Santa Clara Valley Health and Hospital System staff told the Health and Hospital Committee on Aug. 22 that the Regional Medical Center (RMC) integration is performing well operationally and that systemwide patient volumes and surgical cases are increasing.

Paul (presenting for Santa Clara Valley Healthcare) and other system leaders reported that recent regulatory surveys'including the California Department of Public Health change-of-ownership survey and a Joint Commission accreditation extension survey'had no findings. A Joint Commission verification conferred a thrombectomy-capable stroke center designation for RMC.

RMC metrics cited by staff included a July average inpatient census of 167 (a 21% increase since April), average daily emergency-department volumes of roughly 220 patients at RMC, and notable increases in surgical case volumes (staff reported a 65% increase since April). Staff said the first quarter of operations (April through June) showed a favorable performance to budget of approximately $12,000,000 compared with prior forecasts.

Staff reported a submitted licensing application for labor-and-delivery and neonatal intensive-care services at RMC (application submitted July 16) and said they are targeting a community ribbon-cutting in mid-October 2025 with patient services to begin the week after. Staff cautioned that licensure and regulatory approvals remain a scheduling risk but said they are coordinating with state regulators.

Committee members praised the operational progress and emphasized that the systemwide gains underscore the importance of protecting hospital revenue streams threatened by HR 1. The committee received the report without revision.

Why it matters: The RMC acquisition and system integration are central to county hospital capacity; rising volumes and successful surveys indicate operational stabilization, while planned service expansions (labor-and-delivery, NICU) restore previously closed services for the region.

What's next: Staff will proceed with licensing and operational preparations for the October opening and continue to report system volumes and financial trends to the committee; staff reiterated that federal funding actions could reduce projected operating margins going forward.