A potential plan for the trust that runs Warwick Hospital to take over the running of the George Eliot Hospital in Nuneaton will not be taking place.
The hospital in north Warwickshire had been put into special measures following assessments that identified major failings, meaning that it would have to be taken over.
But now the NHS Trust Development Authority has announced that it no longer faces a takeover after “significant improvements” have been made.
South Warwickshire NHS Foundation Trust, which runs Warwick Hospital and the Central Rehabilitation Unit near Leamington, had been keen on the possibility of taking on the task and its chief executive Glen Burley has expressed disappointment.
He said: “We are extremely disappointed with the decision to stop the process to find George Eliot Hospital a long term partner for the future as we firmly believe that an integrated Warwickshire organisation is best for patients and the sustainability of the health economy across Coventry and Warwickshire.
“We understand that this process hasn’t been stopped because of the quality of the bids and we now need to take some time to understand this decision and the impact it will have.”
But Unison and Unite, the unions representing NHS staff, have welcomed the decision.
A Care Quality Commission inspection on April 29 will assess whether George Eliot needs to remain in special measures.