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San Ramon Regional Medical Center is set to be sold in full to John Muir Health, pending the approval and completion of a nine-figure deal with the current majority owner, Tenet Healthcare.
John Muir officials announced the deal on Wednesday in which Tenet Healthcare has agreed to sell its majority interest in the hospital — 51% — to John Muir Health for $142.5 million, which currently has a 49% interest. The transaction, which is subject to review by federal regulators, would make John Muir Health the sole owner.
“We believe that this acquisition is good for our community, caregivers, patients, and John Muir Health and San Ramon Regional Medical Center,” said Mike Thomas, president and CEO of John Muir Health.
John Muir Health previously invested nearly $100 million for its 49% stake in SRRMC in 2013, and partnered with Tenet Healthcare on their outpatient center in Pleasanton, which broke ground in 2015.
John Muir Health officials said that the local nonprofit healthcare system’s goals in numerous ways, including the integration of SRRMC into JMH’s electronic health record throughout their system, Epic, extending programming and investing in facilities and services at SRRMC.
“We view this as a long-term opportunity to expand our services and better serve the growing populations in the San Ramon Valley and Tri-Valley. By allocating fixed costs over a broader scope of operations, we will also improve cost effectiveness for patients and health plans,” Thomas said.
SRRMC is currently headed by CEO Ann Lucena, who took the torch from previous CEO Gary Sloan in 2018.
The deal is expected to be finalized this year, pending closing conditions that include approval by the Federal Trade Commission, with Tenet retaining majority interest in the hospital until then.
