FHP Properties to Bring $87 Million

Memorial Health Services of Long Beach has agreed to pay $87 million to acquire FHP International Corp.’s Fountain Valley hospital, neighboring corporate headquarters and surrounding 11-acre campus, the companies said Wednesday.

Memorial Health, which also owns hospitals in Long Beach, Laguna Hills and Anaheim, will hire FHP’s hospital employees, the companies said. FHP’s corporate employees will remain in the headquarters office until the company moves to new headquarters in Santa Ana in late June.

Memorial also will acquire medical buildings on FHP’s property as part of the deal, which was announced previously.

The transaction reflects FHP’s plan to change from a health maintenance organization that serves its members through its own hospitals and medical groups to one that contracts for those services with outside providers.