California hospital plans for 673 layoffs if sale falls through

Watsonville (Calif.) Community Hospital is preparing to lay off 673 workers in August, according to a Worker Adjustment and Retraining Notification Act notice filed in July.

The hospital, which filed for Chapter 11 bankruptcy in December, expects the layoffs to occur between Aug. 17 and Aug. 31, according to the July 11 notice. 

Watsonville Community Hospital has postponed the layoffs several times since Pajaro Valley Health Care District, a nonprofit, agreed to buy the hospital out of bankruptcy. In July, the state of California agreed to provide $25 million to help fund the purchase.

"We cannot be certain at this time when and whether the sale will go through, however the additional funding and funding commitments provided by the buyer will allow WCH to continue operations" through the end of August, the notice states.

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