The County of Santa Clara and HCA Healthcare have tentatively agreed on the County’s acquisition of Regional Medical Center (RMC). This move would enable the County to integrate RMC with the Santa Clara Valley Healthcare system operated by the County.
RMC is one of three trauma centers in Santa Clara County and is the main emergency healthcare provider for East San José, treating a wide range of critical and life-threatening conditions. Earlier this month, HCA Healthcare downgraded the level of trauma, comprehensive stroke, and certain cardiac services at RMC.
“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,” said County Executive James R. Williams. “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.”
RMC has a long history of providing care to patients in East San José – delivering $23 million in estimated costs for the delivery of charity care, uninsured discounts and other uncompensated care in 2023 alone. Over the last decade, significant investments have been made in the hospital to improve access to high-quality healthcare and address the diverse medical needs of the East San José community, including meeting California’s seismic standards.
The hospital garnered quality recognition from Healthgrades, an independent national quality ratings organization, as one of America’s 250 best hospitals for three consecutive years – 2024, 2023, and 2022 – putting RMC in the top 5% of hospitals nationwide for overall clinical performance.
“We are proud of our more than $500 million investment in and service to the East San José community for the last 25 years. We are pleased this move will position Regional Medical Center to continue providing access to affordable healthcare to patients in the area,” said HCA Healthcare Far West Division President Jackie Van Blaricum. “This will allow the Santa Clara Valley Healthcare system to expand and enhance their existing network and service lines, offer specialty and subspecialty services available in their network to the East San José community, and continue to deliver positive healthcare outcomes the community has come to expect from Regional Medical Center.”
The County Health System has a long history of caring for families in need across the community. In 2023, patients who were uninsured or covered by Medi-Cal or Medicare accounted for more than eight out of every 10 County hospital stays and clinic visits. Further, the County has one of the most generous financial assistance programs in the nation, which provides free or discounted care to eligible residents with incomes below 650% of the Federal Poverty Level.
The organizations are now seeking to negotiate a definitive purchase agreement, undergo due diligence, and take steps to obtain necessary approvals to move forward with the transaction. The parties hope to be able to complete the transaction in the first quarter of 2025.
With the successful transfer of ownership, the County and HCA Healthcare are committed to ensuring a smooth transition with minimal disruption to healthcare services for both community members and hospital employees.