July 1996 Bulletin

UCSF, Stanford may merge

The University of California Board of Regents is studying a proposal to merge the clinical operations of UC San Francisco and Stanford University. The proposal was outlined in May at a meeting of the Committee on Health Services.

Academic medical centers are threatened by competition from HMOs and by reductions in federal and state support for medical education programs. About 80 percent of the commercially-insured population in San Francisco is enrolled in HMOs.

On May 17, the Regents approved an agreement between U.C. San Francisco Medical Group and California Pacific Medical Group, a for-profit independent practice association in San Francisco, to form a managed care medical group. The partnership would give UCSF access to California Pacific's managed care patients. UCSF is seeking access to at least 100,000 managed care enrollees.

Regents also approved a proposal by UC San Diego to create a partnership with one or more health care provider organizations to help improve its competitive position in the San Diego market.

Budget projections for 1995-96 showed a deficit at the medical center of $20.3 million in May, $16 million greater than projected three months earlier


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