In an acquisition that reflects a nationwide trend of larger, healthier operators absorbing weaker standalone facilities, Community Hospital of Long Beach (Calif.) has officially joined the MemorialCare Health System, reports Healthcare Finance News and the Long Beach Press-Telegram.
Community had long been an underfunded facility, struggling to break even and had even been closed down briefly a decade ago by its previous owner, Catholic Healthcare West. MemorialCare, by contrast, has annual revenue of nearly $5 billion and has a relatively healthy bottom line. Officials say they intend to expand Commmunity's outpatient and mental care services.
Long Beach Memorial Hospital assumed the lease of Community Hospital from the City of Long Beach on Friday, ending what had been nearly a year of negotiations.
"Our ownership of Community Hospital Long Beach will enhance the ability of these remarkable hospitals to continue providing exceptional care for our communities well into the future," MemorialCare CEO Barry Arbuckle said. MemorialCare operates six non-profit facilities in Long Beach and Orange County.
Few of the 500-plus jobs at Community Hospital will be changed, although a search will continue for the hospital's vacant administrator position. Several of the board positions at the hospital are expected to be integrated into the MemorialCare board. The remainder will serve in an advisory capacity to MemorialCare.
To learn more:
- read the Healthcare Finance News article
- check out the Press-Telegram article
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