Proposed Verdugo Hills Hospital merger creates a stir

The Affordable Care Act, Shea said, “is forcing hospitals across the state to look … at services that they can continue to provide, services they may have to discontinue, and in some cases, whether they can even continue to exist as an independent hospital.”

Shea said larger healthcare systems are better able to face the cuts because they have more revenue, and, in many cases, more favorable contracts with health plans and insurers.

Wes Seastrom, chairman of the board of the La Cañada Chamber of Commerce, said those advantages are one reason why he sees the bright side of a deal involving Verdugo Hills.

“I would think it could only help by bringing in more resources, more capital and more services that the bigger organizations can provide,” he said. “As long as these facilities weren't thinking about shutting down the facility, which would of course be disastrous.”

Petrossian's statement said a goal of the merger talks is to “preserve our future relevancy to the residents of the foothill communities we serve.”

Staff reporter Mark Kellam contributed to this article.