The County of Santa Clara, Calif., has reached a tentative agreement with Nashville, Tenn.-based HCA Healthcare to purchase its San Jose, Calif.-based Regional Medical Center for $175 million, allowing the hospital to integrate with the county operated Santa Clara Valley Healthcare system.
The county plans to pay for the $175 million hospital through approved FEMA reimbursements from COVID-19 pandemic county response efforts. The one time-funds are expected to be received over the next few months and are "appropriate to utilize to invest in acquiring RMC without negatively impacting the rest of the county budget," according to an Aug. 21 news release.
The 252-bed hospital is one of three county trauma centers and treats a range of critical and life-threatening conditions.
"We are proud of our more than $500 million investment in and service to the East San José community for the last 25 years," Jackie Van Blaricum, president of HCA Healthcare's Far West Division, said in the release. "We are pleased this move will position Regional Medical Center to continue providing access to affordable healthcare to patients in the area."
Regional Medical Center's trauma center and ST-elevation myocardial infarction program services were initially set to close Aug. 12 due to utilization rates. However, in early August, HCA discontinued closure plans and downgraded the hospital's trauma, comprehensive stroke and certain cardiac service levels.
"Making Regional Medical Center part of Santa Clara Valley Healthcare’s network of hospitals and clinics will ensure that East San José and the surrounding community continue to have access to top-notch Level II trauma, comprehensive stroke, specialized heart attack, and ultimately, labor and delivery care," James Williams, an executive for the county, said in the release. "In addition, the County will not have to make significant investments to expand staffing and facilities at our other hospitals, which would otherwise be required, by building on HCA Healthcare’s facility investments and operations at Regional Medical Center."
Both the county and HCA are working to negotiate a definitive purchase agreement and take the approval steps needed to move the transaction forward, which they hope to finalize in the first quarter of 2025.
The parties are also committed to ensuring a smooth transition for community members and hospital employees, the release said.