San Francisco, CA Market Overview

The Supreme Court’s ruling to uphold the major tenants of the Affordable Care Act was good news to many healthcare stakeholders in California, including San Francisco, which has offered city residents near-universal healthcare coverage for a number of years. On the heels of this ruling, however, are state budget cuts that could damage hospitals’ bottom lines. This comes at a time when even large, integrated systems such as Kaiser Permanente and Sutter Health have suffered financial losses and when many health systems are attempting to become stronger and more integrated via new provider network strategies as well as new affiliations and acquisitions. On the payer and employer fronts, there is speculation that CalPERS could consider new contracting partners as it continues its quest for value-based purchasing.