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Santa Clara County Reaches ‘Definitive’ Deal to Buy East San José Hospital for $150 Million

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The front of Regional Medical Center.
Regional Medical Center in East San José. (Joseph Geha/KQED)

Santa Clara County officials have reached a deal with the nation’s largest private hospital operator to purchase Regional Medical Center in East San José and fold it into the public health care system.

The county announced the “definitive agreement” on Monday afternoon, saying it would pay Nashville-based HCA Healthcare $150 million for the 258-bed hospital, with the deal set to close on April 1, pending regulatory approval.

The price and timeline details add clarity to the county’s rough plan to buy the facility, which it initially announced in August, following months of community outcry about major service cutbacks under HCA’s watch. The county has pledged to reverse those cuts.

“The scaling back of health services at RMC has hit East San José hard. The County’s purchase and saving of Regional Medical Center, located in the heart of one of the most marginalized and historically disadvantaged areas of our county, is essential to restore critical healthcare access,” county Supervisor Betty Duong, who represents the area, said in a statement. “I am so proud of our county staff and Board of Supervisors for making this happen, and I look forward to seeing full services return to Regional Medical Center as soon as possible.”

The deal comes a little less than a year after HCA announced its intention to make major service reductions at the hospital, which also houses the only trauma center on the east side of the county — setting off months of protests and demonstrations opposing the cuts.

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The company had previously planned to shutter the hospital’s trauma center, eliminate its severe heart attack services and reduce stroke services.

HCA partially backed off those plans in mid-July after a group of health care workers, community members, patient advocates and elected officials decried the cuts, alleging the company was prioritizing profit margins over people’s health.

County officials warned, in an April report, that cutting services at the hospital could have a “cascading effect” on Santa Clara Valley Healthcare, placing undue pressure on the county public health system that already manages three hospitals and a series of clinics and health centers.

The company ultimately downgraded the facility’s trauma center, offering lower levels of care and relying more heavily on transferring patients to other facilities miles away.

It also trimmed its severe heart attack services instead of eliminating them altogether and reduced stroke services from “comprehensive” to just above “primary” levels.

The cuts at the hospital were “unacceptable,” Susan Ellenberg, president of the county Board of Supervisors, said in Monday’s statement.

“When the trauma center was downgraded, we immediately saw impacts at Valley Medical Center and other parts of our health system. We look forward to begin restoring lost services for the community on Day 1 of the deal closing,” she said.

In large part because of the cuts it made at Regional Medical Center, the HCA’s proposal to overhaul and expand Good Samaritan Hospital in the San José’s West Valley area faced stiff opposition from residents and community advocates. However, the San José City Council ultimately approved the major development plan in November.

HCA “remains a strong community partner at Good Samaritan Hospital, and we look forward to continuing to provide the high-quality health care Santa Clara County deserves,” the company said in a statement.

Darcie Green, executive director of health nonprofit Latinas Contra Cancer, has been one of the most vocal critics of HCA’s recent cuts to hospital services.

The deal is “a monumental win for our community, ensuring that health care is accessible to everyone, not just those who can afford it,” Green told KQED.

“By bringing Regional Medical Center under public ownership, the county has prioritized people over profits and reaffirmed its commitment to equitable care for all residents,” she said. “This move represents a brighter future where no one is left behind in their time of need.”

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