Massachusetts Attorney General Martha Coakley approved the sale of bankrupt nonprofit Quincy Medical Center to for-profit Steward Health Care System LLC, while imposing many conditions.
Coakley also signed off on Steward’s purchase of Morton Hospital in Taunton.
In addition to spending between $44 million and $54 million on facility upgrades for Quincy Medical, which Steward had promised, the acquirer must not sell it for five years and must spend between $10 million and $20 million to meet capital needs for the next five years after that.
Among other provisions, Steward must pay $35 million to $38 million toward community hospital’s outstanding bankruptcy debt.
Quincy Medical in June filed for Chapter 11 protection in the U.S. Bankruptcy Court for the Central District of Massachusetts in Worcester. It is looking to restructure $56 million of Series 2008A revenue bonds issued through the Massachusetts Health and Educational Facilities Authority.