Akron (Ohio) General Health System has ended exclusive negotiations with Cleveland Clinic and Franklin, Tenn.-based Community Health Systems on a proposed joint venture transaction, according to an Akron Beacon Journal report.
This past August, CHS and Cleveland Clinic pitched a deal in which both systems would acquire the assets of Akron General. The purchase would have included Akron General Medical Center, Lodi (Ohio) Community Hospital and other related healthcare facilities.
CHS and Cleveland Clinic had been working on a definitive agreement since then, but the two parties could not reach a final deal, according to the report. Consequently, Akron General decided to end talks because the process "has taken much longer than we, the board or the community has much patience for," Akron General President and CEO Tim Stover, MD, told the Beacon Journal.
In an email, Tomi Galin, vice president of corporate communications at CHS, said: "CHS and Cleveland Clinic have not reached terms under which a joint venture would be structured, and subsequently, Akron General has notified us that it is ending exclusive negotiations with CHS and Cleveland Clinic. We have appreciated the opportunity to explore a possible relationship with Akron General and understand their decision to end exclusive negotiations at this time."
Akron General will continue its search for a hospital or health system partnership, although no further details were given.
Cleveland Clinic and CHS created a strategic alliance last year to improve quality of care, reduce costs and enhance access to care. The proposed joint venture acquisition of Akron General was one of two the groups announced last year. The other was a possible equity partnership of Metro Health in Wyoming, Mich.
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