SAN FRANCISCO—A compromise is in the works that would allow California Pacific Medical Center to move forward on its $2.5 billion plans to rebuild St. Luke's Hospital and build a new, albeit smaller than planned, hospital on Cathedral Hill, according to reports this week.

Mayor Ed Lee said Tuesday that the San Francisco Board of Supervisors had postponed its latest planned vote on the project until March 12, the  San Francisco Examiner reported late Tuesday. But "this is the last extension," Lee predicted, saying the two sides are very close "to the kind of compromise that needs to get done."

The long-delayed project has been in negotiations since last summer, when business executive and Boudin Bakery co-owner Lou Giraudo was brought in as mediator.

The delays could actually rebound to CPMC's benefit, since the original monster hospital planned for Cathedral Hill may not have been a good match for the tough times that may be coming for hospitals under new Federal health care initiatives.

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David Phillips

David Phillips is a Chicago-based freelance writer and consultant with more than 20 years experience in business and community news. He also has extensive reporting experience in the food manufacturing industry for national trade publications.