California county agrees to buy hospital in $150M deal

After months of discussions, a California county has reached an agreement to buy a hospital from HCA Healthcare, the nation’s largest for-profit health system.

Santa Clara County in California has reached an agreement to buy Regional Medical Center from HCA Healthcare in a $150 million deal. Officials announced the agreement this week.

Santa Clara County is buying Regional Medical Center from HCA Healthcare in a $150 million transaction. The county and HCA announced this week that they have reached a definitive agreement.

Officials say they still must obtain regulatory approvals, but they expect to close the transaction on April 1. To make that deadline, county officials said they will need “timely” licensure approvals from the state of California.

The county said that it was moving to buy the 258-bed hospital to preserve important healthcare services for the community.

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County officials said they wanted to buy the hospital after HCA reduced some stroke and cardiac services and lowered the level of trauma at the medical center.

James R. Williams, the Santa Clara County executive, said in a statement that the county is looking forward to taking ownership of the hospital and integrating it into the Santa Clara Valley Healthcare system.

“Restoring RMC’s previous levels of care, including lifesaving trauma services, and incorporating it into the County’s excellent healthcare system will improve care for those living in East San José and our broader community,” Williams said in a statement.

County officials previously said they were looking at either expanding the three county-owned hospitals, or buying Regional Medical Center. The county said it made more sense to buy the facility.

“This purchase allows us to restore critical care where it is needed most, serve those in need, maintain quality jobs for the dedicated RMC staff, and avoid significant costs and impacts the County would otherwise incur by having to expand facilities and staffing at our other hospitals,” Williams said in a statement.

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County officials say they aim to restore Level II trauma care at Regional Medical Center, as well as the stroke and cardiac care services that had been scaled back. When the medical center downgraded its trauma status, the county said it saw a significant increase in volume in the Santa Clara Valley Medical Center emergency department.

The county is also planning to restore Regional Medical Center’s labor and delivery services, which had been cut in 2020. Williams told San José Spotlight that the restoration of labor and delivery will likely take some time.

When the county initially said last summer it was looking to buy the hospitals, officials said the price was expected to be $175 million. But county officials said the agreement calls for buying the medical center for $150 million.

Jackie Van Blaricum, president of HCA Healthcare’s Far West Division, said the hospital’s staff would ensure a smooth transition.

“HCA Healthcare remains a strong community partner at Good Samaritan Hospital, and we look forward to continuing to provide the high-quality healthcare Santa Clara County deserves,” Van Blaricum said in a statement.

The county credited HCA for making significant investments in Regional Medical Center, including steps to comply with California’s seismic standards for facilities. Healthgrades has ranked Regional Medical Center among America’s top 250 hospitals for the past three years.

The medical center employs more than 1,000 people, and the county said it is planning to offer employment to all eligible workers. The county said it expects most hospital staff to remain with the medical center once the county takes ownership.

Regional Medical Center is the only hospital in East San José, an area which officials said is one of the county’s most diverse areas. More than half of the residents around the hospital are Latino, while nearly one-third are Asian-American, according to the county.

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