An agreement has been reached to build a major new California Pacific Medical Center hospital on Cathedral Hill, Mayor Ed Lee and hospital officials announced Wednesday.
The deal, struck after several months of negotiations between The City and the medical center, will create a $1.9 billion, 555-bed hospital at Van Ness Avenue and Geary Street.
Also, St. Luke’s Hospital, an aging facility that serves poorer patients in the Mission, will receive a seismic rebuild costing about $300 million.
The mayor said the agreement — which must be approved by planning commissioners and supervisors — “will move San Francisco’s healthcare system into the 21st century and have lasting impacts on the health of generations of San Franciscans.”
CPMC CEO Dr. Waren Browner said the deal represented an “unprecedented commitment” by a healthcare provider.
Some community and labor groups have expressed concerns about the Cathedral Hill development, particularly whether it will address local job creation, adequate healthcare access for the poor, and affordable housing and traffic impacts, said Steve Woo of the coalition San Franciscans for Healthcare Housing Jobs and Justice.
“We have a variety of concerns with the project in general,” Woo said. “We hope that the mayor’s deal will address all of them.”
City and hospital officials said the agreement would double the number of “seismically safe” hospital beds in The City, create 1,500 construction jobs and provide $1.1 billion in community benefits.
The deal requires the medical center to significantly invest in local affordable housing and provide $86 million per year for 10 years toward community clinics and other healthcare services for the poor and underserved. It also calls for transit, pedestrian safety and streetscape improvements.
Correction: This article was updated March 29, 2012. A previous version of this article contained an incorrect rendering of the proposed CPMC Cathedral Hill project.