of a non-profit acute care hospital to a for-profit entity. Following that review, Quincy Medical Center will seek approval of the sale of its unrestricted assets as part of its restructuring filing in the Bankruptcy Court. Quincy Medical Center will also file a petition with the Supreme Judicial Court (SJC) seeking authority to dissolve as a charity and approval of a plan for the disposition of the charity's restricted assets (i.e. donated funds or property). The filing of the notice of the proposed transaction marks the commencement of the Attorney General's formal review process. The filing is available on the Attorney General's website.

In conducting its review, state law requires that the Attorney General's Office consider the following factors:

  1. Applicable non-profit and charities law;
  2. Procedural due care;
  3. Management of conflict of interests;
  4. Fair and reasonable compensation; and
  5. The public interest.

The Attorney General's Office is committed to conducting its review in a manner that is transparent and that incorporates feedback from community stakeholders and the public at large. The office, in collaboration with the Department of Public Health, which must conduct a separate review of the transaction, will hold a public hearing in Quincy during the review process. The date and location of the hearing will be announced shortly.

In addition to the public hearing, the Attorney General's Office will also accept written comments during the review process. The Attorney General's Office will accept comments up until the time it issues its decision. Individuals or groups who wish to submit comments may do so by mail or email:

Mail:
Attorney General's Office
Non-Profit Organizations/Public Charities Division
Attn: Quincy Hospital Transaction Review
One Ashburton Place
Boston, MA 02108

Email:
hospitaltransactions@state.ma.us

Once the Office has completed its review, written findings will be prepared and issued.

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