UCSF Health, in partnership with California Attorney General Rob Bonta, has finalized a cooperative settlement agreement focused on preserving critical health services and promoting equity in San Francisco.

This agreement addresses UCSF Health’s acquisition of Dignity Health’s San Francisco hospitals, including Saint Francis Memorial Hospital (SFMH) and St. Mary’s Medical Center (SMMC).

These hospitals serve a diverse population, including elderly, unhoused, and publicly insured patients who rely on Medi-Cal, Medicare, or charity care.

The judicially approved agreement formalizes commitments UCSF Health made during the acquisition approval process and in their definitive agreement with Dignity Health.

It underscores UCSF Health’s commitment to expanding access to high-quality healthcare for all San Franciscans, regardless of financial status.

“They are committed to ensuring that Saint Francis and St. Mary’s remain trusted healthcare providers for our communities.

This agreement underscores our responsibility to the community and our commitment to maintaining and enhancing healthcare services at both hospitals.”

In February, UCSF Health reaffirmed its commitment to preserving existing services at Saint Francis and St. Mary’s, ensuring convenient local access for primary and specialty care.

Immediate capital investments and infrastructure improvements are planned. UCSF Health also pledged to retain all hospital employees and maintain open medical staffs, ensuring local physicians can continue practicing and preserving long-term patient-provider relationships.

Key provisions of the cooperative agreement include:

• Continuing SFMH and SMMC as licensed general acute care hospitals, maintaining or expanding current service levels and staffing.
• Continued participation in Medi-Cal and Medicare programs.
• Annual charity care commitments of at least $6.5 million at SFMH and $3.5 million at SMMC, increasing annually by 2.4% at both hospitals.
• Annual community benefit spending of at least $1.6 million at SFMH and $10.7 million at SMMC, also increasing yearly by 2.4% at both locations.
• Investment totaling at least $430 million, including $80 million for electronic medical records and related technologies, and $350 million for deferred maintenance and infrastructure improvements at both hospitals.
• Maintaining existing service contracts with the City and County of San Francisco, unless terminated for cause.
• Ensuring independence in negotiation of payor contracts for SFMH and SMMC, with a price growth cap over five years to manage charge increases.

This agreement reflects UCSF Health’s ongoing commitment to the San Francisco community and its efforts to ensure sustainable, accessible healthcare services for all residents.






Source: ucsf.edu

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