The recent clamor has already produced changes in the merged hospitals, which serve 25,000 veterans in the Hudson Valley.

Given these concerns, the Federal Trade Commission - which has had little success blocking mergers - is now going back to look at some merged hospitals.

Like other merged hospitals, we have achieved savings through integration of central management, staff reductions and standardization in areas like materials purchasing.

The merged hospitals would continue to operate separate hospitals.

The merged hospitals had been providing healthcare for nearly 130 years.

He also ruled that there was "no credible evidence" that the merged hospitals would "not attempt to reduce costs."

Ms. Bischoff, a fan of the merger, was soon a senior executive of the entity that oversaw the merged hospitals.

By March 2001, trustees of the merged hospitals had agreed to unravel much of the merger and allow both campuses to operate semi-independently.

They also said they expected the merged hospital to generate more revenue because it would be more attractive to managed-care companies and patients.