Sutter takes on struggling St. Luke's.(Sutter Health System acquires St. Luke's Hospital, San Francisco)(Brief Article)(Statistical Data Included)

Modern Healthcare, November, 2000 by Shinkman, Ron

Faced with an antitrust lawsuit, Sutter Health agreed late last month to affiliate with St. Luke's Hospital in San Francisco and give the struggling facility $55 million in relief.

The affiliation is expected to take effect sometime next year, pending state and federal antitrust approvals.

In less than two years, Sutter has gone from alleged assassin to reluctant savior.

Just 21 months earlier, 225-bed St. Luke's, one of the city's last freestanding hospitals, accused Sacramento, Calif.-based Sutter of trying to put it out of business with unfair business tactics.

"This is a better answer than taking a lot of time fighting in court," said St. Luke's Chief Executive Officer Jack Fries.

St. Luke's will become part of Sutter,...

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