No. 06-01

Determining That the Affiliation Between Sutter Health and St. Luke’s Hospital Will Have a Detrimental Impact On the Health Care Service of the Community

WHEREAS, St. Luke’s Hospital and Sutter Health will have an affiliation that would further the charitable missions of each of the organizations, where St. Luke’s future as a full-service acute care hospital is maintained, and the South of Market community retains a valuable health care asset; and,

WHEREAS, St. Luke’s Hospital in San Francisco, California Pacific Medical Center (CPMC) in San Francisco, and the non-profit Sutter Health network of hospitals and physicians have reached an out-of-court agreement stemming from a legal complaint filed by St. Luke’s in January 1999; and,

WHEREAS, as a Sutter Health affiliate, St. Luke’s, as indicated in an affiliation agreement, will remain non-profit, will retain its separate license, and will maintain its local Board of Directors with local governance authority but not independent of the Sutter Health Corporation but including responsibility for decisions regarding clinical services, charity care and mission, as well as relationships with organized labor; and,

WHEREAS, Sutter Health potentially will have a large market share of acute care beds in the City and County of San Francisco; and,

WHEREAS, Sutter Health and the St. Luke’s Board of Directors have committed to the historic mission of St. Luke’s to the South of Market and Mission neighborhoods; and,

WHEREAS, the St. Luke’s Board of Directors has informed the Health Commission that without this affiliation with Sutter Health, St. Luke’s could not continue to operate; and,

WHEREAS, Sutter Health is willing to support St. Luke’s provision of charity care at historical levels; and,

WHEREAS, the Health Commission held a public hearing on December 12, 2000; and, in accordance with the Health Care Planning Ordinance (Proposition Q), held Prop Q hearings on January 16, 2001 and February 6, 2001; now, therefore, be it

RESOLVED, that the Health Commission determines the affiliation will have a detrimental impact on the health service of the community; and, be it.

FURTHER RESOLVED, that the Health Commission urges that the affiliation continue to maintain at least its historical level of charity care.

I hereby certify that the Health Commission at its meeting of February 6, 2001 adopted the foregoing resolution.

Sandy Ouye Mori, Executive Secretary to the Health Commission