UCSF Health to make $100 million acquisition of two hospitals
UCSF Health this week said it has signed a $100 million agreement to take over control of Saint Francis Memorial Hospital and St. Mary's Medical Center, two struggling community hospitals in San Francisco.
Why it matters: The acquisition aims to enable UCSF — widely considered to be the top hospital in San Francisco — to expand its offerings and address overcrowding in its current facilities.
Context: St. Mary's and Saint Francis, currently owned by Dignity Health, have a combined occupancy rate of just 25% and each hospital loses millions of dollars annually, the San Francisco Chronicle reports.
- Over at UCSF, the hospital's beds "are completely full almost every evening," which causes delays in operating rooms and in the emergency room, UCSF Health President and CEO Suresh Gunasekaran told the Chronicle.
Of note: As part of the acquisition, UCSF Health officials say Saint Francis and St. Mary's hospitals will no longer be affiliated with the Catholic Church.
- UCSF Health Affiliates Network President Shelby Decosta told the Chronicle that change is a "critical and part of UCSF's values" given the Church's stance on abortion and contraception.
What to watch: UCSF Health aims to close the deal this spring. Once it's finalized, Gunasekaran said the hospital plans to invest upwards of $100 million to address maintenance projects, facility improvements and more.
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