CALIFORNIA: WILSON VETOES UCSF-STANFORD OVERSIGHT BILL

      Gov. Pete Wilson (R) vetoed legislation last night that
 would have given the state Legislature the authority to "oversee
 the private, nonprofit corporation created by the planned merger"
 of University of California at San Francisco and Stanford
 University hospitals, San Francisco Chronicle reports.  The bill,
 which was sponsored by Assemblywoman Carole Migden (D), would
 have subjected the assets currently controlled by UCSF (an
 estimated $500 million) to "financial reviews by" legislators. 
 In his veto message, Wilson charged that Migden's proposal "goes
 beyond what is prudent in protecting the public interest."  He
 added, "Legislative oversight of a private corporation will harm
 the corporation's ability to compete because sensitive
 management, financial and contract information will be made
 public during the legislative process."  
      NEXT STEPS
      Wilson suggested yesterday that any bill providing state
 oversight of the merged hospitals must "balance the need for
 public accountability and the requirement that any new entity
 formed with public assets be able to compete in the health care
 marketplace."  Chronicle notes that three separate bills related
 to the merger remain pending in the Legislature, including one
 that would subject the merged hospitals to "the state's open
 meetings and public records laws" (see AHL 9/2).  Under the UCSF-
 Stanford hospitals merger, the newly created San Francisco
 Stanford Health Care will become the "largest medical center on
 the West Coast" (Gunnison, 9/3).  Click here for background on
 the merger.