Santa Cruz County Pledges $5.5M To Purchase Watsonville Hospital

WATSONVILLE, CA — The Santa Cruz County Board of Supervisors voted Thursday to commit $5.5 million to help a new nonprofit healthcare district purchase and operate Watsonville Community Hospital.

The funding comes in addition to $500,000 previously pledged by the board in November. The item was approved without debate in the board’s consent calendar.

The hospital, which filed for Chapter 11 bankruptcy in December, will now be managed by the Pajaro Valley Healthcare District Project, a new agency composed of professionals from the County of Santa Cruz, the City of Watsonville, Pajaro Valley Community Health Trust, and Salud Para La Gente.

The healthcare district must be approved by state lawmakers and the governor.

“While the hospital remains open and offers a range of medical services to South County residents, under the current private ownership model it faces financial difficulties and is at imminent risk of closure,” Santa Cruz County said in a statement. “With 250,000 unique patient visits per year, the hospital provides critical services to an underserved population, including numerous census tracts ranking in the bottom quartile of the California Healthy Places Index.

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Watsonville Hospital: New Owner Could Be Chosen Soon