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Memorial Health Services Exploring Sale of Anaheim Memorial Medical Center

Posted on: Thursday, 27 July 2006, 18:00 CDT

ANAHEIM, Calif., July 27 /PRNewswire/ -- Memorial Health Services (MHS), a non-profit health care system serving Los Angeles and Orange Counties, announced today that it is exploring options of a partnership or sale of its 224-bed facility in Anaheim, CA.

"To ensure open and accurate information is received by our employees, physicians, patients, volunteers and community members, we wanted to share our interest in pursuing a transaction at this time," says MHS President and CEO Barry Arbuckle, PhD.

When MHS acquired Anaheim Memorial Medical Center in 1995, Anaheim Memorial was facing severe financial challenges. In 1999, MHS acquired nearby Martin Luther Hospital in Anaheim to strengthen Anaheim Memorial's market position for future growth and financial stability by consolidating Martin Luther's services into the Anaheim Memorial campus.

Between 1995 and 2005, MHS invested approximately $85 million in Anaheim Memorial in efforts to achieve a sustainable operation and improve its physical facilities, programs, technological capabilities and services. While its financial picture has improved, Anaheim Memorial continued to sustain losses over the past five years between $2.5 million and $3.3 million annually. The facility also faces increased costs due to state-wide mandated earthquake retrofitting which are likely to exceed $100 million.

In addition to the more than $100 million required for seismic improvements at Anaheim, MHS also needs to spend close to one billion dollars to meet demands for future growth, new equipment and the required seismic retrofitting at its other hospitals in Los Angeles and Orange Counties. These hospitals -- Long Beach Memorial Medical Center, Miller Children's Hospital in Long Beach, Orange Coast Memorial Medical Center in Fountain Valley, and Saddleback Memorial Medical Centers in Laguna Hills and in San Clemente -- are experiencing sizable increases in the numbers of patients served, physician referrals, new programs and services, market share and community growth. These medical centers -- serving more than 3 million people -- are filling critical community need as either the area's major tertiary provider, the region's only designated children's hospital, the sole community hospital or by being located in communities experiencing significant growth.

"MHS will work with Anaheim's community leaders and other interested health care organizations in seeking the best options for this facility," says Lisa Scheer, MHS senior vice president.

Memorial Health Services

CONTACT: Rhoda Weiss of Memorial Health Services, +1-562-335-6332

Source: PRNewswire

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