CFO's quarterly report shows Laguna Honda patient-revenue shortfall; public commenters press for accountability

San Francisco Department of Public Health officials told the Health Commission their second-quarter (fiscal year 2024-25) financial projection shows an expected revenue deficit driven in part by lower-than-expected patient revenue at Laguna Honda Hospital (LHH). Commissioners heard a detailed report from Drew Merrill, the department's chief financial officer, and several public commenters urged audits and accountability related to LHH operations and past decertification costs.

Lede facts and why it matters

DPH's second-quarter projection indicated a material patient-revenue shortfall for Laguna Honda, which the department said stemmed from lower patient census following the facility's earlier decertification and a corresponding lag in revenue recovery even after recertification. The finance report also described offsetting one-time payments and broader system-wide revenue variances: behavioral health services were projecting a sizable surplus tied to payment reform and billing improvements, while Zuckerberg San Francisco General Hospital (ZSFG) expected an on-balance year driven by a mix of revenue and expenditure variances.

Public commenters voiced concern that LHH admissions have increased slowly since admissions resumed in July…