Hospital Heads Unite to Help Decrease Costs

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Compiled by Sue Avery

The chairmen of the boards of Huntington Memorial Hospital in Pasadena and Methodist Hospital in Arcadia have signed an affiliation agreement creating a new parent corporation, Southern California Healthcare Systems.

Paul Ravesies, chairman of Methodist Hospital board of directors, will be chairman and James Gamble, chairman of Huntington Hospital board of directors, will be vice chairman.

Officials said the purpose of the affiliation is to decrease expenses through the consolidation of corporate services and the restructuring of subsidiaries, to save in future capital expenditures, and to increase access to capital through stronger credit ratings.


The new corporation will represent two acute hospitals, two skilled-nursing facilities, laboratories, pharmacies, home care services and support services for medical groups.

Each hospital will maintain its current name, license and site.

The chief executive officer of the new parent corporation will be Allen Mathies Jr. of the 606-bed Huntington, and the chief operating officer will be Frederick Meyer of the 347-bed Methodist.

The agreement has been approved by the Federal Trade Commission and the Department of Justice.

Final approval is being sought from the state attorney general, the Internal Revenue Service and the Probate Court.