The two California nonprofit health systems have signed a letter of intent and have begun due diligence.
Keck Medicine of USC and Methodist Hospital of Southern California are "exploring an affiliation" that "would bring Methodist Hospital into the Keck Medicine clinical enterprise," the two Southern California-based health systems announced this week.
The two nonprofit health systems signed a letter of intent and are entering a due diligence period for the merger, which both systems say would improve care access in the San Gabriel Valley region.
Financial terms were not disclosed.
Three-hospital Keck Medicine of USC is one of two university-based medical systems in Los Angeles and includes flagship Keck Hospital of USC, USC Norris Cancer Hospital, USC Verdugo Hills Hospital and more than 80 outpatient clinics in Los Angeles, Orange, Kern, Tulare and Ventura counties.
Arcadia-based Methodist is a 348-bed community hospital that during a normal year records about 16,000 patient admissions and 50,000 emergency department visits.
"Methodist Hospital has a longstanding history of providing excellent care in the San Gabriel Valley and has the potential to be a strong partner as we work together to expand services and create easier access to primary and complex care for the people we serve," Keck Interim CEO Rodney Hanners said in a media release.
"This affiliation would not only complement our current satellite in Arcadia, but also provide opportunities to elevate our entire network that we are excited to explore further," he said.
Executives at both systems will speak with Keck Medicine clinical faculty, physician leaders at Methodist Hospital, and other stakeholders across the region in the coming months to finalize the terms of merger.
No date was given for when the affiliation will be finalized.
"This affiliation represents an opportunity to ensure that our hospital remains well-positioned to meet the health care needs of generations to come," said Methodist President and CEO Dan Ausman.
"It would enable our physicians to care for their patients as they always have, with expanded access to the USC network of care teams, clinical services and outpatient facilities throughout the San Gabriel Valley," Ausman said.
“This affiliation represents an opportunity to ensure that our hospital remains well-positioned to meet the health care needs of generations to come.”
Dan Ausman, president / CEO, Methodist Hospital of Southern California.
John Commins is a content specialist and online news editor for HealthLeaders, a Simplify Compliance brand.
Photo credit: Los Angeles, California/United States - 01/31/2020: A view of the front plaza area and sign for the Keck School of Medicine of USC.David Tonelson / Shutterstock
KEY TAKEAWAYS
Executives at both systems will speak with Keck Medicine clinical faculty, physician leaders at Methodist Hospital, and other stakeholders across the region in the coming months to finalize the terms of merger.
Keck Medicine of USC is one of two university-based medical systems in Los Angeles and includes flagship Keck Hospital of USC, USC Norris Cancer Hospital, USC Verdugo Hills Hospital and more than 80 outpatient clinics in five counties.
Arcadia-based Methodist is a 348-bed community hospital that records about 16,000 patient admissions and 50,000 emergency department visits.
Financial terms were not disclosed. No date was given for when the affiliation will be finalized.