CALIFORNIA: WILSON VETOES UCSF-STANFORD OVERSIGHT BILL
Gov. Pete Wilson (R) vetoed legislation last night thatThis is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.
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."
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