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UCSF reports investments and operational steps six months after acquiring St. Mary’s and St. Francis

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Summary

UCSF Health told the San Francisco Health Commission it is investing in facilities, IT and staffing at the two community hospitals it acquired from Dignity Health, and said it remains committed to Medi‑Cal and behavioral health services while noting higher-than-expected deferred maintenance and early operating losses.

UCSF Health on Monday provided the Health Commission its first six-month update after acquiring St. Mary’s and St. Francis hospitals and associated clinics from Dignity Health, reporting immediate capital investments, an electronic medical record migration and commitments to maintain access for Medi-Cal beneficiaries and behavioral health patients.

In a public briefing, UCSF and Department of Public Health staff said the acquisition closed on Aug. 1, 2024, following a cooperative settlement with the California Attorney General. UCSF’s update described significant deferred maintenance discovered after the closing and an operating loss of more than $50 million across the two community hospitals since the acquisition. UCSF said it has already invested more than $20 million in core facilities and equipment and more than $40 million in IT infrastructure, including a planned transition…

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