Tenet Healthcare ends discussions to buy Connecticut hospitals

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HARTFORD – After two years of negotiations, Tenet Healthcare Corporation and Gov. Malloy released a joint statement Wednesday afternoon regarding pending hospital acquisitions. The statement said that both sides are ending discussions that would have led to the company to buy four hospitals in the state.

Waterbury Hospital was one of the hospitals up for the potential take-over by the Texas based company. Last month, Waterbury Hospital announced it was laying off 80 full-time employees.

Read the full statement here:

After more than two years of working toward an arrangement under which a subsidiary of Tenet Healthcare Corporation (NYSE:THC), 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.

Governor Dannel P. Malloy stated, “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,” added Governor Malloy.

“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,” said Trevor Fetter, president and chief executive officer at Tenet.

State Senator Len Fasano (R- North Haven), Senate Minority Leader, released a statement in response to the announcement Wednesday afternoon.

“This is a devastating blow to the Waterbury community as well as the entire state,” said Fasano.  “Governor Malloy had the opportunity to close this deal and he failed. It is unfortunately consistent with his lack of leadership over the last two years on this issue.”

“Governor Malloy likes to say Connecticut is ‘Open for Business’ but here is a prime example where he has slammed that door shut.  He slammed the door on a private company that was willing to invest nearly half a billion dollars in Connecticut, and he slammed the door on the faces of Waterbury Hospital employees.”