Officials at Bon Secours Hospital in Grosse Pointe, Mich., and St. John Hospital and Medical Center in Detroit disagree over their chances of resuming joint-venture talks.
The Roman Catholic hospitals serving adjacent communities had been in discussions for more than two years when talks broke off this spring.
Bon Secours is a 311-bed stand-alone hospital owned by Marriottsville, Md.-based Bon Secours Health System.
St. John, with 607 beds, is part of Detroit-based St. John Health System, which is owned by Sisters of St. Joseph Health System in Ann Arbor, Mich.
The deal would have had the two hospitals splitting revenues according to the value of their assets, with 28% going to Bon Secours and 72% going to St. John.
Discord came when Bon Secours wanted revenues from St. John's nonhospital services included in the joint venture. Timothy Grajewski, St. John's president and chief executive officer, said Bon Secours wanted to share capital and management at the system level, "and frankly that's something we weren't bargaining on."
But Henry DeVries Jr., CEO of Bon Secours of Michigan Healthcare System, blamed St. John for straying from a memorandum of understanding by calling the deal an acquisition. He said his hospital is not for sale.
Grajewski said it wouldn't surprise him for talks to resume within the year, but DeVries said it's not likely.
DeVries said talks would wait for St. John Health System to reorganize under a new CEO, Anthony Tersigni, who takes office in December.
He said Tersigni "has a different view of the relationship" than other St. John officials.