Talks Over Between State, Tenet Healthcare on Hospital Deal

The plan for Texas-based Tenet Healthcare to acquire several hospitals in Connecticut has come to an end. After two years of discussions, the talks are over, according to a statement from Gov. Dannel Malloy’s Office.

“After more than two years of working toward an arrangement under which a subsidiary of Tenet Healthcare Corporation, in partnership with the Yale New Haven Health System, would acquire four hospital systems in Connecticut, we regret to announce that we have decided to end our discussions. We believe it is best for the hospitals, their employees and the communities they serve to move forward exploring other options,” Malloy said in a statement.

Tenet Healthcare Corp. was in discussions to acquire Waterbury Hospital, Saint Mary's, Manchester Memorial, Bristol Hospital, and Rockville General Hospital.

In December, the company told investors that it was ending talks with the state after proposed regulations were unveiled. Last month, Malloy offered to renew negotiations.

Today, the governor's office and Tenet released statements saying the negotiations are off.

“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.” Malloy said in a statement.

Trevor Fetter, president and chief executive officer of Tenet Healthcare Corporation, also released a statement.

“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,” Fetter said.

State Senator Len Fason called the breakdown in the deal "a devastating blow" to the Waterbury community.

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