Providence Health Care will drop its lawsuit against Empire Health Services involving some shared operations amid worries that the litigation could stop the sale of Deaconess Medical Center to a for-profit company.
Community Health Systems has received regulatory approval to buy Deaconess for $156 million and planned to complete the transaction Sept. 30. But the company said this week that the lawsuit was a deal-breaker.
Providence, which operates rival Sacred Heart Medical Center, contended the lawsuit was outside the bounds of the sale, arguing that it focused entirely on issues surrounding the joint venture Inland Northwest Health Services.
Dr. Andrew Agwunobi, chief executive of Providence, said they decided to drop the lawsuit to protect health care quality in the region. Providence and Empire have collaborated on air ambulance services, a rehabilitation hospital and an electronic medical records business.
Community Health Systems has received regulatory approval to buy Deaconess for $156 million and planned to complete the transaction Sept. 30. But the company said this week that the lawsuit was a deal-breaker.
Providence, which operates rival Sacred Heart Medical Center, contended the lawsuit was outside the bounds of the sale, arguing that it focused entirely on issues surrounding the joint venture Inland Northwest Health Services.
Dr. Andrew Agwunobi, chief executive of Providence, said they decided to drop the lawsuit to protect health care quality in the region. Providence and Empire have collaborated on air ambulance services, a rehabilitation hospital and an electronic medical records business.
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