$2.5B San Francisco-California Pacific Medical Center Deal in Question After Documents Leaked

San Francisco-based California Pacific Medical Center, affiliated with Sacramento, Calif.-based Sutter Health, is refusing to change part of its $2.5 billion development agreement with the city after leaked documents raised concerns among city officials, according to a San Francisco Examiner report.

Last week, internal CPMC financial documents were leaked showing scenarios in which the hospital could pull out of commitments to pay $86 million annually in charity care and to keep a hospital serving mostly lower-income patients open for 20 years, according to a San Francisco Chronicle report. A CPMC spokesman said in the report the documents were "drafts that were discarded and not used." However, members of the San Francisco Board of Supervisors expressed concerns and a need to revisit the agreement with CPMC.

Specifically, San Francisco Mayor Ed Lee wants CPMC to guarantee it will rebuild St. Luke's Hospital and run the facility for at least 20 years. Currently, the deal includes an escape clause under which CPMC's obligation to St. Luke's would be nullified if CPMC's operating margin is less than 1 percent for two consecutive years. While the leaked documents showed financial projections that would trigger this clause and lead to the closure of St. Luke's, CPMC officials say current projections do not trigger the clause and that they remain committed to rebuilding and running the hospital, according to the San Francisco Examiner report.

CPMC's deal with San Francisco, which includes the construction of a new 555-bed hospital, was approved by the city's planning commission in April. The board of supervisors is scheduled to vote on the deal July 17, but the recent concerns among city officials may cause a delay, according to the report.

More Articles on CPMC and San Francisco:

City Planning Commission Approves California Pacific Medical Center's $2.5B Project
California Pacific Medical Center-San Francisco Deal Raises Cost Concerns

California Pacific Medical Center, San Francisco Mayor Strike Agreement on Expansion

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