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City staff recommend CPMC met 2015 development-agreement obligations; community urges sustained outreach
Summary
City staff told the Planning and Health commissions that California Pacific Medical Center met its 2015 development-agreement obligations on charity care, community benefits and most hiring targets; community speakers praised local-hire gains but urged more targeted outreach to Tenderloin residents and fixes at St. Luke's diabetes clinic.
City staff recommended that the Planning and Health commissions find California Pacific Medical Center (CPMC) in compliance with its 2015 obligations under the development agreement covering the Van Ness and St. Luke’s projects.
Staff presentations said CPMC made six required payments in 2015 totaling $14,000,000 and reported more than $14,500,000 in community-benefit spending for the year, above the DA’s $8,000,000 annual community-benefit requirement. The Department of Public Health (DPH) said an independent auditor verified that CPMC served 37,771 unduplicated Medi-Cal or charity-care patients in 2015, exceeding the DA baseline-level target of 30,445 (adjusted to 33,294 under the agreement’s two-year rolling-average provision).
On managed-care enrollment, DPH staff said CPMC accepted 18,522 new Medi-Cal managed-care beneficiaries in 2015, well above the DA’s 5,400-target increase. Staff noted a Tenderloin-focused partnership with Northeast Medical Services (NEMS) and St. Anthony’s intended to enroll 1,500 Tenderloin beneficiaries; as of January 2017 that partnership had 125 enrollees and staff described further outreach funding to St. Anthony’s to boost enrollment.
Workforce presentations from the Office of Economic and Workforce Development and CityBuild reported mixed results. CityBuild said the hiring goal that at least 30% of overall work hours be performed by local residents was effectively met (project-level reporting showed 29% of overall work hours from local residents, a narrow shortfall), and that construction-apprentice first-source targets (a 50% goal for new union apprentices) were at 30% for the period cited. The First Source program for non-construction entry-level jobs exceeded its 40% goal, reaching 69% (121 of 176 hires) in the program year cited. Staff and community speakers emphasized the importance of tracking whether jobs are leading to permanent employment rather than short-term placements.
Catherine Dodd of the Health Service System said an actuarial analysis of certain fee increases was delayed; HSS and CPMC engaged an independent actuary in 2016 to review 2015 costs and determine whether increases exceeded agreed amounts. Staff said directors of Planning and Public Health will issue compliance findings and that a third-party monitor will review those determinations.
CPMC representatives told commissioners the St. Luke’s replacement hospital is ahead of schedule, that the organization invested tens of millions of dollars in San Francisco contractors in 2015, and that a Clipper-card employee transit subsidy launched in January 2017 has had about 10% uptake so far.
Commissioners thanked staff and community participants and asked for continued attention to cultural and linguistic services, data reporting timelines, and whether local-hire gains translate into sustained employment. Staff said some ZIP-code reporting is available and that more granular demographic tracking could be explored.
The commissions opened the item to public comment, heard multiple community organizations and clinic representatives praise employment and contracting gains, and received repeated appeals for more aggressive Tenderloin outreach and for DPH and CPMC to continue work on St. Luke’s diabetes clinic improvements. Staff recommended finding CPMC in compliance for 2015; directors will issue formal determinations to that effect and the third-party monitor will review the findings.
