In addition to the 32-hospital deal involving Lutheran Health System and Samaritan Health System (See story, p. 22), several other hospital sales or mergers were completed on Aug. 30 or Sept. 1.
* San Francisco-based Catholic Healthcare West completed the sale of two of its hospitals to Memorial Health Services of Long Beach, Calif., for undisclosed terms. Memorial, which already owned four hospitals in California, acquired CHW's 205-bed Martin Luther Hospital in Anaheim, Calif., and 139-bed La Palma (Calif.) Memorial Hospital, formerly La Palma Intercommunity Hospital. Memorial immediately merged Martin Luther's operations with its 192-bed Anaheim Memorial Medical Center, renaming it Anaheim Memorial Medical Center-West Campus. The Martin Luther facility will be converted to outpatient use by early 2000, said Thomas Collins, chief executive officer of Memorial Health Services.
* CHW also signed a definitive agreement to buy 93-bed South Valley Hospital in Gilroy, Calif., from Columbia/HCA Healthcare Corp. Terms were not disclosed. The Roman Catholic system plans to merge South Valley with 55-bed Saint Louise Hospital in nearby Morgan Hill, Calif., transferring operations from Saint Louise to the larger South Valley facility by early December. The deal is expected to close by Sept. 30. The combination of the two-hospital sale to Memorial and the one-hospital acquisition from Columbia will leave CHW with 47 hospitals.
* Foundation Health Systems, the Woodland Hill, Calif.-based managed-care company, completed the sale of its only two hospitals-107-bed Memorial Hospital of Gardena (Calif.) and 127-bed East Los Angeles Doctors Hospital-to Houston-based HealthPlus Corp. Terms were not disclosed. The sale marked the exit of Foundation, a 6-million enrollee managed-care plan, from the hospital business, which it entered through a 1992 acquisition. HealthPlus is a privately held company that owns three hospitals in Missouri and Texas.
* Two founding officers of Nashville-based New American Healthcare who left the company in May have purchased one of the company's poorer-performing hospitals. Neil McLean, former senior vice president of acquisitions and development at New American, and Craig Watson, former vice president, have purchased 209-bed Delta Medical Center in Memphis, Tenn. Terms of the deal were not disclosed. Watson and McLean purchased the New American subsidiary that owns the hospital in an arms' length transaction. New American had decided to sell the hospital because it did not fit the company's rural portfolio and it was losing money, McLean said. He said he and Watson resigned specifically to pursue this opportunity and have no plans to purchase other hospitals. The two executives plan to manage the hospital on-site, with Watson becoming chief executive officer and McLean's title to be determined.