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City staff recommend CPMC be found in compliance for 2016 amid continued community concerns

San Francisco Joint Planning & Health Commission · September 28, 2017
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Summary

City staff told a joint Planning and Health Commission hearing that California Pacific Medical Center met most 2016 obligations under its development agreement, citing charity care, community benefit and hiring targets; community members pressed officials over planned closures of Swindells Alzheimer's residential care and subacute nursing capacity.

City planning and health staff recommended that the directors of Planning and Public Health find California Pacific Medical Center (CPMC) in compliance with its 2016 development-agreement obligations, while acknowledging ongoing gaps the city and community will continue to monitor.

Elizabeth Pearl of the Planning Department opened the joint hearing on the DA-mandated annual compliance review and said the directors will issue formal findings next month after staff'level determinations and a third'party monitor review. Pearl said the review focuses on calendar year 2016, with workforce hiring reported on a mid-2016 to mid-2017 schedule.

Krishna Patel of the Department of Public Health reviewed core health commitments in Exhibit F and reported that CPMC exceeded several baseline targets. CPMC reported 43,370 unduplicated charity-care or Medi-Cal beneficiary patients in 2016, above the DA baseline figure of 30,445. Patel said community-benefit spending topped $12 million in 2016, exceeding the DA'specified $8 million baseline; both metrics were verified by third'party audit, she said.

City staff described workforce and contracting outcomes tied to the DA. Joshua Arce, the city'appointed CityBuild director, said first-source hiring goals have been met or are on track for many categories: for some construction administration positions 32 of 37 vacancies were filled through the city'referral system; apprenticeship and entry-level numbers remain below some targets but show progress, with CityBuild graduates and program participants testifying later to successful placements. Staff reported roughly 26% of approximately 3.2 million trade hours to date were performed by San Francisco residents and that LBE contracting averaged about 17% across projects, above the DA'target of 14%.

Staff also described the DA'administered innovation fund: CPMC committed $8.6 million across 2013'2017 and made the 2016 payment of $1,725,000. In 2016 grant awards from the innovation fund totaled just under $1 million to five community organizations, supporting clinics, behavioral health, transportation to the sobering center and Tenderloin neighborhood initiatives.

On the topic of post'acute care, staff and DPH noted continuing concerns about skilled nursing facility (SNF) and subacute capacity in the city. CPMC previously proposed closing some SNF/subacute units; staff said CPMC agreed to continue care for the remaining 24 subacute patients while it explores longer'term proposals. The DA requires CPMC to develop subacute proposals but does not itself mandate indefinite operation of specific units, staff emphasized.

As a procedural matter, Pearl said staff'level findings supporting the compliance recommendation will be issued to the directors, reviewed by an independent monitor and transmitted to the Board of Supervisors, with directors'level determinations expected next month.

The hearing included a formal CPMC presentation on construction progress and transitions across campuses; CPMC said Mission Bernal (St. Luke's replacement) is on track for a late'2018 opening and the Van Ness campus for early 2019, and reported an estimated $236 million in economic impact to the city to date.

Next steps: the directors of Planning and Public Health will issue findings based on the record; a third'party monitor will review those findings before transmission to the Board of Supervisors. Commissioners and staff requested follow'up reporting on areas flagged by the public and the commissions, including Tenderloin enrollment strategies, workforce retention data and outcomes tied to cultural and linguistic access.