
San Francisco Chronicle: Leaked financial documents threaten CPMC deal
John Cote, SF Chronicle
Mayor Ed Lee’s deal with California Pacific Medical Center on a $2.5 billion overhaul of their medical facilities in the city, including building two new hospitals, took a new hit Monday after an anonymous whistleblower released internal financial documents that cast doubt on key pillars of the deal.
Lee has heralded the agreement, which includes building a 555-bed hospital at the intersection of Van Ness Avenue and Geary Boulevard, as a jobs creator that will ensure the city’s medical future.
The documents, though, show that the Sutter Health-affiliated medical group contemplated just days before the deal was announced in March the possibility of eliminating 379-full time positions at California Pacific Medical Center by 2018 to achieve $63 million in savings, an amount that grows to $70 million by 2022.
The documents, which include long-term financial projections for Sutter Health’s West Bay Region, also indicate that California Pacific Medical Center’s charity care commitment, which has clauses tying it to financial performance, could be substantially less than the called for in the deal.

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