Anaheim Memorial Hospital to merge with Memorial Health Services.

ANAHEIM, Calif.--(BUSINESS WIRE)--Nov. 14, 1995--In a move that will enhance their respective abilities to meet the evolving health care needs of the Orange and Los Angeles county communities, Anaheim Memorial Hospital and Memorial Health Services (MHS) Tuesday announced their intention to merge.

The Anaheim Memorial Hospital board of directors late Monday approved the signing of a non-binding letter of intent to merge with Memorial Health Services, a not-for-profit corporation with subsidiaries including 752-bed Long Beach Memorial Medical Center and 220-bed Saddleback Memorial Medical Center in Laguna Hills.

Under the terms of the agreement, Anaheim Memorial Hospital, a 224-bed not-for-profit organization, will maintain a separate board of directors and control of its daily operations. Memorial Health Services will enlarge its geographic network, significantly increasing its patient base in Orange and Los Angeles counties.

"This is a good fit," says Chris Van Gorder, president and CEO of Anaheim Memorial. "For us to continue to be a vital community asset, we need to be able to compete in a managed care environment. Quality and cost-efficiency will be more important than ever. Our merger with Memorial Health Services provides us the ability to chart our own course with the support of a health care network that is equally committed to quality, efficiency and community health."

"As non-for-profit organizations, we have an obligation to ensure our communities receive the best possible health care," said Thomas Collins, CEO of MHS. "This partnership strengthens our position as providers of premium health care services in an extremely competitive market."

The Anaheim Memorial board's signing comes after six months of discussion with six potential partners. With the regional growth of managed care and intense competition, both AMH and MHS had been seeking partners to enhance access to services for patients in their communities.

According to Van Gorder and Collins, the merger ensures the ability of Anaheim Memorial, Long Beach Memorial and Saddleback Memorial Medical Centers to compete in the local managed care arena by providing consumers an increased choice of providers across a greater geographic area.

The completion of the transaction is subject to due diligence and the signing of a definitive agreement.

CONTACT: Anaheim Memorial Hospital

Reggi Gruschka, 714/999-6062

or

Memorial Health Services

Lori Brandt, 310/933-2853