Winthrop (Mass.) Hospital, a 92-bed facility operating under bankruptcy protection, is trying to strike a deal with medical developers and unnamed providers following the withdrawal of a purchase offer by Boston University Medical Center Hospital and a community health center.
Five prospective purchasers have expressed interest in the community hospital, which filed under Chapter 11 of the federal bankruptcy code in April 1992, said Winthrop spokesman Larry Keller. The prospects range from community hospitals to a teaching hospital, along with local developers of medical facilities, he said.
Under one possibility, a medical developer may provide funding for a project involving a hospital and medical groups, Mr. Keller said. He added that it "might change the focus of the hospital" to non-acute uses such as assisted living arrangements.
Winthrop Hospital lost $6 million in 1991 but finished $500,000 in the black in 1993, Mr. Keller said. Quorum Health Resources has been managing the hospital for nearly two years.
In February, Boston University's hospital proposed a joint venture with the East Boston Neighborhood Health Center to purchase Winthrop for $2.75 million in cash. They planned to spend as much as $2 million for renovation and to loan Winthrop $1 million (Feb. 21, p. 19).
But the deal was withdrawn on March 30 after a review "taking into consideration the trends in healthcare delivery pertaining to ambulatory and inpatient services," according to a joint statement issued by Elaine Ullian, the university hospital's president and chief executive officer, and Jack Cradock, CEO of the health center.
Spokeswoman Joanne Jaxtimer said executives reassessed the need for acute-care beds and concluded they could serve the neighborhood-an island behind Logan International Airport-with the current 333-bed university facility, which is five miles to the southwest.