Massachusetts General Hospital and Brigham and Women's have completed their three-month-old "affiliation" by forming a parent corporation, Partners Healthcare System Inc., the Boston Globe reported yesterday.

Other Boston teaching hospitals may join the new company, said Dr. H. Richard Nesson, president of Brigham and Women's and chief executive officer of Partners Healthcare.

The hospitals have abandoned the use of the word "merger" to describe their joint venture, the Globe reported, reflecting a decision to retain more of their independence and individual identities.

"The reason people are using the word `affiliation' rather than `merger' is that instead of squishing two hospitals into one, we're creating a new system that will have a new parent but also new affiliates," said David Estridge, a spokesperson for Brigham and Women's.

Teaching hospitals Beth Israel, Children's and New England Deaconess were involved with talks between MGH, Brigham and Medical School Dean Daniel C. Tosteson '44 before the merger was announced in December.

However, spokespersons for the three hospitals were ubable to confirm yesterday if they had been involved in recent discussions about joining Partners Healthcare.

It is unclear at this point how integrated the partners in the new corporation will be in terms of finances, administration, medical staffs and programs, the Globe reported.

The agreement approved by the hospitals' boards is "sort of a prenuptial agreement," said Dr. Samuel O. Their, president and chief operating officer of MGH and president of Partners Healthcare.

"I think people want to see if this can really work," he said.

When asked if the financial assets of the twohospitals will be merged, Their said, "Probably atsome point, but not right away."

Both hospitals which are currently reviewingcost-cutting measures had intended to cut $25 to$30 million from their respective budgets beforethe merger was announced, the Globe reported.

When the affiliation was announced in December,the hospitals said they would be able to cut atotal of $240 million by forming the newcorporation