California county weighs options on hospital facing 2030 closure

Advertisement

While Santa Paula (Calif.) Hospital and its surrounding ambulatory care clinics remain fully operational, Ventura County (Calif.) Health Care Agency officials are evaluating the facility’s long-term plans as they consider a Jan. 1, 2030, compliance deadline that officials said could risk closure. 

Santa Paula Hospital was required in December 2025 to commit to the seismic requirement deadline, which would cost more than $25 million in compliance and deferred maintenance, according to a June presentation from the county. Hospital officials told Becker’s in November 2025 that the hospital is at risk of closure due to the requirements. 

The hospital’s expenses have exceeded revenue “for many years”; however, losses have improved over the last three years, the county said in its presentation. Fiscal 2024-2025 saw an average of nine inpatients a day on losses of $7.5 million annually (-21% margin). 

Inpatient volume at Santa Paula Hospital is down 23% over the last four years, with outpatient surgeries up 36% in that time frame. The hospital’s obstetrics, birthing center and intensive care unit also closed in 2024. 

“HR-1 is projected to significantly reduce public hospital funding — cutting an estimated $930 million in 2026 and surpassing $3.4 billion by 2032,” the county said. “This places substantial pressure on Ventura County Medical System, where roughly 60% of patients rely on Medi-Cal, due to anticipated losses across various State and Federal government funding as well as projected enrollment declines tied to new work and reapplication requirements.”

The Ventura County board directed employees in November 2025 to evaluate systemwide facility utilization, service capacity and sustainable future service delivery in the Santa Clara Valley area, which include the consideration of healthcare authority and healthcare district governance models. 

County employees plan to return this summer with an updated assessment of associated costs, assessment of options and recommended next steps. 

At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.

Advertisement

Next Up in Financial Management

Advertisement