St. Mary’s, St. Francis hospitals officially joining UCSF

St. Mary’s Medical Center and St. Francis Memorial Hospital are officially going to join the UCSF fold next month.

Nearly a year after UCSF Health announced its intent to acquire the hospitals from Dignity Health , the health-care giant announced Tuesday that a cooperative settlement agreement had received judicial approval that day in San Francisco Superior Court.

The deal, crafted in collaboration with California Attorney General Rob Bonta, aims to preserve some of the critical health services that the hospitals provide and maintain equal access to care. Doctors at St. Mary’s had voiced concern about those issues last summer .

The hospitals will officially join the UCSF system Aug. 1.

“This agreement underscores our commitment to the community and our responsibility to maintain and enhance healthcare services at both hospitals,” said Suresh Gunasekaran, the president and CEO of UCSF Health. “We are grateful that Attorney General Bonta shares our dedication to safeguarding the health of San Franciscans and appreciate his partnership in reaching this cooperative agreement.”

St. Mary’s was founded in 1857 by the Sisters of Mercy and was The City’s first Catholic hospital. Along with St. Francis, the hospitals cater to patients who are elderly or homeless and rely on Medi-Cal or Medicare benefits. Staffers said they were initially concerned that the sale would affect the care those patients receive.

One particular worry was about the independent status the doctors at the hospital have, which they said they feared would change after the UCSF sale. Staffers wondered if the merger would make them employees, limiting how many patients they could see and who their patients were.

But in February, UCSF Health committed to keeping on the employees of both hospitals and keeping the medical staffs’ relationships with patients intact and their ability to practice at either location.

The finalized agreement solidifies the local health giant’s commitments — made when the sale of the hospitals was first announced — to reflect “the health system’s efforts to expand access to high-quality health care for all San Franciscans, regardless of their ability to pay,” the organization said in a statement.

Both hospitals will continue to participate in Medi-Cal and Medicare and both will continue to be licensed general acute care hospitals. The facilities will either maintain or expand staffing and service levels, according to UCSF Health.

In response, staff at St. Mary’s said they have been put at ease.

“We couldn’t be more thrilled that St. Mary’s will continue to be a community hospital, with all the usual services, under the same historic name,” said Dr. Remo Morelli, the president of the medical staff at St. Mary’s and a cardiologist at the hospital for 38 years. “We greatly appreciate UCSF’s commitment to honor the community hospital model with independent doctors working to provide patient-centered care for everyone, including those with limited means.”

The sale also will include a bump in funding from UCSF Health to expand the services and resources at both hospitals, such as an annual fund for charity care of $6.5 million or more at St. Francis and $3.5 million or more to St. Mary’s, which will increase 2.4% each year.

Another $430 million will be invested into the hospitals for infrastructure and maintenance needs, officials said.