The Royal Cornwall Hospitals Trust has withdrawn from a partnership with Cornwall Council.
Known as “joint venture”, the trust was to have shared serves in Cornwall with the council and other healthcare partners.
However, in a letter to staff chief executive Lezli Boswell confirmed: “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.”
A spokesperson for Cornwall Council said: "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. "