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UCSF to acquire 2 Dignity Health hospitals in $100M agreement

San Francisco-based UCSF Health has signed a $100 million definitive agreement with San Francisco-based Dignity Health to take on two of its hospitals: Saint Francis Memorial Hospital and St. Mary's Medical Center, both of which are in the city.

UCSF Health began acquisition talks with Dignity Health, part of Chicago-based CommonSpirit Health, for the two hospitals in July. 

Under the acquisition, which UCSF Health hopes to close by this spring, the hospitals will be renamed UCSF Health Saint Francis Hospital and UCSF Health St. Mary's Hospital, respectively, according to a Feb. 5 UCSF news release.

The hospitals will retain their open medical staffing, which is different from other UCSF Health hospitals' faculty-based structure.

Expansion of cardiology and surgery services is also part of UCSF's expansion plans, including growth of hospital medicine programs and emergency departments, the release said. 

Shelby Decosta, president of the UCSF Health Affiliates Network, will oversee Saint Francis and St. Mary's.

Along with tapping into unused bed space at the hospitals for patients, UCSF Health plans to increase staffing and resources at Saint Francis and St. Mary's, allowing for patients with more complex health conditions to be seen at UCSF Health's other sites, such as the health system's Parnassus Heights, Calif.-based hospital opening in 2030. 

A multi-year integration process will also kick off once the transaction is complete.

News of the acquisition comes after Orange, Calif.-based UCI Health also recently reached a definitive agreement to acquire Tenet Healthcare's Pacific Coast Network, which includes four hospitals in Southern California and their associated outpatient locations.

Part of UC San Francisco, UCSF Health comprises San Francisco-based UCSF Helen Diller Medical Center at Parnassus Heights, San Francisco-based UCSF Medical Center at Mount Zion, UCSF Medical Center at Mission Bay (Calif.), UCSF Benioff (Calif.) Children's hospitals and clinics, Emeryville, Calif.-based UCSF Benioff Children's Physicians, San Francisco-based UCSF Faculty Practice and San Francisco-based Langley Porter Psychiatric hospitals and clinics. 

Dignity Health is a nonprofit health system that features more than 60,000 employees, including over 10,000 physicians across 41 hospitals in California, Arizona and Nevada, according to its website

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