The board of governors of Dunn Memorial Hospital issued a statement to the Times-Mail of Bedford that says the hospital "no longer wishes to continue affiliation discussions" with Clarian, which operates Bedford Regional Medical Center.
The Lawrence County Council voted 7-0 last night to support the ending of talks, the Times-Mail reported.
In spite of those moves, the CEO of the Clarian-owned hospital said he's moving forward with due diligence on a potential merger.
"The information we have today indicates the Lawrence County Council remains supportive of BRMC and Dunn continuing consolidation discussions and the due diligence process," CEO Brad Dykes said in a statement posted on the Times-Mail Web site.
"We intend to invite Dunn Board members and Lawrence County Council representatives to a meeting to update the progress of the due diligence work plan," Dykes said in the statement. "Our ultimate goal to unify hospital and healthcare services for our community remains our focus."
Dunn and Clarian signed a letter of intent on Sept. 17, cutting off talks between Dunn and Indianapolis-based St. Vincent Health. St. Vincent had offered to lease Dunn's facility for five years.
Clarian, St. Vincent and other Indianapolis hospitals systems have been increasingly active in trying to acquire smaller hospitals around the state. Clarian also has signed letters of intent to acquire hospitals in Bloomington, Hartford City and Muncie.