Santa Clara County considers expanding healthcare system with purchase of another hospital

Santa Clara County is facing a healthcare crisis in the post-COVID era, with economic pressures and increased caseloads straining its ability to care for patients. To address this issue, the county is considering expanding its healthcare system by purchasing another area hospital.

County supervisors have been meeting behind closed doors to discuss the proposed health care facility, with a $3 million contract signed with a New York-based investment banking firm specializing in hospital acquisitions. One potential target for acquisition is Regional Medical Center in San Jose, owned by HCA Healthcare.

The county currently operates O’Connor Hospital, Saint Louise Regional Hospital, and Santa Clara Valley Medical Center, serving as the second-largest public hospital system in the state. The potential expansion comes as neighboring hospitals face financial instability, leading to an influx of patients seeking care in Santa Clara County.

The high cost of living in the Bay Area, recent layoffs, and an increase in Medi-Cal eligibility have further strained the county’s healthcare system. County Executive Jeff Smith highlighted the challenges faced by the system and the need for additional resources to meet the growing demand for healthcare services.

While some healthcare workers see the potential acquisition as a way to alleviate the burden on the system, others express concerns about maintaining patient care standards. The county’s nursing union emphasizes the importance of expanding services to meet community needs, particularly in areas like behavioral health.

If the county moves forward with purchasing another hospital system, recent legal battles over previous acquisitions could work in its favor. Despite the challenges, the county remains committed to providing quality healthcare services to its residents amidst a changing healthcare landscape.