February 4, 2015

Tenet officially ends CT hospital acquisition talks

For-profit hospital operator Tenet Healthcare Corp. won't be entering Connecticut after all.

Tenet and Gov. Dannel P. Malloy released a joint statement Wednesday saying both sides have failed to come to an agreement that would allow the Texas-based healthcare company to acquire five Connecticut hospitals.

Both sides say they have ended negotiation talks and will not try to revive the deals.

"…we regret to announce that we have decided to end our discussions," Malloy and Tenet CEO Trevor Fetter wrote in a joint statement. "We believe it is best for the hospitals, their employees and the communities they serve to move forward exploring other options."

The dissolution of talks comes after Tenet and the Malloy Administration promised in January to try to revive the deals, which included Tenet buying Waterbury, St. Mary's, Bristol, Manchester Memorial, and Rockville General hospitals.

Tenet had spent two years trying to make its Connecticut acquisitions, but abruptly pulled out of its planned acquisition of Waterbury Hospital in December after state regulators issued 68 conditions on the purchase that barred layoffs and price increases for at least five years and mandated the appointment of an independent monitor and the filing of strategic spending and hiring plans.

In a statement, Malloy said, "The environment for both providers and state government is complex and rapidly changing. Unfortunately, the issues that separated us simply could not be overcome. We will continue to work with the hospitals, the affected communities, and our colleagues in the legislature to come up with smart, creative solutions that will preserve local access to care for all patients."

Meantime, Fetter said "While Tenet is disappointed with the outcome, we wish the hospitals, local community leaders and Governor Malloy the very best in their effort to build a sustainable future for these and other hospitals in the State of Connecticut."

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