John Muir Health will invest nearly $100 million to acquire part ownership of San Ramon Regional Medical Center in San Ramon and expand and improve services throughout the Tri-Valley.
The agreement would give John Muir, which serves patients in Contra Costa and Alameda counties and has more than 6,000 employees, a 49% stake in the 123-bed San Ramon hospital. The partnership is expected to close on or before March 31.
"This is a partnership between two leading healthcare organizations that share a commitment to providing patients with expanded choices for high-quality, patient-centered care, close to home," said Cal Knight, president and CEO of John Muir Health.
"In the midst of healthcare reform and a very competitive local environment, we will offer better, more accessible and integrated care together than we can apart," Knight added. "Together, we will pursue new and innovative ways to improve patient care, access to services and affordability."
John Muir Health and San Ramon Regional (a subsidiary of Tenet Healthcare) will jointly develop outpatient services, such as Ambulatory Care Centers and other projects to be determined, in the Tri-Valley and nearby communities.
The partnership is expected to increase patient access to services and align outpatient and physician-focused healthcare, partially using a governing board selected by both organizations. John Muir Health's existing hospitals, facilities and other assets are not included in the agreement.
"This partnership with John Muir Health exemplifies our strategy of enhancing and expanding the integrated healthcare services we offer our patients in California," said Jeff Koury, senior vice president of operations for Tenet's California region.
"We continually evaluate collaboration opportunities with healthcare providers, physician groups and others in our markets to maximize effectiveness, reduce costs and integrate patient care coordination across the care continuum," he added.
John Muir is an independent, not-for-profit health system with hospitals in Walnut Creek and Concord and Contra Costa County's only trauma center. John Muir also owns a not-for-profit medical foundation that contracts with more than 925 physicians.
San Ramon Regional Medical Center has operated since tjer 1990s and has served as a leader in technological care advancements.