After moving to phase out acute care and emergency services at its Laguna Beach, Calif., campus earlier this year, Providence has agreed to evaluate a smaller-scale hospital that would include an emergency department and a minimal number of acute care beds, according to a Sept. 2 joint statement from the health system and the city.
Renton, Wash.-based Providence and the city of Laguna Beach said in the statement that the update follows ongoing discussions, including an Aug. 24 meeting between representatives of both parties. The city said it believes the most critical feature for the site is 24/7 emergency medical services that can accept patients by ambulance, and that a smaller-scale hospital is the surest way to achieve it. Providence committed to an internal, fact-based evaluation of the model, though the analysis does not commit the system to pursuing it.
The two also agreed to jointly sponsor 2027 legislation that would permit a standalone emergency department in Laguna Beach, which state law does not currently allow, according to the statement. Both said they recognize the value of engaging Orange County Emergency Medical Services in a study of local and regional effects tied to changes at the campus and committed to participating fully.
“We are continuing to evaluate how we can best serve Laguna Beach in a way that reflects how care is delivered today, responds to the community’s priorities and is sustainable for the future,” Providence Mission Hospital Chief Executive Seth Teigen said in the statement.
The hospital in February began a multiyear planning process to transition the campus to an outpatient-focused model, citing low inpatient demand and the cost of seismic upgrades required by a 2030 state deadline. On average, 80% of the hospital’s 159 licensed beds are unused each day, a Providence spokesperson previously told Becker’s. Mr. Teigen has said compliance would cost about $300 million, with another $50 million for plumbing and electrical systems.
The Laguna Beach City Council adopted a hospital action plan in March that included forming a 16-member task force, which has met twice, the statement said. Council member Alex Rounaghi said in the statement that the emergency department logged 14,827 visits last year and that six of every 10 city ambulance transports go there.
Providence Mission Hospital operates campuses in Laguna Beach and Mission Viejo, Calif. The Providence system has been divesting hospitals and other assets as part of a portfolio review, and posted $175 million in operating income in the first half of 2026, a $400 million year-over-year improvement.
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