California city approves $1.2B HCA hospital expansion

The San Jose (Calif.) City Council has approved the $1.2 billion expansion of Good Samaritan Hospital, owned by Nashville, Tenn.-based HCA Healthcare, San Jose Spotlight reported Nov. 19.

The vote followed an October recommendation by the San Jose Planning Commission to reject the expansion, primarily due to concerns about HCA Healthcare.

The 1 million-square-foot project will add two hospital wings and a medical office building. The council unanimously approved the environmental impact report and rezoning for the expansion. 

As part of the agreement, HCA will direct $3 million in commercial linkage fees toward homelessness and housing in San Jose. One-third of the funding will go toward emergency housing solutions, while $2 million will support San Jose's emergency temporary housing fund for affordable housing development, San Jose Spotlight reported.

Community members and officials have expressed concerns about the expansion, citing HCA's closure of an 18-bed inpatient psychiatric facility and reduced services at Regional Medical Center in San Jose, according to the report.

Mayor Matt Mahan emphasized that the vote pertained strictly to the environmental report and infrastructure upgrades necessary for Good Samaritan to meet California's seismic safety standards by 2030.

"In good conscience, I must do everything in my power to ensure that Good Sam stays open," Council member Pam Foley said during the meeting. "If Good Sam closes because it cannot meet the (seismic) timeline, we lose access to critical healthcare resources."

HCA representatives said they are open to discussions about adding psychiatric beds and are exploring the formation of an advisory committee in early 2025 to address concerns about behavioral health services. Currently, the hospital offers psychiatric care through intensive outpatient services and partial hospitalization, according to the report.

"We are thankful for the San Jose City Council's approval of Good Samaritan Hospital’s proposed $1.2 billion investment to meet the state’s earthquake-safety mandates," a spokesperson for Good Samaritan said in a statement shared with Becker's. "This investment is crucial for ensuring that our 55,045 annual patients have continued access to essential community healthcare, both now and in the future. We deeply appreciate the Council’s decision and the support of the San Jose community."

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