California Pacific Medical Center in San Francisco has struck a deal with city officials to scale back the size of its new planned hospital and to expand the capacity of its rebuilt St. Luke's Hospital, according to a San Francisco Chronicle report.
Under the agreement, the medical center will reduce the size of its new planned hospital from 555 beds to 274 beds. It will also expand the capacity of St. Luke's from 80 beds to 120.
City supervisors had raised concerns, such as congestion issues and provisions for local jobs, regarding the original deal brokered by the mayor. The new agreement ends months of negotiations.
The new agreement is designed to ease congestion concerns around the new hospital and maintain the commercial viability of St. Luke's. California Pacific Medical Center had pledged to keep St. Luke's open for 20 years as part of its original $2.5 billion planned overhaul of its facilities, but the original agreement had a trigger that would allow it to close St. Luke's if the medical center's systemwide operating margin fell below 1 percent for two years in a row, according to the report.
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Under the agreement, the medical center will reduce the size of its new planned hospital from 555 beds to 274 beds. It will also expand the capacity of St. Luke's from 80 beds to 120.
City supervisors had raised concerns, such as congestion issues and provisions for local jobs, regarding the original deal brokered by the mayor. The new agreement ends months of negotiations.
The new agreement is designed to ease congestion concerns around the new hospital and maintain the commercial viability of St. Luke's. California Pacific Medical Center had pledged to keep St. Luke's open for 20 years as part of its original $2.5 billion planned overhaul of its facilities, but the original agreement had a trigger that would allow it to close St. Luke's if the medical center's systemwide operating margin fell below 1 percent for two years in a row, according to the report.
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