Save St. Luke's Hospital

St. Luke’s History

History of Merger(s)

CEO  1984-2001 Jack Fries         

• Operations Losses Grow

• 1996        $   664,000

• 1997        $   139,000

• 1998        $1,407,000

• 1999        $1,991,000   

• 2000        $1,958,000

• 2001        $4,176,000

• 1996-2001 losses covered with approved transfers from restricted net assets of St. Luke’s Hospital Foundation.  

• Balance of $9.8 M from the Foundation goes to establish the Thomas Brotherton Fund administered by Episcopal Charities. $776, 908 (4%/yr equal to interest on endowment) has been distributed thus far. Sutter agreement includes an additional declining payout depending upon the timing of closure of acute care services down to $O at 2010.  

•  Sutter's Promises to St. Lukes
•  Affiliation Agreement
•  Attorney General Letter of Approval

•  "CPMC's Promises to the Health Commission"
•  "Health Commission's Resolution on the Merger"
•  St. Johns Vestry Resolution to Save St. Luke's 

CEO  2002-2005  John Williams

• Actual operational losses were re-accessed by new Sutter CFO Jim Strong at significantly higher levels

• 2001-2006 annual losses increase from  $15 M to $32 M   

• Attempts to cut losses by cutting Acute Care Services begin in earnest, resisted by St. Luke doctors, nurses, staff and community.   

• Cardiovascular Center opens

• Sutter covers $162 M operational losses

• Invests $40 M in capital improvements   

• Last under Episcopal Church

• 1995 St. Luke’s Health Center created to hire/salary doctors: ObGyn, Internal Medicine, Pediatrics, Ortho, Psychiatry, Oncology, and Rehabilitation

• Strategic partner search initiated: Considered were: CPMC (they were not interested); Catholic Healthcare West, San Francisco City & County, Humana   

• 1999 St. Luke’s anti-trust suit against CPMC/Sutter Health due to exclusive contract with Brown & Tolland (IPA)  

• 2001 Suit settled out of court by affiliation with Sutter Health Commitment to maintain acute care services and charity care until June 2006

• Improvements of hospital façade, hospital and medical office building lobbies. Successful multidisciplinary and nursing leadership efforts to improve patient satisfaction and service in all areas. Marketing, outreach efforts, retention/ recruitment of doctors.

• 2004 ER plans for $1 M renovation fully approved by OSHPD, on hold by CPMC

• 2005: Psychiatry Ward & Outpatient Clinic closed (Medi-Cal contract cancelled and $8M upgrade of unit required to bring the Ward up to code)

• 2005 NICU staffing cuts requiring more mother and baby transfers in spite of the high risk population served by our award winning Birthing Center. ($2 M savings)

• Skilled Nursing Facility and SubAcute Unit repeatedly threatened with closure.

CEO  2006-present  Martin Brotman

• All admissions to St. Luke’s inpatient areas now approved by CPMC.  

• Opening of Health First clinic using private $ 3 M donation to provide innovative care management for chronic illness: CHF, DM, and Asthma   

• Hospital signage now in English, Spanish, and Chinese. Better maps and directions for patients and visitors.

• $2 M upgrade of Radiology equipment  

• Physician Direct technology improves access to lab data, and ex-ray reports

• Doctors begin to organize (July 2007) to protect acute care by working with elected City officials, Department of Public Health, and community leaders.

• Workman’s Comp Contract partially restored after doctors protest. But Comp Care Clinic doctor laid off.  

• Outpatient PT/OT to move to Davies Campus in November 2007  

• 2007 loss projected to be $27 M, down from $32 M in 2006

• St. Luke’s merged with CPMC. Attorney General Approval based budget to preserve acute care to Dec 2009

• St. Luke’s Medical Staff remains separate from CPMC Staff. Mutual decision. Differences in medical cultures and board certification are issues.

• Just months after merger, November 2006 CPMC Institutional Master Plan proposed closure of acute care by the end of 2007.  Protest made by St. Luke’s Community Advisory Board and Medical Executive Committee and in Feb 2007 it was promised that we will “maintain acute care” until Dec 2009

• Restructuring of St. Luke’s Health Center to bring down deficit. Will provide only primary care in keeping with Community Clinic licensure. Lay-offs of staff. Elimination of hospital support for Orthopedics and Rehab Departments by end of 2007.

• Skilled Nursing Facility and SubAcute now must turn away transfers from all facilities except CPMC as a matter of policy. Census is down on both units.

• Workman’s Comp Contract not renewed. Surgeons must take cases elsewhere.

• Medical-Surgery 10^th Floor: closed “temporarily” for low census.

• ER diversion rate increases from approximately 6% to 12%. Ambulances must go elsewhere. Psyche patients “boarding” in SLH ER has decreased ER capacity. Few psyche beds available in City now, regardless of insurance.

• (SFGH average 22% diversion rate impacts other ER’s, especially SLH).

• October 2007, NICU and Pediatrics Ward to close by end of October. Doctor point out need for Medical Executive Committee to discuss. Closure postponed until November 15. 

• Doctors request a Prop Q Hearing and are told it not required legally due to it being a “consolidation” of services.  

• Doctors protest to Department of Public Health and Board of Supervisors. Chair of Health Commission questions Judy Li. Apologies from CPMC and Prop Q Hearing set for December 4. CPMC announces closure for December 31.

• Nineteen St. Luke’s doctors testify at Board of Supervisors Committee Hearing Oct 25 about the need for the hospital to preserve acute care services.