SISTERSVILLE — A Northern Panhandle hospital has dropped out of a deal to buy Sistersville General Hospital.

Wheeling Hospital Inc. this week said it would not proceed with the transaction.

The decision was “based on (Wheeling Hospital’s) assessment of the overall health care market in the immediate region, as well as the limits such a purchase would likely create as we undertake our own efforts to expand clinical programs and services at Wheeling Hospital,” according to an internal memorandum from Doug Harrison, chief executive officer of Wheeling Hospital.

The Sistersville Hospital Board of Managers, Sistersville City Council and the Sistersville Building Commission last month approved the sale under the terms of an Asset Purchase Agreement with Wheeling Hospital.

“Wheeling Hospital has made the difficult decision to not pursue further discussions with the leadership of Sistersville General Hospital about acquiring the hospital,” Harrison said. “Although not an easy choice by any means, we appreciated the opportunity to explore such an arrangement. As such, Sistersville General Hospital is now able to pursue discussions with other health systems or hospitals about a possible acquisition or partnership.”

Sistersville General was surprised by the decision to withdraw from the transaction, but appreciates the assistance provided by Wheeling Hospital, Linda Leasure, chairman of the Sistersville board, said.

“SGH is in a better position than it was three years ago and that is due in part to the support we received from Wheeling Hospital. This is just another delay; we remain optimistic about SGH’s future,” Leasure said.

The hospital had already started talks with other potential partners, Brandon Chadock, Sistersville General chief executive officer, said.

“There is no doubt that this is a challenging time for the delivery of rural medicine, but our employees have proven they are up to the task, time and time again,” he said. “We have had a lot of opportunity to prepare ourselves for an acquisition and so we are primed and ready.”

Sistersville General employs 170 people and operates three medical clinics, inpatient and outpatient care, a 24-hour emergency room and ancillary services, including laboratory and imaging.