After Tenet deal fails, Connecticut system looks to backup plan

Manchester-based Eastern Connecticut Health Network, which owns Rockyville General in Vernon, Conn., and Manchester (Conn.) Memorial, has moved on to another plan after Dallas-based Tenet Healthcare backed out of a deal to acquire the system, according to a Hartford Courant report.

Advertisement

The same week Tenet told ECHN the deal was off, the system sent requests for proposals for a merger or partnership to four large nonprofit systems in Connecticut, according to the report.

ECHN’s sense of urgency about finding a system to partner with is understandable, as it is necessary for it to stay in business. “I would say in two to three years there would be a threat to ECHN’s long-term survival if we don’t partner with someone,” Peter J. Karl, the system’s CEO, told the Hartford Courant. “Consolidation is inevitable, so it’s a matter of getting to the dance on time.”

ECHN isn’t the only one scrambling to find a partner after the Tenet deal fell through. Like ECHN, Waterbury (Conn.) Hospital, which is another facility Tenet was supposed to acquire, has been looking for a system to partner with for years and will now have to start the search process again, according to the report.

 More articles on healthcare industry transactions:

Emory, WellStar in discussions to create new health system
2014: The year of 95 hospital transactions — and more innovative ones at that
10 recent hospital transactions and partnerships

 

At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.

Register to Attend Webinar

From fragmentation to operational flow: Solving the healthcare workforce puzzle

Tuesday, August 11
1:00 PM - 2:00 PM CDT

Presenters: Dr. Pat Hunt, QGendaAndrea Daugherty, MHA, CISSP, CHCIO, CDH-E, Arrowhead Regional Medical CenterElizabeth Lindsay-Wood, MBA, CHCIO, CDH-E, Moffitt Cancer CenterDeb Muro, El Camino HealthJohn Tejeda, D.H.A., MLS, MPAS, DFAAPA, LSSBB, FACHE, Vascular and Neuroscience Institute

Advertisement

Next Up in Transactions & Valuation Issues

Advertisement

Comments are closed.