AnnualReport

Dear friends,

By any measure, this past year has been extraordinary for UCSF Medical Center. From creating one of the largest and most signifi cant children’s health entities in the nation through our affi liation with Children’s Hospital & Research Center Oakland, to seeing our next-generation hospitals at Mission Bay come to life, 2014 has been a pivotal year for the organization and for the patients and families who entrust us with their care.

These two milestones, however, are only part of a larger picture of transformational accomplishments achieved by our clinical staff and the entire UCSF team. This past year has seen signifi cant, continuing improvements in quality,safety and the patient experience. We have watched our census soar in obstetrics, oncology and other services. Teams throughout the medical center have executed lean projects that have maximized value for our patients, while minimizing waste. This principle was also the impetus behind creating UCSF Health, an organizational structure that brings together all the elements of the clinical enterprise whose primary purpose is to provide patient care.

Indeed, it would not have been possible to manage these challenges nor pursue these opportunities without the commitment and dedication of the thousands who come to work here each day. I also want to acknowledge the growing community of partners who have made supporting our work the focus of their philanthropy – we could not do it without you.

This was a year in which we set our course for the future and embarked on that course in earnest. In the next few years, the work won’t diminish, I can assure you, but the future for this great organization will only get brighter. The best is yet to come.

Sincerely,

Mark R. LaretChief Executive Offi cerUCSF HealthUCSF Medical CenterUCSF Benioff Children’s Hospitals

Mark R. LaretMark R. Laret

Setting a course for the future

The Regents of theUniversity of California (includes ex offi ciomembers)Toni AtkinsRichard C. BlumJerry BrownWilliam De La Peña, MDSheldon EngelhornRussell S. GouldEddie IslandGeorge KiefferSherry L. LansingKaren Leong ClancyMonica LozanoHadi MakarechianJanet NapolitanoGavin NewsomNorman J. PattizBonnie ReissFrederick RuizSadia SaifuddinRichard ShermanTom TorlaksonBruce D. VarnerPaul D. WachterCharlene Zettel

PresidentJanet Napolitano

UCSF ChancellorSam Hawgood, MBBS

Executive ViceChancellor and ProvostJeffrey Bluestone, PhD

Senior Vice ChancellorJohn PlottsFinance and Administration

Dean, School of MedicineBruce U. Wintroub, MD (interim)

Executive Vice Dean, School of MedicineKeith R. Yamamoto, PhD

Vice Deans, Schoolof MedicineSue Carlisle, MD, PhDSan Francisco General Hospital

Neal Cohen, MD, MPH, MSAf� liations and International Relations

Elena Fuentes-Affl ick, MDAcademic Affairs

Michael HinderyAdministration, Financeand Clinical Programs

Catherine Lucey, MDMedical Education

Bruce U. Wintroub, MDClinical Affairs

Dean, School of NursingDavid Vlahov, PhD, RN

Dean, School of PharmacyB. Joseph Guglielmo, PharmD

Dean, School of DentistryJohn D. B. Featherstone, MSc, PhD

Dean, Graduate DivisionElizabeth Watkins, PhD

Clinical ChairsAbul K. Abbas, MBBSPathology

Ronald L. Arenson, MDRadiology

Nancy L. Ascher, MD, PhDSurgery

Mitchel S. Berger, MDNeurological Surgery

Peter R. Carroll, MD, MPHUrology

Donna Ferriero, MDPediatrics

Linda Giudice, MD, PhDObstetrics, Gynecology and Reproductive Sciences

Michael Gropper, MD(interim)Anesthesia andPerioperative Care

Kevin Grumbach, MDFamily and Community Medicine

Stephen L. Hauser, MDNeurology

Talmadge E. King Jr., MDMedicine

Clifford Lowell, MD, PhDLaboratory Medicine

Stephen D. McLeod, MDOphthalmology

Andrew Murr, MDOtolaryngology

Mack Roach III, MDRadiation Oncology

Peter Sokolove, MDEmergency Medicine

Matthew State, MD, PhDPsychiatry

Kimberly Topp, PhDPhysical Therapy andRehabilitation Sciences

Thomas Parker Vail, MDOrthopaedic Surgery

Bruce U. Wintroub, MDDermatology

UCSF Medical CenterChief Offi cersMark R. LaretChief Executive Of� cer

Ken JonesChief Operating Of� cer

Joshua Adler, MDChief Medical Of� cer

Sheila Antrum, RN, MSHAChief Nursing and Patient Care Services Of� cer

Joseph BengfortExecutive Director andChief Information Of� cer

David OdatoChief Administrative andHuman Resources Of� cer

Barrie StricklandChief Financial Of� cer

UCSF Medical CenterExecutive DirectorsKathleen BalestreriPatient Services

James BennanFinance

Reece FawleyHealth Plan Strategy and Transplantation

Jennifer HermannHuman Resources and Occupational Health

Pamela HudsonClinical Information Systems

Brigid IdePatient Safety and Quality

Cindy LimaMission Bay Hospitals Project and Health SystemOrganizational Program Management

