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Pacific Health’s plan to buy Anaheim (CA) Memorial meets with resistance

Los Angeles Times, August 8, 2008

In spring 2007, hospital company Pacific Health Corp. agreed to purchase the nonprofit, 223-bed Anaheim (CA) Memorial Medical Center for $57.1 million. But the sale of a nonprofit hospital to a for-profit company must be approved by the state attorney general, and the purchase has run into opposition. At a public hearing, opponents of Pacific Health's purchase of Memorial contended that Pacific Health should not be expanding at a time when its current hospitals have been hit with so much criticism from regulators over the last year. Pacific Health's problems grew this week, as it was named in a civil lawsuit filed by Los Angeles City Atty. Rocky Delgadillo. He contended that the company was part of a scheme "to defraud the Medi-Cal and Medicare programs."