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Supervisors press DPH, Chinese Hospital and partners to fast‑track subacute beds as patients continue to go out of county

Public Safety and Neighborhood Services Committee · September 9, 2021
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Summary

At a Sept. 9 hearing, supervisors pressed the Department of Public Health and Chinese Hospital for a concrete timeline to reestablish in‑county subacute care capacity. DPH said Chinese Hospital has a 23‑bed unit ready for licensing but Medicare (CMS) certification and financing arrangements could take months; the committee asked DPH to obtain transfer data and return with an update.

San Francisco supervisors on Sept. 9 pressed city health officials and Chinese Hospital leadership for an accelerated plan to bring subacute skilled‑nursing beds back into the county after years of capacity loss and recent transfers of patients to out‑of‑county facilities.

"We don't have the permanent place yet," said Chair Gordon Marr, summarizing longstanding concern that San Francisco lacks sufficient subacute beds after the closure of several in‑county units. Sponsor Supervisor Safaie recalled families forced to accept placements far from the city and urged urgent action to avoid further harm.

Kelly Hiramoto, special project manager at the Department of Public Health, told the committee DPH has reengaged consultant Milliman and the controller's office to update pipelines for subacute units. Hiramoto said Chinese Hospital has a newly built 23‑bed floor and is beginning licensing steps with the state; she described work to help with licensing and Medicare certification and to identify funding and operating partnerships. "We will be working with the Chinese hospital to determine their licensing support needs," Hiramoto said.

Chinese Hospital CEO Dr. Jian Zhang told the committee the kitchen/cafeteria issue that previously blocked certification "is not an issue anymore" and said staff, beds and an electronic health record are in place. He stressed financial viability concerns: Medicare (CMS) certification is needed for sustainable reimbursement and "we cannot open a new unit to lose money," he said.

DPH said CMS certification could take nine months to a year and possibly longer if state approvals lag, though the department will attempt to fast‑track the process as it did for a recent psychiatric subacute unit. Hiramoto told supervisors the city will also reengage with community‑based providers such as San Francisco Healthcare and Rehab (which has potential to convert up to 38 beds in phases) and explore interim options such as Seton Hospital for increased short‑term capacity.

Public commenters — including clinicians, ombudsmen and family members — described transfers to distant facilities as traumatic and risky. Dr. Teresa Palmer, a local geriatrician, said transfers out of county had produced higher mortality and reduced family support; several advocates blamed CPMC for prioritizing revenue over in‑county care.

Supervisors asked DPH to seek data from both public and private hospitals on the number and destinations of transfers for subacute care and to return with a progress update. The committee voted unanimously to continue the hearing to the call of the chair so supervisors can review licensing progress, partnership agreements and data on out‑of‑county transfers.