Tim MahaneyFacilities and Support Services

David MorganAmbulatory Care

Kimberly Scurr, RNChildren’s Hospital

Michael SkehanClinical Services

UCSF Benioff Children’s Hospital Oakland LeadershipBertram H. Lubin, MDPresident and Chief Executive Of� cer

Richard DeCarlo, RN, BSN, MBAExecutive Vice President and Chief of Hospital Operations

David Durand, MDSenior Vice President and Chief Medical Of� cer

Kathleen Cain, MBASenior Vice President and Chief Financial Of� cer

*On June 30, 2014

Leadership*

In 2014, the budding relationship

with Children’s Oakland blossomed,

with its renaming as UCSF Benioff

Children’s Hospital Oakland;

collaborations with other hospitals

and health systems took shape;

and the Mission Bay hospitals

complex steadily came to life.

The last year has been transforma-

tional for UCSF Medical Center and

UCSF Benioff Children’s Hospitals.

2014Year in Review

One of the Nation’s Top Hospitals

UCSF Medical Center ranked among the nation’s premier hospitals for the 12th consecutive year and is the best in Northern California, according to the 2013-2014 America’s Best Hospitals survey conducted by U.S. News & WorldReport. UCSF Medical Center was named the seventh best hospital in the country. Just 18 hospitals made the publica-tion’s national Honor Roll, a distinction that signals both rare breadth and depth of medical excellence.

Perfect Score for Health Care Equality

UCSF Medical Center became the only institution in the United States to have received a perfect score on the national LGBT Healthcare Equality Index (HEI) for six consecutive years. The HEI annually invites health care facilities nationwide to complete a survey describing how they provide equitable, inclusive care for lesbian, gay, bisexual and transgender (LGBT) patients and their families.

New Mission Bay Family House to ExpandServices for Patient Families

For three decades, Family House has offered a supportive home base for families whose children are being treated for cancer and other life-threatening illnesses at UCSF Benioff Children’s Hospital San Francisco. Now, as the children’s hospital moves to a new home at Mission Bay, Family House also is gearing up to relocate to a new facility down the street from the new hospital – one that will more than double its occupancy and offer a long list of special amenities. The 92,000-square-foot Nancy and Stephen Grand Family House at Mission Bay will include 80 bedrooms, each with an en suite bathroom, for a total occupancy of 250 people each night.

UCSF Benioff Children’s Hospital, Children’s Hospital Oakland Complete Affi liation

UCSF Benioff Children’s Hospital and Children’s Hospital & Research Center Oakland affi liated, building on the hospitals’ mutual commitment to provide outstanding care to children in local communities, and advance medical discovery andtreatment for the world. The affi liation, which became effective Jan. 1, 2014, brings together two leading Bay Area children’s hospitals, strengthening their abilities to meet marketplaceexpectations, including those arising from the Affordable Care Act. The affi liation has the potential to provide better health care value to consumers through higher-quality care, lower costs and more coordinated access to services at hospital locations on both sides of the bay, as well as medical facilities throughout Northern California.

Sam Hawgood Named UCSF Chancellor

Renowned pediatrician and medical school Dean SamHawgood, MBBS, was appointed chancellor of UCSF, taking the helm on April 1, 2014. Hawgood became dean of the UCSF School of Medicine and vice chancellor for medical affairs in September 2009, after serving as interim dean since December 2007. As dean, he was a core member of the Chancellor’s Executive Council, playing a central role in the University’s leadership and guidance during a time of signifi cant growth and profound change.

Cancer Hospital Name Recognizes Long-TimeSupporters

The naming of UCSF Bakar Cancer Hospital was made in recognition of the long-standing commitment of San Francisco philanthropists Gerson Bakar and Barbara Bass Bakar to cancer programs at UC San Francisco. The Bakars’ support builds upon the generosity of Helen Diller, whose foundation was instrumental in making the Helen Diller Family Cancer Research Building at Mission Bay a reality.

