UCSF will acquire St. Mary’s Medical Center and Saint Francis Memorial Hospital from CommonSpirit Health in a $100 million deal, approved by San Francisco Superior Court on July 2. The merger takes effect August 1, with both facilities renamed under the UCSF Health brand and stripped of Catholic affiliation. All 1,800 employees retain their jobs, and 700 independent physicians may continue practicing. UCSF pledged $430 million in infrastructure investment over 10 years. The sale follows CommonSpirit Health reporting $1.3 billion in operating losses in fiscal year 2023.
In-Depth:
Under the agreement, approved by San Francisco Superior Court on July 2, St. Mary’s Medical Center and Saint Francis Memorial Hospital, two community-centered hospitals owned by CommonSpirit Health, will officially merge with UCSF on Aug. 1, UCSF declared in a July 2 news release. As reported by the San Francisco Chronicle, the acquisition will cost UCSF $100 million. (The Chronicle and SFGATE are both owned by Hearst but have separate newsrooms.)
Following the merger’s close, the hospitals will be renamed UCSF Health Saint Francis Hospital and UCSF Health St. Mary’s Hospital, according to the UCSF Health website. The facilities also will no longer have religious affiliation with the Catholic Church.
The UC Board of Regents and UCSF Health officials will operate and maintain both facilities as acute hospitals with the same services and staff for 10 years, according to a statement from Bonta’s office. UCSF will invest $430 million in infrastructure, maintenance and technology investments at both hospitals, the release declared.
Neither of the two hospitals will have any layoffs and none of their existing services will be eliminated, UCSF declared on its website. A written agreement with UCSF states that all 1,800 employees from both hospitals will keep their jobs and 700 indepfinishent physicians can continue their practice, the Chronicle reported.
Both hospitals also have large numbers of older and unhoapplyd patients and some that rely on Medi-Cal, Medicare or charity care, Bonta declared in the statement. The recently approved settlement will ensure that the UCSF hospital will be able to provide the same services.
The UCSF sale also comes amid financial troubles for CommonSpirit Health. According to a 2023 fiscal year report, the company had $1.3 billion in operating losses.
