Newsom Signs Bill Creating Pajaro Healthcare District

WATSONVILLE, CA — Gov. Gavin Newsom signed a bill Friday to approve the immediate creation of the Pajaro Valley Healthcare District, a public nonprofit that will purchase the Watsonville Community Hospital. Newsom’s signature came almost immediately after the unanimous Senate passage of Senate Bill 418, which created the district.

The new health care district is a nonprofit staffed by the County of Santa Cruz, the City of Watsonville, the Community Health Trust of Pajaro Valley, and Salud Para La Gente that will manage the sale of the hospital, which filed for Chapter 11 bankruptcy in December. In late November, hospital CEO Steven Salyer said the hospital would have to be sold or closed by March.

The PVHCD will work with the hospital – which services an area with disproportionately low household income and access to quality housing, transportation, and healthcare, according to the California Healthy Places Index –to build financial backing before a future sale. The hospital remains fully operational.

“I want to thank Governor Newsom for signing this urgent and important piece of legislation that will help preserve access to health care services for Pajaro Valley residents,” Sen. John Laird of Santa Cruz, who co-authored Senate Bill 418, said in a news release. “The governor’s signature on SB 418 further demonstrates his commitment to ensuring vulnerable communities are not left without the safety net of health care, especially as COVID19 continues to spread throughout our communities.

Gov. Gavin Newsom signed a bill Friday to approve the immediate creation of the Pajaro Valley Health Care District, a public nonprofit that will purchase the Watsonville Community Hospital. Newsom’s signature came almost immediately after the unanimous Senate passage of Senate Bill 418, which created the district.

The new health care district is a nonprofit staffed by the County of Santa Cruz, the City of Watsonville, the Community Health Trust of Pajaro Valley, and Salud Para La Gente that will manage the sale of the hospital, which filed for Chapter 11 bankruptcy in December. In late November, hospital CEO Steven Salyer said the hospital would have to be sold or closed by March.

The PVHCD will work with the hospital – which services an area with disproportionately low household income and access to quality housing, transportation, and healthcare, according to the California Healthy Places Index –to build financial backing before a future sale. The hospital remains fully operational.

“I want to thank Governor Newsom for signing this urgent and important piece of legislation that will help preserve access to health care services for Pajaro Valley residents,” Sen. John Laird of Santa Cruz, who co-authored Senate Bill 418, said in a news release. “The governor’s signature on SB 418 further demonstrates his commitment to ensuring vulnerable communities are not left without the safety net of health care, especially as COVID19 continues to spread throughout our communities.

Related:

• Pajaro Valley Healthcare District Approved By California Senate
• 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