Santa Clara (Calif.) County's board of supervisors voted unanimously to appropriate $315 million toward its efforts to acquire East San Jose, Calif.-based Regional Medical Center from HCA Healthcare and restore services, the San Jose Spotlight reported Sept. 24.
The county is still finalizing its agreement to purchase Regional Medical Center from Nashville, Tenn.-based HCA, according to the report. The board is allocating $175 million of the appropriated funds toward acquisition of the hospital.
The appropriation also includes:
- $80 million to fund the first few months of hospital operations while awaiting reimbursements from commercials payers, Medi-Cal and Medicare.
- Up to $30 million to purchase independently owned medical office buildings near the hospital.
- Up to $20 million to purchase and implement EHR software.
- $10 million for broker fees and inspections.
As soon as the acquisition is completed, county officials plan to restore trauma, stroke and heart attack services that were cut from the hospital in August, according to the report. Officials are hoping to transition the 252-bed hospital's workforce to county employment early next year.
Previously cut obstetrics, labor and delivery and newborn-care services are also slated to be restored, but no timeline has been set for those services.
The county acquired three struggling medical facilities in 2019, with officials telling nearly 1,700 workers that they could keep their jobs, according to the report. Workers, however, said the county reneged on that promise. County executive James William said there will be a merit system in place to onboard Regional Medical Center employees, which will "greatly ease and reduce what was definitely the biggest source of friction in the 2019 acquisition."