"That's why I was deeply relieved when, after two years of tense negotiations, Santa Clara County was able to purchase RMC for $150 million in April. We avoided eminent domain and costly lawsuits - and more importantly, prevented a vital hospital from going bankrupt, as nearly happened with O'Connor and St. Louise in Gilroy. In both of those cases, the county stepped in to save a hospital when no one else would."
"The reality is this: Our hospitals alone are unprofitable because they serve a disproportionate share of Medi-Cal and Medicare patients with low federal reimbursements. Private systems often won't - or can't - sustain care for these populations. Only a public safety net entity like Santa Clara County can absorb the financial burden to provide care for all, regardless of income or insurance."
Santa Clara County purchased Regional Medical Center for $150 million after two years of negotiations to prevent bankruptcy and preserve essential services. The county reopened the hospital’s Trauma Level II emergency department on April 1 and began integrating RMC into the Valley Medical Center health system. RMC previously closed its Labor and Delivery ward in 2020 and announced planned shutdowns of Trauma Level II and STEMI services for August 2024 due to financial challenges. County hospitals run deficits because they serve a disproportionate share of Medi‑Cal and Medicare patients with low federal reimbursements. The county absorbs financial losses to maintain care for all residents.
#hospital-acquisition #trauma-and-emergency-services #public-safety-net-hospitals #medi-calmedicare-funding
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