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California hospital to be acquired by Southwest Healthcare

Arcata, Calif.-based Mad River Community Hospital, a 78-bed facility, is set to be acquired by management company Southwest Healthcare Services, the hospital said May 22.

Southwest Healthcare currently manages the 231-bed Pacifica of the Valley Hospital in Los Angeles and a behavioral health urgent care center in Sylmar, Calif.

The community hospital has been approached several times in recent decades about possible partnerships but had wanted to maintain its independence, Douglas Shaw, Mad River's chair and CEO, said in a news release. Mr. Shaw's father helped build the hospital, he said.

But as many small rural hospitals like Mad River have had to deal with overwhelming financial challenges, the time had come to accept such a proposed partnership, Mr. Shaw added.

Southwest Healthcare has pledged to maintain existing services as well as invest in facility upgrades, according to the news release.

The parties expect to reach a final agreement by the fall.

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