Santa Clara County Considers Expanding Healthcare System Through Hospital Purchase
Santa Clara County Considers Expanding Healthcare System Amid Economic Pressures
With the ongoing economic challenges and increased patient loads post-COVID, Santa Clara County is exploring the possibility of expanding its healthcare system by acquiring another local hospital. The county, which already operates a significant public hospital system, is facing strains on its resources and capacity to care for patients.
County supervisors have been holding closed-door meetings to discuss the potential acquisition of a new health care facility, although details have not been disclosed to the public. In February, the county signed a $3 million contract with Cain Brothers, a New York-based investment banking firm specializing in hospital acquisitions and evaluations, to assist in the process.
One potential target for acquisition is Regional Medical Center in San Jose, owned by HCA Healthcare, a company that oversees numerous hospitals across the United States and the United Kingdom. The discussions with HCA Healthcare have been kept confidential, with a spokesperson stating that they do not comment on ongoing discussions unless there is an official announcement.
The county currently operates Santa Clara Valley Medical Center, O’Connor Hospital, and Saint Louise Regional Hospital, serving a large number of lower-income residents. However, the system is facing challenges due to nearby hospitals in financial distress, such as Hazel Hawkins Memorial Hospital and Watsonville Community Hospital, potentially sending more patients to Santa Clara County for care.
County Executive Jeff Smith highlighted the impact of the region’s high cost of living, recent layoffs, and an increase in uninsured or underinsured individuals seeking care. The expansion of Medicaid eligibility in the state has also led to more patients moving from private hospitals to the public system, further straining resources.
If the county proceeds with acquiring another hospital system, it could help alleviate the growing demand for healthcare services. However, concerns have been raised about maintaining quality standards and ensuring that new facilities align with the county’s existing system. Healthcare workers, including trauma surgeon Gregg Adams and nursing union leader Allan Kamara, have emphasized the importance of expanding services to meet community needs while ensuring high-quality care.
Despite potential challenges, recent legal battles over previous hospital acquisitions have set a precedent that could work in the county’s favor. The acquisition of O’Connor and Saint Louise hospitals in 2019 faced opposition from the state’s Attorney General but was ultimately approved by a bankruptcy judge.
As Santa Clara County navigates the complexities of expanding its healthcare system, the community will be watching closely to see how these developments will impact patient care and access to services in the region.