The board of directors for Pajaro Valley Health Care District, which owns Watsonville (Calif.) Community Hospital’s property, voted Aug. 27 to find an outside healthcare provider to take over the hospital’s daily management, The Pajaronian reported Aug. 28.
The decision comes amid a series of financial concerns regarding the recently passed One Big Beautiful Bill Act and a late 2024 cyberattack on Watsonville Community, leaving hospital leadership concerned about whether the facility will have the means to stay operational.
“It’s really bleak,” PVHCD Board Chair Tony Nuñez, told the publication. “We’re talking anywhere on an annual basis of losing from $3.5–$7 million each year in revenue [beginning in 2026].”
A two-member ad hoc committee has been established by the district’s board to look into potential partnerships with Sacramento-based Sutter Health and Chicago-based CommonSpirit Health, along with other interested organizations, the Pajaronian reported.
Watsonville Community’s property was returned to Pajaro Valley Health Care District in November 2024, after district residents passed Measure N in a March 2024 election allowing the transaction to occur.
The hospital lost $30 million in 2021, nearly closing and declaring bankruptcy before the district purchased the hospital’s operations in 2022. However, the district didn’t have enough resources to buy its land and associated buildings.
Becker’s has reached out to PVHCD and Watsonville Community Hospital for comment and will update this story should more information become available.
