Compass Medical, a group of six Massachusetts clinics, closed abruptly and still owes $16 million to Dallas-based Steward Healthcare as part of fraud damages awarded to the health system from an October 2022 lawsuit, local news outlet WCVB reported June 1.
Steward and Compass had been partners for 10 years. The partnership went sour after a series of lawsuits and a Boston jury found Compass guilty of fraud.
The Patriot Ledger reported that Compass had initially sought $80 million in damages based on claims that Steward failed to pay physicians' bonuses and rent for equipment and office space.
Howard Cooper, the attorney representing Steward, told Boston 25 News that with interest, the $16 million figure has grown to at least $25 million.
"Steward has no role or responsibility in the financial management or operations of Compass. They lost a $16 million verdict to Steward and were found guilty of fraud. Compass has not paid Steward any part of that claim and has nothing to do with them going bankrupt," a Steward spokesperson told WCVB.
The health system said it would hold a job fair for laid-off Compass employees.