UCSF Receives $50M Gift for Women’s Health

The new women’s hospital at Mission Bay was named in honor of Betty Irene Moore, a patient safety pioneer and advocate. The hospital received a $50 million gift from Bay Area residents Gordon and Betty Moore to help fund the region’s fi rst women’s hospital and to advance the innovative initiatives of the UCSF National Center of Excellence in Women’s Health. The gift was a private donation from the Moores, whose leadership and philanthropy have profoundly infl uenced health care practices in the United States.

UCSF Benioff Children’s Hospitals Receive$100M Gift from Lynne and Marc Benioff

A second gift of $100 million was received from Lynne and Marc Benioff to UCSF Benioff Children’s Hospitals. The gift will be used to strengthen the existing talent and programs in basic and clinical research and patient care at the San Francisco and Oakland hospitals. It will also serve to attract new exper-tise to accelerate the development of innovative solutions for children’s health on both sides of the San Francisco Bay, as well as nationally and globally.

UCSF Benioff Children’s Hospitals Launch Global Initiative on Preterm Birth with $100M from Lynne and Marc Benioff, Bill & Melinda Gates Foundation

UCSF Benioff Children’s Hospitals announced a $100 million global initiative to address the epidemic of premature birth, the leading cause of death for newborns and the second-leading cause of death for children under 5. The 10-year, global initiative will be jointly funded by Lynne and Marc Benioff in partnership with the Bill & Melinda Gates Foundation.

CARING FOR THE COMMUNITYUCSF Medical Center is self-supporting and uses its margins to meet important needs in our communities, including training physicians and other health professionals, supporting medical research, providing care to the medically and fi nancially needy, and building and operating facilities to serve the diverse needs of our patients.

UCSF Medical Center contributed $170 million to the research and education mission of UC San Francisco, including $61 million in program support grants to academic programs, $69 million in purchased services from the faculty, and $40 million in salaries for student residents who help care for patients.

For more information on the myriad ways UCSF MedicalCenter brings signifi cant resources to an ambitious public mission, go to www.ucsfhealth.org/communitybenefi t.

Fiscal years ending June 30, 2014, and June 30, 2013 (dollars in thousands).

2014 2013

BALANCE SHEET

Assets

Total current assets 894,050 845,274Capital assets, net 1,913,427 1,630,307Cash restricted for hospital construction 6,744 8,351Other assets 266,546 386,863Total assets 3,080,767 2,870,795

Liabilities and Net Assets

Total current liabilities 283,370 288,900

Long-term debt and capitalleases, net of current portion 837,536 843,951Pension liability 670,964 978,542Other liabilities 506,228 360,760Total liabilities 2,298,098 2,472,153

Net assets 782,669 398,642Total liabilities and net assets 3,080,767 2,870,795

INCOME STATEMENT

Operating Revenue

Net patient service revenue 2,308,685 2,098,463Other operating revenue 81,588 65,846Total operating revenue 2,390,273 2,164,309

Operating Expenses

Salaries and employee benefi ts 1,094,283 1,113,873Supplies and purchased services 909,932 829,108Depreciation and amortization 98,523 100,801Other 128,131 113,958Total operating expenses 2,230,869 2,157,740

Income from operations 159,404 6,569Nonoperating revenues, net 22,400 12,146Net income 181,804 18,715

ADDITIONAL INFORMATION

Uncompensated/ undercompensated care 175,329 205,943Reinvestment in facilities and equipment 382,466 437,800

1000

960

930

900

879

840

810

780

30.0

29.5

29.0

28.5

28.0

27.5

27.0

OUTPATIENT ACTIVITYPatient visits (in thousands)

INPATIENT ACTIVITYPatient discharges (in thousands)

Financials

2011 2012 2013 2014

2011 2012 2013 2014

New accounting pronouncements to account for pension ob-ligations and debt issuance costs were adopted in fi scal year 2014 and applied retroactively to fi scal year 2013. Financials do not include UCSF Benioff Children’s Hospital Oakland.

UCSF Medical Center505 Parnassus Ave. San Francisco, CA 94143www.ucsfhealth.org

UCSF Benioff Children’s Hospital San Francisco1975 Fourth St.San Francisco, CA 94158www.ucsfbenioffchildrens.org

To support UCSF Health:Office of Development220 Montgomery St., Fifth floor San Francisco, CA 94104(415) 476-5640www.ucsfhealth.org/donate

© 2015 The Regents of the University of California Printed on New Leaf Reincarnation 80lb Matte Coated 100% post-consumer waste paper2.15-MKT-14-01805

The 2014 annual report of UCSF Medical Center and UCSF Benioff Children’s Hospital San Francisco was produced by the Marketing Department.

Marketing DirectorErika Smith

Marketing Manager Andrea Eastman

Managing Editor Brad T. Snyder

Art Director Ellen Camp Heywood