Santa Clara County to Acquire Regional Medical Center for $150 Million

SAN JOSE, Calif. — Santa Clara County has finalized a $150 million deal to purchase Regional Medical Center from HCA Healthcare, ensuring the East San Jose hospital remains a critical part of the community’s healthcare system. The agreement, announced Monday, will transfer ownership of the 258-bed facility to the county on April 1, 2025, pending regulatory approval.

The purchase comes after months of uncertainty following HCA Healthcare’s decision to downgrade the hospital’s trauma center from Level II to Level III in August 2024. The downgrade eliminated certain life-saving services, including neurosurgery, and left the East Side without a Level II trauma center. The next closest Level I trauma centers are Valley Medical Center, eight miles away, and Stanford Health Care, more than 20 miles away.

County Executive James Williams called the acquisition a “huge win for the community” and a strategic move to stabilize healthcare access in the eastern part of Santa Clara County. “This is going to help ensure there is stability and access to integrated care for the entire eastern part of Santa Clara County, and that creates stability across the Santa Clara Valley Healthcare System,” Williams told The Mercury News.

HCA Healthcare, a Tennessee-based company, had initially planned to shutter the trauma center and reduce services for cardiac arrest and stroke patients. After community outcry, the company scaled back its cuts but maintained the downgraded trauma center status. Jackie Van Blaricum, president of HCA Healthcare’s Far West Division, said the company’s caregivers would ensure a smooth transition to county ownership. “HCA Healthcare remains a strong community partner at Good Samaritan Hospital, and we look forward to continuing to provide the high-quality healthcare Santa Clara County deserves,” Van Blaricum said in a statement.

County officials have pledged to restore Regional Medical Center’s Level II trauma center designation immediately after the sale closes. They also plan to reinstate cardiac arrest and stroke services and eventually bring back labor and delivery services, which were discontinued in 2020. “There will be no disruption in services,” Williams said. “The hospital itself literally will move from HCA operation to county operation overnight.”

Supervisor Betty Duong, whose district includes the hospital, emphasized the importance of the purchase for East San Jose, a historically underserved area. “The scaling back of health services at RMC has hit East San Jose hard,” Duong said. “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.”

The deal marks the end of a nearly yearlong saga that began when HCA announced plans to cut services at the hospital. Community advocates, healthcare workers, and elected officials rallied against the cuts, arguing they would disproportionately affect low-income residents. Darcie Green, executive director of Latinas Contra Cancer, praised the county’s decision to take over the hospital. “This move represents a brighter future where no one is left behind in their time of need,” Green said.

Santa Clara County’s acquisition of Regional Medical Center will expand its public healthcare system, which already includes three hospitals and numerous clinics. The county’s healthcare system is the second-largest of its kind in California.