Guide to the UCSF/Stanford Hospital Merger records SC0593
University Archives staff
Department of Special Collections and University Archives
October 2011, February 2023, September 2023
Green Library
557 Escondido Mall
Stanford 94305-6064
specialcollections@stanford.edu
Note
This encoded finding aid is compliant with Stanford EAD Best Practice Guidelines,
Version 1.0.
Language of Material:
Undetermined
Contributing Institution:
Department of Special Collections and University Archives
Title: UCSF/Stanford Hospital Merger records
Identifier/Call Number: SC0593
Physical Description:
200 Linear Feet
(133 boxes)
Date (inclusive): 1997-2003
Physical Location: Special Collections and University
Archives materials are stored offsite and must be paged 36-48 hours in advance. For more
information on paging collections, see the department's website:
http://library.stanford.edu/depts/spc/spc.html.
The Merger records are restricted for 50 years from creation due to personnel and financial
records distributed throughout the collection. They may be made available in 2053.
Human Resources files, General Counsel files, and Risk Management files are restricted for
75 years from the date of creation. They may be made available in 2078
All requests to reproduce, publish, quote from, or otherwise use collection materials must
be submitted in writing to the Head of Special Collections and University Archives, Stanford
University Libraries, Stanford, California 94304-6064. Consent is given on behalf of Special
Collections as the owner of the physical items and is not intended to include or imply
permission from the copyright owner. Such permission must be obtained from the copyright
owner, heir(s) or assigns. See:
http://library.stanford.edu/depts/spc/pubserv/permissions.html.
Restrictions also apply to digital representations of the original materials. Use of
digital files is restricted to research and educational purposes.
[identification of item], UCSF/Stanford Hospital Merger Records (SC0593). Dept. of Special
Collections and University Archives, Stanford University Libraries, Stanford, Calif.
During the 1980s, both Stanford and UCSF engaged in major hospital expansion projects.
Subsequent cutbacks of federal funds resulted in the disappearance of traditional profit
margins despite sizeable cuts in budgets at both institutions. In 1986, California Pacific
Medical Center, Stanford, and UCSF established the California Transplant Donor Network in
San Francisco to eliminate competition for transplant organs. This unusual act of
cooperation was followed by a meeting in 1993 of Stanford Dean David Korn with UCSF Dean
Joseph Martin to discuss other areas of possible cooperation between the two medical
schools.
At the 1995 meeting of the California Business Higher Education Forum, the topic of
discussion was the decline in federal funding for medical research and for Medicare payments
for services. UCSF Chancellor Joseph Martin and Stanford President Gerhard Casper took a
walk during an intermission and agreed that the two schools ought to share more and compete
less. Not long thereafter, Stanford and UCSF announced that discussions were taking place
regarding collaboration with patient care programs, and the formation of other alliances
between the two institutions. Both parties made it clear that the medical schools and
medical faculties would remain independent.
Despite labor concerns, the Board of Regents voted in July, 1996 that the merged health
care system would be a private, non-profit corporation. The Board of Regents approved the
merger uniting UCSF Medical Center; UCSF Mount Zion Hospital, with Stanford Health Services,
which comprises Stanford University Hospital and related clinics; and the Lucile Salter
Packard Children's Hospital. UCSF Stanford Health Care (USHC) began operation in 1997.
There was a significant Increase in clinical activity in the first year of the merger, but
the growth was not sustained. The merger produced a profit of $22 million in the first year.
Then, largely because of administrative costs, UCSF Stanford Health Care sustained an $11
million deficit in the first quarter of the second year, and is expected to lose $60 million
by the end of the second year.
The expectation that the merger would create five multi-disciplinary service lines during
the first five years was not realized. The absence of an adequate information base and lack
of faculty enthusiasm postponed the creation of service lines except in adult cardiology,
pediatric cardiology, and pediatric neurosurgery, and the failure to integrate the
transplantation and cancer programs of the two schools was a notable disappointment.
Supporters of the merger saw two distinguished faculties creating a single clinical entity,
perhaps becoming the nation's premier academic health center, but this goal was not
achieved. After a year and a half, the two faculties failed to come together, and in the
first months of 1999 leaders of both institutions became aware of a large financial deficit.
In spring of the following year, the merger was officially dissolved.
Subjects and Indexing Terms
Hospitals
Hospitals -- Design and construction.
Hospitals, University.
Hospitals -- California -- Palo Alto.