Catholic Church is still an obstacle in the way of ACT Government's proposal of buying the Calvary hospital.

The hospital was to be bought from the Little Company of Mary Health Care for $77 million, but this deal had been killed in the month of February.

Now, the new plan which is being offered says that Government may buy the hospital building, but it should allow the Catholic healthcare provider to keep on running the facility.

Catholic Archbishop of Canberra Mark Coleridge did not like this plan and he has written to Chief Minister Jon Stanhope mentioning that he is still not convinced that the sale is a good idea, as has been revealed by ACT Health Minister Katy Gallagher.

Katy said, "The tone of his letter was he was happy for negotiations to continue at this early stage but that he remained unconvinced the Government needed to purchase the hospital to invest in it".

MLA Amanda Bresnan shares that she still hopes that the deal can proceed. Katy shared that though the Government was running out of options, yet it would be forced to consider other alternatives, for instance, building a third public hospital.