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California county buys 2 hospitals for $235M

Santa Clara County (Calif.) bought two financially struggling hospitals for $235 million in an attempt to ease crowding at Fruitdale, Calif.-based Santa Clara Valley Medical Center, which is operated by the county, according to the Santa Cruz Sentinel.

The county entered the only bid for San Jose, Calif.-based O'Connor Hospital and St. Louise Regional Hospital in Gilroy, Calif., which were both owned by Redwood City, Calif.-based Verity Health System. The sale was part of the system's bankruptcy organization.

The 380-bed Santa Clara Valley Medical Center is currently at 91 percent capacity, and the acquisition of the two hospitals will add 456 beds.

"It's pretty exciting," said county executive Jeff Smith, MD. "The whole county population is increasing, and we need additional beds and space."

More articles on transactions and valuations:

Mount Sinai finalizes partnership with South Nassau
Rural Connecticut residents fight hospital merger, cite broken promises by Health Quest
Orlando Health takes over 170-bed Florida hospital

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