MERGERS: REGENTS BACK PROPOSED UCSF-STANFORD DEAL
A proposed merger between the University of California-SanThis is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.
Francisco (UCSF) Medical Center and Stanford University Medical
Center was approved Friday by the University of California
system's Board of Regents, SAN FRANCISCO EXAMINER reports. The
regents "sealed the deal," voting to turn the assets of UCSF
Medical Center over to a private 17-member board of directors
that would run the merged facilities (Krieger, 7/20). While a
final vote on the deal will not occur until January, the vote
"creates an important framework for the new operation" (Krieger,
SAN FRANCISCO EXAMINER, 7/19).
CRUCIAL HURDLE: "This is the threshold question, whether
the proposed governance structure is acceptable," said John
Davies, chairman of the regents health services committee and a
supporter of the plan. SAN FRANCISCO CHRONICLE notes that "even
opponents of the merger plan concede that the governance question
was the crucial test of how the proposal will fare" in future
considerations by the regents.
LIMITED SCOPE: The vote was limited to how the proposed
board would be comprised; under the approved plan, each
university would appoint six directors so neither would have a
majority (Russell, 7/19). The remaining seats on the board would
be filled by an independent CEO and chief medical officer and
three "outside directors" (EXAMINER, 7/20). In an effort to
increase the hospitals' competitiveness, the new corporation --
which would oversee UCSF Medical Center, Mount Zion Medical
Center, Stanford Hospital and Packard Children's Hospital --
would "not have to comply with state public records and open
meetings laws," CHRONICLE reports. "If we have to operate in a
competitive environment, we have to be more businesslike," said
Regent William Bagley (7/19).
OPPOSITION: The EXAMINER reports that the vote "dismayed
representatives of 5,000 UC workers." The president of the
University Professional and Technical Employees said, "The
regents just gave away a tremendous public asset." Alan Brill,
who represents UCSF interns and residents, added, "Now it is up
to the elected politicians and the community that depends on this
public hospital." The unions have not ruled out litigation to
try to halt the merger (7/19).
FUTURE PLANS: The Board of Regents will vote on the final
merger plan once they receive an "independent financial analysis
of the deal," as well as a court opinion "clarifying that regents
have a right to transfer public property" to a private entity
(CHRONICLE, 7/19).