Santa Clara County to buy HCA hospital for $150 million

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The County of Santa Clara, California and HCA Healthcare have reached a definitive agreement in which the county will purchase Regional Medical Center for $150 million, the county said.

The two parties have signed an Asset Purchase Agreement, whereby RMC is planned to be integrated into the Santa Clara Valley Healthcare (SCVH) system.

While subject to the customary closing conditions and regulatory approvals, the transaction is expected to close on April 1, at which point the county is expected to assume operations at the hospital.

WHAT'S THE IMPACT?

RMC serves as the primary emergency healthcare provider for East San José, treating a range of critical and life-threatening conditions.

In August 2024, HCA Healthcare downgraded the level of trauma, comprehensive stroke and certain cardiac services (STEMI) at the 258-bed RMC. 

The county said it needed to act after HCA reduced the services earlier this month at Regional Medical Center, the only hospital in East San José. The changes created a surge in trauma patient volume at Santa Clara Valley Medical Center. 

The county plans to restore Level II trauma care immediately once it assumes hospital operations, and the county will add STEMI and comprehensive stroke services shortly thereafter, it said.

Labor and delivery services, which were closed at RMC in 2020, are expected to be restored at a later date.

RMC, a 258-bed hospital, has provided care to East San José for 60 years. According to the county, HCA Healthcare has made significant investments in the hospital during the last decade to improve access and address the diverse medical needs of the community, including meeting California's seismic-safety standards.

The hospital has been recognized nationally by Healthgrades, an independent quality ratings organization, as one of America's 250 best hospitals for three consecutive years.

The county and HCA Healthcare said they were focused on a smooth transition with minimal disruption to health services.

THE LARGER TREND

Last year, HCA signaled that it would make $5 billion in capital investments in 2024, with a large concentration in outpatient facilities.

In May, HCA Florida Healthcare said construction is now underway on the new $231 million HCA Florida Gainesville Hospital, the latest hospital planned as part of HCA's planned expansion across the state.

The new hospital and medical office building, targeted to open in early 2026, will build on the existing HCA Florida Gainesville Emergency Room, HCA said. 

The hospital will include a surgical services department, a catheterization lab, 60 medical/surgical beds, a 30-bed inpatient rehabilitation unit, and a full complement of imaging services available for the community. It's anticipated to house more than 200 colleagues, including physicians, other healthcare professionals and support personnel.

Jeff Lagasse is editor of Healthcare Finance News.
Email: jlagasse@himss.org
Healthcare Finance News is a HIMSS Media publication.