John Muir Health Assessing Options After Federal Trade Commission Challenges Acquisition of San Ramon Regional Medical Center

(Walnut Creek, Calif.) – Today, John Muir Health (JMH) and Tenet Healthcare learned that the Federal Trade Commission (FTC) has decided to challenge JMH’s agreement with Tenet to acquire sole ownership of San Ramon Regional Medical Center (SRRMC). JMH has owned a 49% interest in SRRMC since 2013 and, under the proposed agreement, would acquire the remaining 51% interest from Tenet.

“We are disappointed by the FTC’s decision, and are discussing our options and next steps, including challenging the decision in court,” said Mike Thomas, president and CEO of John Muir Health. “We believe the proposed acquisition would benefit our community, caregivers and patients, as well as John Muir Health, San Ramon Regional Medical Center, and Pleasanton Diagnostic Imaging.”

For now, SRRMC will continue to operate under the current joint venture structure between JMH and Tenet with Tenet managing the operations of the hospital. Pleasanton Diagnostic Imaging (PDI), which is also part of the proposed agreement, will remain operated by United Surgical Partners International (USPI).

After announcing the agreement in January, JMH and Tenet learned in late March that the FTC intended to conduct a more in-depth review of the transaction. As part of the FTC’s review process, JMH and Tenet submitted a large volume of documents and data, as well as expert testimony on the Bay Area health care market and letters of support from local community leaders and government officials. 

By acquiring SRRMC and PDI, JMH would be able to further enhance care for the community by:

• Integrating SRRMC and PDI onto JMH’s version of Epic, the electronic health record used in the health system’s inpatient and outpatient facilities and by nearly 1,000 physicians and healthcare providers throughout the community.
• Extending JMH’s quality enhancement and population health programs to SRRMC and the surrounding community.
• Making investments in facilities and enhanced services at SRRMC to reduce the number of patients leaving the community for their care.

Acquiring SRRMC is consistent with JMH’s history and would further the health system’s mission to improve the health of the communities it serves with quality and compassion. In 1997, John Muir Medical Center and Mt. Diablo Medical Center came together along with the John Muir Physician Network to create John Muir Health to better serve the community.

“We appreciate the patience of John Muir Health, San Ramon Regional Medical Center and Pleasanton Diagnostic Imaging-affiliated employee and physicians throughout this process,” continued Thomas. “Once we determine our course of action, we will communicate with all impacted audiences.”