Sponsored by VMG Health | info@vmghealth.com | 214.369.4888

Tenet says hospital takeover talks in Connecticut are over

Tenet Healthcare, a for-profit hospital operator based in Dallas, and Connecticut Gov. Dannel Malloy have announced the negotiations over Tenet purchasing five nonprofit hospitals in the state are over, according to a Hartford Courant report.

After more than two years of working toward a deal, "we have decided to end our discussions," Gov. Malloy and Tenet said in a joint statement, according to the Hartford Courant. "We believe it is best for the hospitals, their employees and the communities they serve to move forward exploring other options."

Tenet planned to acquire five Connecticut hospitals: Waterbury Hospital, Bristol Hospital, Saint Mary's Hospital in Waterbury, and Eastern Connecticut Health Network, based in Manchester, which owns Rockyville General in Vernon and Manchester Memorial.

However, in December 2014, Tenet called off the deal due to proposed conditions state regulators put on its purchase of Waterbury Hospital.

After the transactions were cancelled, 40 Connecticut lawmakers urged Gov. Malloy to step in and try to get Tenet to reconsider its decision.

In January, Tenet agreed to renew negotiations with Gov. Malloy. However, Tenet President and CEO Trevor Fetter told Gov. Malloy the deal would be called off again if the company didn't get a satisfactory agreement.

Regarding the deal officially being dead, Mr. Fetter said in a statement, "While Tenet is disappointed with the outcome, we wish the hospitals, local community leaders and Gov. Malloy the very best in their effort to build a sustainable future for these and other hospitals in the State of Connecticut," according to the Hartford Courant.

More articles on healthcare industry transactions:

North Shore-LIJ, Maimonides Medical Center exploring partnership
Centura Health deal may keep 135-year-old Colorado hospital open
4 recent hospital transactions and partnerships

© Copyright ASC COMMUNICATIONS 2020. Interested in LINKING to or REPRINTING this content? View our policies by clicking here.

 

Featured Webinars

Featured Whitepapers