John Muir Health Purchases 49% of San Ramon Regional Medical Center

January 25, 2013 13:00 pm · 15 comments


Tenet Healthcare Corporation and John Muir Health today announced the creation of a joint venture partnership between San Ramon Regional Medical Center, a 123-bed acute care hospital in San Ramon, and John Muir Health, based in Walnut Creek. John Muir Health is a not-for-profit integrated system of doctors, hospitals and other healthcare services in the San Francisco Bay area.

The following press release is from John Muir Health:

Through this partnership, John Muir Health will invest approximately $100 million to acquire a 49 percent ownership interest in San Ramon Regional Medical Center, and together, the two organizations will expand and improve the efficiency and coordination of care in the TriValley area and nearby communities, including San Ramon. This transaction is expected to close on or before March 31, 2013 and is subject to customary approvals and other closing conditions. John Muir Health and Tenet will also jointly develop outpatient services, such as Ambulatory Care Centers and other projects to be determined, in the Tri-Valley area and nearby communities, including San Ramon.

The new partnership will build on the strengths of both organizations, increase patient access to a superior network of services and align outpatient and physician-focused healthcare in the region. New hospital and ambulatory care governing boards will be selected by both organizations. While the two organizations will work together to further develop San Ramon Regional Medical Center and future outpatient projects in the area, John Muir’s existing hospitals, facilities and other assets are not included in the partnership agreement.

“We are proud to partner with such a well-respected healthcare provider,” said Gary Sloan, chief executive officer of San Ramon Regional Medical Center. “John Muir Health has a long and valued reputation in the Bay area and is a great strategic partner for our hospital. Through our shared values and commitment to deliver outstanding patient care, we are creating a comprehensive, integrated healthcare network.”

“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. Together, we will pursue new and innovative ways to improve patient care, access to services and affordability.”

John Muir Health is a highly-regarded, not-for-profit system of doctors, hospitals and other services. Anchored by two of the largest medical centers in Contra Costa County, John Muir Medical Center, Walnut Creek and John Muir Medical Center, Concord, with a total of 885 licensed beds, John Muir Health also owns a not-for-profit medical foundation that contracts with more than 925 physicians. San Ramon Regional Medical Center has provided award-winning care to its community since 1990, and has served as a leader in technological care advancements, including being the first hospital on the West Coast to offer the da Vinci™ Surgical System and one of the first to offer an advanced, minimallyinvasive breast biopsy system.

“This partnership with John Muir Health exemplifies our strategy of enhancing and expanding the integrated healthcare services we offer our patients in California. 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,” said Jeff Koury, senior vice president of operations for Tenet’s California region.

photo: Claycord File Photo – Mike “Radar” Dunn

J. January 25, 2013 at 1:38 PM

Great news.

Who's Crazy January 25, 2013 at 3:01 PM

Millions of smokers could be priced out of health insurance because of tobacco penalties in Obama’s health care law, according to experts who are just now teasing out the potential impact of a little-noted provision in the massive legislation. (should have read it, right Nancy)
The Affordable Care Act — “Obamacare” to its detractors — allows health insurers to charge smokers buying individual policies up to 50 percent higher premiums starting next Jan. 1.
For a 55-year-old smoker, the penalty could reach nearly $4,250 a year. A 60-year-old could wind up paying nearly $5,100 on top of premiums.
FINALLY some fairness for non-smokers.
Next …………… the obese.

Always Right January 25, 2013 at 3:12 PM

Monopoly alert ! Not good !

Less competition means higher prices. Unless you are a fat cat government union employee who has employer paid healthcare, you are the loser on this deal.

@Who's Crazy January 25, 2013 at 3:30 PM

Good. It’s about time a politician with balls stood up to the tobacco industry. I’m tired of subsidizing smokers. Let them pay higher health care premiums just like high risk drivers pay a higher auto insurance premium.

Marylee January 25, 2013 at 3:31 PM

49%? Sounds like John Muir Health may have escaped the property reassessment that would increase the property taxes – a loophole in Prop 13 for corporate and commercial property exchanges.

Patricia January 25, 2013 at 4:02 PM

Tenet was originally called National Medical Enterprises. I worked for the company then. They changed their name to Tenet when they got caught doing something illegal. I don’t remember exactly what. There have been several other legal issues over the years. Tenet is a for profit hospital and JM is not-for-profit. This whole thing doesn’t sound good to me.

Anonymous January 25, 2013 at 4:24 PM

No wonder John Muir is so expensive. It sounds like they have money to burn. How about lowering the fees for services (and “supplies”)?

@ Always Right January 25, 2013 at 4:25 PM

Obviously, you have no idea as to how health care providers negotiate contracts with health insurance contracts. Why don’t you do a little research and educate yourself before you start sounding alarms.

Antler January 25, 2013 at 5:01 PM

Please would a physician or health care expert clarify whether “acute care hospital” and “trauma center” are the same thing? ( I’m hoping this corporate co-operation might also take some of the pressure off of John Muir, WC, Hospital’s emergency transport and emergency surgery responsibilities.)

Seal January 25, 2013 at 6:09 PM

A trauma center provides care for people that have been immediately impacted from an accident, fall, or something that has impacted the body. Such people usually have broken bone, severely torn muscle or body tissue, etc. . An acute care facility maintains patients over a short period of time for a critical illness such as plague, unusual flu viruses, etc; or people who have a heart attack, stroke, organ malfunction etc..

Always Right January 25, 2013 at 8:15 PM

Obviously a merger of this kind will result in higher prices. Prices will be set by John Muir. San Ramon Regional will raise prices accordingly. Any operational efficiencies will benefit the hospital, not those of us who pay the bills.

BCuzItzClaycord January 25, 2013 at 8:46 PM

Seal #10 – nice informative answer to Antler #9 question
Always Right @ #11 – I’m a short time reader of this “blog” and will not be reading much longer as we are leaving the area after an 17 month stint here……………but you are a very negative person. Maybe you should get counseling to deal with you issues as you seem to complain about everything………… sad it must be to be you as you seem so miserable since you do nothing but complain

Antler January 26, 2013 at 2:58 AM

Seal at #10 ~ ~ ~ Thank you! So now I’m wondering whether “acute care” facilities and “short-term care” facilities are the same thing here in California. My only experience with such facilities was in North Carolina…..many years ago when my mother had a heart attack and was treated in the regular hospital for three days and nights and then was moved to what they call a “short-term care” facility (and yes, there were also people recovering from major surgery, burns, car accidents, pneumonia, lots of serious things). Am I being confused by a regional difference of terminology?

co-co-res January 26, 2013 at 6:32 AM

obamacare stole half of my flexible spending account that I have had all of my working life; I am 57 now; how the F is that going to help me. it has always been $5,000 since I started full-time working in 1975. i’m healthy and this is the only benefit i pretty much use except for eye check-ups and teeth cleanings. Obamacare sucks. WTF kind of people do we have running our government anyway?

co-co-res January 26, 2013 at 6:35 AM

p.s. you’ll never catch me at John Muir anywhere. I had the worst experience last time I was in their emergency in Walnut Creek. Feel sorry for anyone having to use them for medical care. John Muir and their related affiliates are cattle oriented only like Kaiser. if you ever break a bone RUN! Don’t go here.

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