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1st appeared 24 May 1999

Kerr Responds to Speculation on Mount Zion's Future

San Francisco newspapers published reports last week that the future of UCSF/Mount Zion Medical Center is uncertain. The articles in the Chronicle and Examiner speculated that Mount Zion might close its emergency room and limit surgeries to those that do not require an overnight stay.

Bill Kerr, Chief Operating Officer of UCSF Stanford Health Care, issued this statement last Thursday in Transition Times in response to these reports:

"You may have read stories in today's newspapers about the future of UCSF/Mount Zion Medical Center. Articles in the San Francisco Chronicle and Examiner discuss the potential for programmatic and structural changes in our services as a result of our financial situation. Despite speculations to the contrary, no decisions have been made about the future of Mount Zion.

As you know, we're in the middle of a financial recovery plan that calls for cost reductions totaling $170 million to help the organization break even in fiscal year 2000. Even after these cuts have been made, we will continue to face great financial challenges as Medicare reductions dictated by the federal Balanced Budget Act of 1997 hit us even harder than they do today, and other revenues fail to keep pace with rising costs. We currently estimate that UCSF Stanford must make an additional $100 million in
financial improvements in fiscal year 2001, either in savings or increased revenues from Medi-Cal or private payors.

Because of our future challenges, we are beginning to review possibilities for structural changes in the way we deliver care. We expect to review alternatives that include, but are not limited to, changes in the configuration of services between UCSF Medical Center and Mount Zion. Over the next several months, we will explore a range of services that might be provided on the two sites in 2001 and beyond. Our goal is to maintain the highest quality care for our patients through the most cost-effective use of
services across the two sites.

One alternative is to review whether moving clinical programs and their hospitalized patients from UCSF Medical Center to Mount Zion, thus allowing Parnassus programs to expand, would help us improve the combined financial performance of the UCSF hospitals, which we continue to regard as a single patient care organization.

We will also review the possibility of operating only those functions at the Mount Zion site that are related to the outpatient physician practices and the outpatient clinical cancer center. Under this alternative, we would continue to operate some outpatient surgery, lab and radiology services, infusion and outpatient renal dialysis.

Another alternative is to operate all outpatient functions described above plus an inpatient short-stay unit for patients requiring less than 72 hours in the hospital. This alternative would include maintaining the ancillary and support services necessary to operate a short-stay unit. California Pacific Medical Center operates a similar unit at its California Street
campus.

As we consider these alternatives and other programmatic changes that would affect the UCSF campus, we will consult with our physicians, managers and staff, the Mount Zion Trustees and other members of the community. In fact, a Medical Staff Committee has been formed to provide input into the decision-making process. The committee is comprised of faculty and community physicians as well as trustees, and is co-chaired by faculty physicians Orlo Clark and Larry Pitts. The committee will review options and give recommendations within a designated timeframe.

If after evaluation, we propose to make significant changes in clinical programs at either Mount Zion or UCSF Medical Center, we will meet with the San Francisco Health Commission to discuss the impacts of those proposed changes on the larger community.

We will keep you informed of developments and further news as we move forward with the process."

Links:

UCSF Stanford Health Care

Faculty Concerned About UCSF Stanford's Impact on Academic Mission

UCSF Stanford to Lay Off 800 Employees

Merger Compounded -- but Did Not Cause - Current Campus Stresses, Says Debas


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