(This story has been updated with a correction.)
The potential merger of NYU Langone Medical Center with Continuum Health Partners moved closer to a deal as the New York hospital operators signed a memorandum of understanding.
Negotiations are expected to continue for another six months, the not-for-profits said in a joint statement.
NYU Langone, one of New York City's largest hospitals with 786 beds, finished fiscal 2011 with operating income of $138.6 million on revenue of $2.84 billion. It includes the Tisch Hospital, the Rusk Institute of Rehabilitation Medicine and the Hospital for Joint Disease. Financial statements were unavailable for Continuum, which includes 810-bed Beth Israel Medical Center, 692-bed St. Luke's-Roosevelt Hospital Center and the 32-bed New York Eye & Ear Infirmary.