Hartford HealthCare has broken off merger talks with Day Kimball Healthcare, blaming Gov. Dannel P. Malloy's plan to cut Medicaid reimbursement payments.
The groups had announced in July they were exploring an affiliation. The merger would have had the 122-bed Day Kimball Hospital in Putnam join the network that includes Hartford, Backus and Windham hospitals, MidState Medical Center and The Hospital of Central Connecticut.
The Malloy administration announced last month it was planning more than $102 million in budget cuts to keep the state's $20 billion budget in balance. About $63.4 million would come from the Department of Social Services in the form of state Medicaid payments to hospitals.
Hartford HealthCare says because of the cuts, it can't afford a major capital expenditure now.