SAN FRANCISCO (KCBS)— San Francisco city leaders have struck a deal to build two new hospitals, including a scaled-back plan for the controversial California Pacific Medical Center (CPMC). However, there are reports that another major facility will actually grow in size.

When Sutter Health proposed a 550-bed hospital for the old Cathedral Hill Hotel site at Geary and Van Ness, the neighborhood and supervisors balked at the plan, put together by Mayor Ed Lee. There were concerns about traffic and the deal fell apart.

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After months of intense negotiation, city officials announced on Tuesday the new CPMC facility will be downsized to 274 beds. St. Luke’s Hospital in the Mission will expand from 80 to 120 beds, securing its role in that community.

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“It’s an incredible time for the city. These are major, major health-care institutions that we have. This will lead to hundreds of jobs for the city, permanent long-term jobs,” said Mayor Lee.

The deal was brokered by City Supervisors David Chiu, David Campos and Mark Farrell. In addition, it has the support of unions, nurses’ organizations and  a community coalition that opposed the original CPMC plan for Van Ness Avenue.

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