The Region : Hospitals to Affiliate
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Two major San Gabriel Valley hospitals--Huntington Memorial Hospital in Pasadena and Methodist Hospital of Southern California in Arcadia--are preparing a cost-cutting affiliation agreement.
The agreement, which is not a merger and will not affect day-to-day operations, will permit the hospitals to join in making major capital purchases and to consolidate financial services. It could also give the hospitals greater financial clout, increasing their access to capital, officials said.
Officials estimate that the 606-bed Huntington and 351-bed Methodist could, between them, save more than $6 million from combined benefits.
Other hospitals in California, such as Little Company of Mary Hospital in Torrance and San Pedro Community Hospital, have reached similar agreements in order to achieve economies of scale, officials said.
Fred Meyer, president of Methodist Hospital, said the agreement could be completed and approved by the Federal Trade Commission in four months.
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