Both groups are non-profits and it would bring a 
network of community hospitals into the group. Both boards of each side still need to approve and it would also need regulatory approval as well. The downside of this is potential higher prices for consumers and limited options with contract negotiations. Reduced reimbursements and staying in business of course is what is behind such discussions and if such a merger were to take place, then comes buying up MD practices in the immediate area to again get a higher reimbursement fee with services provided at Medical System owned facilities. BD
Two of New York City’s biggest hospital systems reached agreement on Wednesday to pursue a merger that would shake up the way medical care is delivered, especially in Manhattan, where hospitals compete to serve some of the wealthiest neighborhoods in the world.
The proposed merger would bring together NYU Langone
Medical Center, a highly specialized academic medical center, and Continuum Health Partners, a network of several community-oriented hospitals, including Beth Israel and the two St. Luke’s-Roosevelt campuses. It would create one of the largest health care systems in the city, one that would have immense market power under the new federal health care system, and put pressure on independent medical practices, insurance companies and even rival medical schools, which may have to find other places to train their students
The memorandum of understanding is essentially an agreement to share proprietary information, including financial, technology and personnel data, that would be needed to make a final decision to merge, most likely within six months. It is not binding, but it is a signal, as one hospital official said, that the proposal has gone beyond courtship to the engagement stage.
http://www.nytimes.com/2012/06/07/nyregion/nyu-langone-and-continuum-agree-to-pursue-merger.html?pagewanted=1&_r=1
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