The acquisition aims to maintain healthcare equity by providing continued access to services for a diverse patient demographic. Credit: DC Studio/Shutterstock.

UCSF Health has reached a cooperative settlement agreement with California Attorney General Rob Bonta, ensuring the preservation of essential health services following its acquisition of two Dignity Health hospitals in San Francisco, US.

This milestone signifies that the deal, which involves UCSF Health’s acquisition of Saint Francis Memorial Hospital (SFMH) and St Mary’s Medical Center (SMMC), has now gained judicial approval.

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A definitive agreement between UCSF Health and Dignity Health for this acquisition was signed in February this year.

SFMH and SMMC are now set to officially join UCSF Health with effect from 1 August.

The acquisition aims to maintain healthcare equity by providing continued access to services for a diverse patient demographic, including publicly insured patients, elderly people and unhoused.

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The commitment includes maintaining current healthcare services and making significant investments in the hospitals’ infrastructure and technology.

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In February, UCSF Health had pledged to retain the existing workforce and uphold the open medical staff model at both hospitals.  

This will allow local physicians to continue their practices and maintain patient-provider relationships.  

The agreement also includes a commitment to operate the hospitals as licensed general acute care facilities, with plans to maintain or enhance service levels and staffing.

Financially, UCSF Health has committed to providing substantial charity care and community benefit spending at both hospitals, with annual increases to support community healthcare needs.

UCSF plans to invest a total of at least $430m, which includes $80m in electronic medical record systems and other new technologies, as well as $350m to implement infrastructure improvements and maintenance at SFMH and SMMC.

Furthermore, UCSF Health will continue to uphold service contracts with the City and County of San Francisco and ensure that medical staff privileges are not contingent on affiliation with UCSF Health.

The agreement also includes provisions for independent negotiation of payor contracts, with a price growth cap to limit charge increases over the next five years.

UCSF Health president and CEO Suresh Gunasekaran said: “We want to ensure that SFMH and SMMC are places our communities can continue to rely on for excellent care.

“This agreement underscores our commitment to the community and our responsibility to maintain and enhance healthcare services at both hospitals.”