Cedars-Sinai, Huntington Hospital, Finalize Affiliation

The affiliation was first announced in March 2020, but raised anticompetitive concerns by the California Attorney General's Office.

Pasadena-based Huntington Hospital and Cedars-Sinai Health System announced that they have cleared all regulatory hurdles and finalized their previously announced affiliation.

Under the affiliation, the 619-bed Huntington Hospital will maintain local governance—with its own employees, board of directors and medical staff. In addition, Huntington's fundraising and volunteer program will remain under local control.

Cedars-Sinai will provide additional resources, expertise, and management. The Los Angeles-based health system has also committed to improving IT, expanding ambulatory services, and bolstering physician recruiting and development.

The affiliation was first announced in March 2020, but raised anticompetitive concerns by the California Attorney General's Office. Huntington and Cedars-Sinai filed a lawsuit against the AG in March 2021, claiming that state regulators slapped burdensome and unprecedented conditions on their proposed affiliation.

At issue was the so-called "competitive impact" conditions attached to the affiliation by the AG's office that state regulators said would ensure that the consolidation does not raise prices for consumers in the affected service areas.

Cedars-Sinai officials told HealthLeaders that the suit had been resolved, but they did not elaborate.

Lori J. Morgan, MD, CEO of Huntington, said the hospital chose to move forward with Cedars-Sinai because it "has demonstrated a commitment to build on the strengths of its affiliates to advance clinical quality, provide outstanding patient care and engage with the communities it serves."

"Huntington will be both a strong contributor to this world-renowned, nonprofit system and enjoy the benefits of joining a larger, regional organization to preserve our legacy of compassionate, community-based care well into the future," Morgan said.