City News

Daly City Passes Resolution Supporting Current Land Use and Zoning for Continued Hospital Use


In light of the recent filing for bankruptcy by the company that owns Seton Medical Center, the City Council of Daly City passed a resolution supporting current land use and zoning for the hospital on Monday, September 24, 2018.

Seton Medical Center was founded in 1893 by the Daughters of Charity as Mary’s Help Hospital and it has provided medical care to residents of northern San Mateo County and San Francisco for over a century. The 357-bed facility serves a highly diverse population of 1.5 million in the region with a comprehensive range of medical, surgical and emergency services. Care for the sick and persons living in poverty is central to the mission and values of Seton Medical Center, as it serves 28,000 residents annually in its emergency room with 85% of them having Medicaid or Medi-Cal as insurance.

“Our action last night is a clear sign to the community that the council has no desire to change the current hospital zoning. The land is zoned for hospital use and will remain so. Seton Medical Center is the only hospital serving vulnerable populations in Daly City and surrounding communities and it has provided vital medical care to those with the highest need. Our City Council members all agree that it is just too important to the community to shut its doors in Daly City. ” says Mayor Juslyn Manalo.

In 2015, Verity Health System, a regional health care system spanning the State of California from the Bay Area to Los Angeles, assumed control of the Daughters of Charity Health System (DCHS), which included Seton Medical Center in Daly City. The California Attorney General approved the acquisition of DCHS by the hedge fund Blue Mountain in December 2015, which later rebranded the system as Verity Health. At that time, the Attorney General imposed certain conditions on the transaction including a mandate that Seton Medical Center continue to operate as a full-service acute care hospital with emergency department services for a minimum of 10 years after the change in control. However, Verity Health entered bankruptcy on Friday, August 31, 2018, with an auction of its assets pending.

To ensure continuation of medical services at Seton, the City Council of Daly City passed a resolution acknowledging that zoning and land use designations in the City of Daly City’s Sullivan Corridor Specific Plan only designate its use for a hospital. The City Council also resolves that Seton Medical Center should be maintained as a full-service acute care hospital under new ownership and that a potential buyer should be notified that the City Council is committed to maintaining the Hospital Zoning and has no current plans to change the current zoning.

The 32-acre Seton Medical Center has maintained its use as a hospital since 1965 and the City Council urges that it continue to provide the full range of its medical services.