Ontario, Calif.-based Prime Healthcare has withdrawn from negotiations to purchase and operate Bayonne (N.J.) Medical Center, according to the Hudson Reporter.
In December, Prime Healthcare expressed interest in buying Bayonne from CarePoint Health, based in Jersey City, N.J. Prime Healthcare didn't cite a reason for withdrawing its bid.
News of Prime Healthcare's abandoned bid comes just days after CarePoint Health sued nursing home chain Alaris Health, the company that owns the land that Bayonne sits on, according to The Jersey Journal.
In the lawsuit, CarePoint claims that Alaris Health is interfering with its efforts to sell Bayonne so that it can turn the hospital into a nursing home.
CarePoint has been searching for a strategic partner for Bayonne since October.
CarePoint already signed a letter of intent to sell its other two facilities, the 363-bed Christ Hospital in Jersey City and the 333-bed Hoboken (N.J.) University Medical Center, to West Orange, N.J.-based RWJBarnabas Health.
Although Prime Healthcare has abandoned plans to purchase Bayonne, there are still two other contenders: Atlantic Health System in Morris Plains, N.J., and Hackensack (N.J.) Meridian Health.