Judge Approves Sales Of Watsonville Hospital To PVHDP

WATSONVILLE, CA — A federal bankruptcy judge approved the sale of Watsonville Community Hospital to the newly-formed Pajaro Valley Healthcare District Project, Santa Cruz County announced Wednesday.

After an agreement is signed, the PVHDP will have until August 31 to close the sale. The district, which was signed into existence by Gov. Newsom on Feb. 4 and consists of a mixture of local government agencies and healthcare nonprofits, is in the process of raising money for the purchase and the initial operating costs of the hospital, according to a county news release.

Through assistance from State Sen. John Laird and Assemblymember Robert Rivas, the district says it anticipates receiving up to $20 million from the state of California. The district has also secured commitments from the County of Santa Cruz, the County of Monterey, the Central California Alliance for Health, the Community Health Trust of the Pajaro Valley, the City of Watsonville, Kaiser Foundation Health Plan, and Dominican Hospital/CommonSpirit, according to a county news release.

“We envisioned a future in which Watsonville Community Hospital is led by the community and purposed for the community through close community connections, transparency in governance and financial accountability,” Mimi Hall, PVHDP board member and spokesperson, said in a statement.

“While we still have more work to do, the outcome of the sale hearing means the hospital will stay open through this transition and the vision that has guided us for many months is within reach. PVHDP will build on today’s success by turning our focus to the ongoing sustainability of the hospital and working with the community to establish our new healthcare district.”

"On behalf of the Hospital, we welcome partnering with PVHDP as it shares the same goal of
everyone who works here - to provide exceptional quality healthcare services to all who walk
through our doors,” Watsonville Community Hospital CEO Steven Salyer said in a statement.
“With a community-led hospital, we believe our staff, providers and community will have a sustainable facility for years to come."

The Santa Cruz County Board of Supervisors is searching for applicants for the PVHDP’s five-member board. Applicants must be permanent residents of the boundaries of the Health Care District, and have experience in either government, healthcare, or business. Applications are open here until March 4.