UCSF Medical Center and UCSF Benioff Children’s Hospital San Francisco (BCHSF) are tertiary and quaternary care providers serving the greater San Francisco Bay Area, Northern California, Central Valley and beyond. We care for patients who suffer from the most acute medical conditions, which often require costly treatments. UCSF is among the largest Medicaid providers in Northern California and is San Francisco’s largest provider of hospital care for Medicaid patients. More than 26 percent of our total patient services are provided to Medicaid patients.

A disproportionate share of Medicaid beneficiaries residing in our service area seek treatment at UCSF Medical Center and UCSF Benioff Children’s Hospital San Francisco, which are among the few medical centers that provide tertiary and quaternary care to California Medicaid enrollees suffering from highly acute medical conditions. UCSF’s support for Medicaid patients has been steadily increasing due to California’s Medicaid expansion under the Affordable Care Act (ACA). In fiscal year 2018, UCSF Medical Center and BCHSF provided $263 million in uncompensated care to Medicaid patients.

Neither UCSF Medical Center nor UCSF Benioff Children’s Hospital San Francisco receives operating funds from either the state of California or the University of California system. As self-supporting institutions, UCSF Medical Center and BCHSF rely heavily on other funding sources, including savings generated from participation in the 340B Drug Pricing Program, to offset the losses incurred in caring for Medicaid patients and to fund programs that care for vulnerable and underserved populations.

In addition, the savings generated from participating in the 340B Drug Pricing Program help UCSF absorb pharmaceutical inflation rates that exceed our reimbursement rate increases.