St. Luke's-Roosevelt Hospital Center and Beth Israel Medical Center in New York are in merger negotiations.
The combination of New York's third-largest and sixth-largest hospitals would create the largest facility in the city, with more than 2,500 beds.
The proposed marriage envisions the creation of a separate parent corporation, sources said. The new organization, with potentially more than 13,000 employees, would be managed by Beth Israel.
The discussions are "an effort to provide greater access" to quality medical services and to boost St. Luke's-Roosevelt's ability to compete in the rapidly changing healthcare marketplace, the hospital said in a statement.
The negotiations are not the first for the loss-plagued facility. Over the past two years, St. Luke's-Roosevelt has been linked with several potential partners, most recently Columbia-Presbyterian Medical Center. Columbia-Presbyterian has been seeking a merger to provide a cushion against anticipated Medicare and Medicaid cutbacks.
St. Luke's-Roosevelt officials said talks with Columbia-Presbyterian are still under way, and partnerships with either institution are being reviewed.
St. Luke's-Roosevelt lost $12.5 million in 1994 and $12 million in 1993. In recent months, it has eliminated 450 positions and now has 6,700 employees.
Crain News Service