Watsonville (Calif.) Community Hospital’s board reviewed its financial performance and potential operation changes at its Sept. 22 board retreat, which includes both growth opportunities and potential closure of services.
Watsonville Community lost $22.4 million in 2025 and $10 million in the last six months, a spokesperson for the hospital confirmed Sept. 24 with Becker’s.
The hospital is also facing a cash shortfall of $85,000 daily. It estimates HR 1 impact to be anywhere from $4 million to $6 million annually, with close to $100 million over the next decade.
It also lost $3.6 million on a year-to-date basis, with one-time adjustments like a $10.8 million grant received in June.
In March, the hospital shared that it started 2026 on solid financial ground after “significant loss” in 2025. It also was searching for a health system partner in December 2025, and was in talks with Chicago-based CommonSpirit Health, Sacramento, Calif.-based Sutter Health and San Francisco-based UCSF Health.
“Our primary objective is to take the necessary measures to maintain the hospital’s viability to serve the community,” Tim Moran, interim CEO of Watsonville Community Hospital, said in a Sept. 24 statement shared with Becker’s. “This was an informational meeting. No decisions were proposed or made.”
The hospital’s board will continue the discussion at its Sept. 30 meeting.
