Hospital Partners of America, Charlotte, N.C., said it would withdraw its $3 million bid to purchase bankrupt Deaconess Hospital in Cleveland. HPA, formerly known as OrthoNeuro Corp., owns and operates two hospitals with physician investors. Terry Linn, the privately held company's chief development officer, said the company examined the managed-care market in Cleveland and determined that "we could not be successful" there. Linn said HPA had planned to reopen the shuttered hospital as an acute-care hospital by partnering with local physicians. He said other viable offers existed. In a statement, Deaconess attorney Daniel DeMarco said the hospital entered into a binding agreement with HPA that was approved by the bankruptcy court and required HPA to close the deal by March 15. "HPA has admitted that Deaconess Hospital did everything it was required to do under the agreement. HPA, however, failed to close on March 15. So HPA breached the agreement," DeMarco said, noting that the hospital is "pursuing its legal remedies." He said several parties are very interested in purchasing Deaconess, which filed for Chapter 11 protection from creditors in U.S. Bankruptcy Court in Cleveland in November and closed the hospital days later. "We expect to have a firm proposal to present to the bankruptcy court within the next week." -- by Mark Taylor
HPA drops offer to buy Cleveland hospital
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