SANTA ROSA, Calif.-Health Plan of the Redwoods, a not-for-profit HMO based in Santa Rosa, Calif., and an independent practice association that serves the HMO will jointly purchase 79-bed Warrack Medical Center in Santa Rosa. Ownership of the hospital will be split evenly between IPA of the Redwoods and the HMO, which serve Northern California counties. Terms of the deal will be disclosed when it is finalized Aug. 31. Warrack, a full-service, acute-care facility with a medical staff of 95 physicians, has had one major shareholder-businesswoman Betty Glaser-since it opened its doors in 1960. "(Glaser) knew the hospital had to work with physician groups and managed-care organizations to survive," said Dale Iverson, Warrack's chief executive officer. Hospital executives put together a plan to sell the hospital and fielded offers from a new Omaha, Neb.-based hospital chain, called Capital America, and from Columbia/HCA Healthcare Corp. in addition to the HMO. The winning suitor was trying to integrate its delivery system. Health Plan of the Redwoods, with 86,000 enrollees, contracts with three IPAs representing 1,100 physicians. IPA of the Redwoods' physicians had wanted to buy 98-bed Community Hospital in Santa Rosa, but county supervisors decided not to sell. So the IPA and HMO teamed up to purchase Warrack.