Calvary will not challenge terms surrounding the territory's acquisition of what is now called North Canberra Hospital, but has left the door open to appeal a court's decision to allow the takeover in the first place.
The ACT Supreme Court last month dismissed Calvary's legal challenge of legislation passed to enable the compulsory acquisition of the Bruce hospital.
It also dismissed Calvary's application for an injunction to prevent the government exercising powers under the takeover legislation.
Calvary's barrister, David Williams SC, told the ACT Supreme Court on Friday the religious healthcare provider would not challenge regulations relating to the terms of the acquisition that include compensation.
"We consent to the matter being dismissed," Mr Williams told Chief Justice Lucy McCallum.
The court heard Calvary and the government had engaged in dialogue and made appropriate amendments to appease both parties.
Mr Williams said the "significant changes" took on board Calvary's criticisms of regulations.
The judge noted this did not mean a discontinuance of the entire proceedings, meaning Calvary can still appeal the court's initial decision to deem the takeover bill as valid.
With both parties consenting, Chief Justice McCallum said details of the acquisition were no longer "appropriate to be determined by the court".
The issue of legal costs remains, with lawyers to file written submissions on the matter and a full bench of three judges to consider them in the coming weeks.
