In a pivotal meeting held on July 4, 2025, San Francisco County officials discussed the future of St. Francis and St. Mary's hospitals, which are facing severe financial challenges. The hospitals, currently losing over $10 million a month, are at risk of reducing services or even closing without acquisition by UCSF Health. The urgency of the situation was palpable as officials outlined the potential consequences for the community if these facilities were to shut down.

UCSF Health has proposed a plan to acquire both hospitals, promising to maintain their operations and enhance the quality of care provided. This acquisition is seen as a crucial opportunity to integrate community-based healthcare with academic clinical excellence. UCSF plans to invest between $75 million and $100 million in immediate infrastructure improvements, addressing critical maintenance needs and ensuring compliance with seismic safety standards by the 2030 deadline.

Importantly, UCSF has committed to retaining the existing workforce at St. Francis and St. Mary's, assuring that no layoffs will occur as a result of the acquisition. This commitment extends to honoring collective bargaining agreements and maintaining the hospitals' licenses as separate general acute care facilities. The transition aims to be seamless, minimizing disruptions for patients and staff alike.

The meeting also highlighted UCSF's dedication to preserving essential services, particularly for vulnerable populations. Both hospitals have historically provided significant charitable care, and UCSF has pledged to continue and potentially expand these services, including specialized programs like the burn center and psychiatric care, which are vital to the community.

As the acquisition moves forward, UCSF has engaged with local community groups and labor partners to ensure transparency and address concerns. The target for closing the transaction is set for the current fiscal year, with ongoing communication planned to keep stakeholders informed.

This acquisition represents a significant shift in San Francisco's healthcare landscape, with the potential to enhance access to critical services for residents while preserving the legacy of St. Francis and St. Mary's hospitals. The commitment to maintaining and improving care reflects a broader vision for a more integrated health system that prioritizes community needs.