The Permanent Crisis Continues: Tenet Drops Bid to Rescue Five State Hospitals.

Governor Dannel P. Malloy ends his first term and begins his second with a hospital crisis across from Waterbury to Rockville. Tenet Healthcare Corp. dropped its complicated bid to buy five hospitals. Tenet was in advanced negotiations to purchase Waterbury Hospital, St. Mary’s Hospital, Bristol Hospital, Manchester Memorial Hospital and Rockville Hospital.

Negotiations collapsed Thursday. The way forward in a changing healthcare industry is not clear. Observers expect that absent a dramatic restructuring of the five hospitals, as many as three will not be able to continue as constituted.

Conditions put on the Waterbury and St. Mary’s deal by state healthcare regulators are said to have been too onerous for Tenet, the final frustration in two years of them.