Texas-based Tenet Healthcare has withdrawn a bid to buy five hospitals in Connecticut, citing regulatory demands.
Tenet had been working for more than a year on a plan to buy Waterbury Hospital, St Mary’s in Waterbury and and hospitals in Bristol, Manchester and Vernon. The bid was closely scrutinized by state officials because of Tenet’s intention to convert the currently non-profit institutions to for-profit status.
Last week, the Office of Health Care Access published strict conditions that it wanted to impose before allowing the deal to go through. They included asking Tenet to promise not to change staffing or service levels for five years.
Hospital executives and city officials in Waterbury warned the regulations might put the deal in jeopardy, and now those fears have been realized. Tenet now says its withdrawing its application to buy the hospitals. Its statement says “the approach to regulatory oversight in Connecticut would not enable Tenet to operate the hospitals successfully for the benefit of all stakeholders.”
Waterbury hospital is projecting a loss next year of $10 million, and said a sale is its best hope of remaining viable.
