Pajaro Valley Healthcare District Approved By California Senate

WATSONVILLE, CA — The California State Senate unanimously approved a bill to form a healthcare district to manage Watsonville Community Hospital. The bill is now headed to Gov. Gavin Newsom’s desk, and will take effect immediately if signed.

After Watsonville Community Hospital filed for Chapter 11 bankruptcy in December, Santa Cruz County, the City of Watsonville, the Community Health Trust of the Pajaro Valley, and Salud Para La Gente formed the nonprofit Pajaro Valley Health District Project. The new health district’s goal is to facilitate a sale through the bankruptcy process and avoid hospital closure. Currently, the hospital remains open and offers a full range of medical services.

The hospital serves an area with disproportionately low household income and access to quality housing, transportation, and healthcare, according to the California Healthy Places Index. Forty-three percent of the hospital’s gross revenue comes from the state Medi-Cal program, and 30 percent of its gross revenue comes from Medicare.

“Given the hospital’s bankruptcy status, this legislation is the only pathway to preserving access to health care, creating accountability and addressing glaring health disparities for the people of the Pajaro Valley,” Pajaro Valley Healthcare District Board Member Mimi Hall said in a statement. “We are grateful to our entire delegation for the urgent and focused attention they brought to this matter, and we look forward to seeing this bill become law in the not-too-distant future.”

Earlier this month, the Santa Cruz County Board of Supervisors voted to allocate $5.5 million to the district, in addition to $500,000 pledged in November.

Related:

• Santa Cruz County Pledges $5.5M To Purchase Watsonville Hospital
• Watsonville Hospital: New Owner Could Be Chosen Soon
• Watsonville Hospital Sale: Nonprofit Steps Up To Avoid Closure