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UCSF Health acquires St Francis and St Mary's hospitals to enhance community care

February 20, 2024 | San Francisco City, San Francisco County, California


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UCSF Health acquires St Francis and St Mary's hospitals to enhance community care
In a recent government meeting, officials discussed the significant transition of St. Francis and St. Mary's hospitals to UCSF Health, a move aimed at enhancing healthcare services for the San Francisco community. This acquisition is expected to bolster the hospitals' capabilities, particularly in serving vulnerable populations, including the homeless and those requiring psychiatric care.

The meeting highlighted the unique services provided by St. Francis and St. Mary's, including the largest burn unit in Northern California and a robust gender affirmation surgery program. Both hospitals are recognized for their commitment to patient-centered care, particularly in mental health services, where they lead in psychiatric ambulance transfers within the city.

UCSF Health's president, Suresh Ganasekaran, emphasized the importance of this partnership, noting that it would allow for better resource allocation and increased access to care. The integration aims to maintain existing services while expanding them to meet the growing demands of the community. Ganasekaran assured that no layoffs are planned, and the current medical staff will remain, fostering continuity of care for patients.

Financial challenges have plagued St. Francis and St. Mary's, particularly following the COVID-19 pandemic, which has hindered their ability to reinvest in infrastructure and recruit staff. The transition to UCSF Health is seen as a solution to these issues, with plans for significant investments in facilities and equipment, estimated at $75 to $100 million in the first year alone.

The meeting also addressed the hospitals' payer mix, which predominantly consists of government payers like Medi-Cal and Medicare. This has posed challenges in financial sustainability, but the partnership with UCSF is expected to create a more integrated healthcare system, improving financial viability and patient care.

As the transition progresses, UCSF Health plans to retain the community hospital model, ensuring flexibility in service delivery and affordability for patients. The integration process is anticipated to take about two years, during which both organizations will work closely to minimize disruption and enhance healthcare delivery.

In conclusion, the acquisition of St. Francis and St. Mary's by UCSF Health represents a pivotal moment for healthcare in San Francisco. It promises to strengthen community health services, improve access to care, and address the pressing needs of the city's most vulnerable populations. The collaboration is poised to elevate the standard of healthcare in the region, benefiting both patients and the broader community.

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