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City and hospitals announce deal reshaping CPMC campuses: St. Luke's expanded, Cathedral Hill reduced; $90M in community benefits cited
Summary
City leaders, supervisors and hospital executives announced a negotiated agreement with CPMC and Sutter Health that increases St. Luke's capacity to about 120 beds, reduces the planned Cathedral Hill hospital to about 274 beds, and includes roughly $90 million in community benefits, expanded affordable-housing contributions and workforce commitments.
City leaders, elected supervisors and hospital executives announced a negotiated agreement on April 10 that reshapes California Pacific Medical Center's (CPMC) development plans while expanding St. Luke's Hospital and committing resources to community benefits.
A mediator introduced the deal as a "win-win" for the city and hospital partners, saying it produced a larger St. Luke's (about 120 beds, compared with an earlier 80-bed plan) and a smaller Cathedral Hill hospital (approximately 274 beds vs. a previously discussed 555-bed design). City officials and hospital executives emphasized that the agreement includes commitments on charity care, local hiring and neighborhood mitigation.
The leadership team cited several financial and programmatic commitments: roughly $90 million in community benefits and investments related to health care, transportation, workforce training, affordable housing and pedestrian safety; an increase in the affordable-housing contribution to about $36.5 million (up from $29 million in an earlier proposal); a $9 million health-innovation fund working with the Department of Public Health; and an increase in workforce-training funds from $2 million to $4 million. Hospital officials also committed to adding care for an estimated 5,400 new Medi-Cal managed-care patients and serving approximately 30,000 charity-care patients per year as a measure of ongoing access.
Elected officials credited a negotiated, transparent process involving the mayor's office, the Board of Supervisors and community coalition representatives. Supervisors Mark Farrell, David Campos and Board President David Chu described extensive meetings and outreach; they said the agreement also tightens local-hiring and entry-level job commitments for San Francisco residents and includes transportation mitigations such as parking reductions and investments of about $14 million for transit and pedestrian improvements.
Hospital executives from CPMC and Sutter thanked city negotiators and community partners for reaching an agreement that, they said, balances systemwide needs, neighborhood concerns and seismic-safety responsibilities.
The announcement was presented as a negotiated settlement rather than a final, fully approved development agreement; City Hall and the board planned further review and approvals in the coming weeks.
