San Francisco Chronicle: UCSF joins with John Muir Health
Andrew S Ross
UCSF is expanding its Bay Area footprint.
Having absorbed Children’s Hospital Oakland into UCSF Benioff Children’s Hospital Oakland, the medical center is moving into Contra Costa County in a “collaboration” with John Muir Health.
A letter of intent was signed today to “develop a company that will serve as the cornerstone of a Bay Area health care network intended to provide patients with high quality care and an exceptional experience at an affordable price,” said the two institutions in a joint statement.
Under the proposed agreement, to be finalized by the end of the year, a new entity will be created “that is equally owned and operated by both organizations … and serve as a funding vehicle for future joint initiatives,” it said.
First up would be an “accountable care organization” — a patient care and payment system that is supposed to lower costs as it improves the quality of care.
“We looked at a number of affiliation options that would allow us to grow without compromising our mission, vision and independence. We found the right fit with UCSF,” said John Muir Health CEO Cal Knight.
In an e-mail to his staff, Knight added, “I want to be clear that our proposed affiliation with UCSF is not a sale, merger or acquisition. It is about growth and securing our future.
“The additional scale of our operations through the new company and Bay Area ACO will allow us to spread our cost base over a larger area making us more efficient.”