A controversial public-private partnership which has already cost a council leader his job has been thrown into disarray after a key player pulled out.
The Cornwall Strategic Partnership was designed to bring together the council, healthcare organisations and big business in the form of BT to share services.
But at a behind-closed-doors board meeting of the Royal Cornwall Hospital Trust (RCHT), members decided to terminate their involvement.
Lezli Boswell, chief executive of the RCHT, said in a message to staff: "I want to let you know that yesterday the RCHT Board agreed to formally withdraw from the Cornwall Strategic Partnership – the project with Cornwall Council and other healthcare partners to develop shared services in Cornwall.
"The Board decision was made following changes to the scope of the project and consideration of legal advice.
"The Trust will now pursue alternative options for developing our IT and health records services to meet future staff and patient needs."
The withdrawal of the trust will undoubtedly be a blow to the partnership which now has just three members; Cornwall Council, Peninsula Community Health, the private company running cottage hospitals in the county, and Cornwall Partnership, the NHS trust in charge of mental health services.
A spokesman for Cornwall Council said they must now consider the options.
"We are disappointed by the decision by the RCHT Board to withdraw from the Strategic Partnership.
"We will now need to consider the implications of this decision with our other Health partners before deciding what course of action is to be taken."
Peninsula Community Health, a not-for-profit company, was also pondering what lay ahead.
A spokesman said: "We have heard the news and we are now looking at the options."
Meanwhile a spokesman for the Cornwall Partnership trust said it was seeking more detail.
Labour county councillor Jude Robinson said the hospital trust's decision could have serious repercussions.
She said: "RCHT is an important partner and their withdrawal will make a big difference."
The controversial arrangement would have seen a wholly-owned company created to run key services. Support for it cost former council leader Alec Robertson his job last October.
