Memorial Health Services Announces Sale of Anaheim Memorial Medical Center

It appears Dr. Reddy's attempts to purchase Anaheim Memorial has not been successful and instead the hospital will become part of the IHHI network of hospitals. IHHI current operates 4 hospitals in the Orange County area and this will be number 5 added to the group. Notice to sale to be filed before December 1st. BD

ANAHEIM, Calif., Oct 31, 2007 /Memorial Health Services (MHS), a not-for-profit health care system with hospitals in Los Angeles and Orange Counties, announced today that it has selected Integrated Healthcare Holdings, Inc. (IHHI) to purchase its 224-bed facility in Anaheim. IHHI, a partially physician-owned publicly traded hospital management company, owns and operates four hospitals in Orange County with a total of 770 beds, 2787 employees and 1725 active physicians. These include Western Medical Center in Santa Ana, Western Medical Center in Anaheim, Coastal Communities Hospital in Santa Ana and Chapman Medical Center in Orange. IHHI has agreed to maintain current levels of hospital services at Anaheim Memorial, as required by the California Attorney General, including the acute care hospital and emergency department. In addition, IHHI has committed to invest capital to improve Anaheim Memorial's infrastructure and technology.