The Government had wanted to buy the hospital, claiming it had to because it could not continue to invest in an asset it did not own. But the it withdrew from the deal after receiving accounting advice that it could already count the facility as an asset, reports the ABC.
It was the second time the Calvary deal had fallen through.
The Opposition has successfully moved a motion referring options for Calvary to the Legislative Assembly's health committee for scrutiny.
Opposition health spokesman Jeremy Hanson told the Assembly he wants to ensure mistakes of the past are not repeated.
"We've come to a point where we simply can't trust the Government to get it right," he said.
"They have proved from the process over the last two years that they have failed to do so.
"This is a Government that nearly cost us $77 million. If it weren't for essentially the mishandling of the negotiations we would have found ourselves $77 million poorer."
IN OTHER NEWS, the Little Company of Mary Health Care has announced that John Watkins has been appointed the new Chair of the Little Company of Mary Health Care Limited.
Mr Watkins will take up his position as Chair at the November 2010 AGM when the term of the current Chair expires. He was a NSW Government Minister for eight years, holding a number of senior portfolios.
Since leaving Parliament, he has been the CEO of Alzheimer's Australia NSW, and intends to continue his relationship with that organisation on a reduced basis.
"Mr Watkins will bring to the LCM Board leadership skills and an understanding of the Mission and Ministry necessary to support LCM Health Care's move into the future with confidence," Sr Jennifer Barrow LCM, Province Leader of the LCM Sisters, said.