Pajaro Valley Healthcare District Project

About Pajaro Valley Healthcare District Project

This not-for-profit 501(c)(3) was created to advocate for community-led healthcare services by forming a health care district and purchasing Watsonville Community Hospital to transition it to community ownership and governance.

Pajaro Valley Healthcare District Project's mission is "to ensure the communities we serve have the high quality and sustainable healthcare services they need by placing local healthcare resources in the hands of the people."

PVHDP Board of Directors includes leadership representing Santa Cruz County, the City of Watsonville, Community Health Trust of Pajaro Valley, and Salud Para La Gente.

Watsonville Community Hospital Files Bankruptcy

Watsonville Community Hospital filed for Chapter 11 bankruptcy on December 6, 2021. In preparation for the February 22, 2022 auction to purchase the hospital, PVHDP finalized an Asset Sale Agreement with Watsonville Community Hospital and is now positioned to be approved by the bankruptcy court as the lead bidder to purchase the hospital.

PVHDP and many community partners and healthcare stakeholders want to make sure the hospital stays open to provide this important community with quality healthcare services.

First Step — Create a Healthcare District

In order to form a healthcare district and acquire Watsonville Community Hospital, urgency legislation — Senate Bill 418 — was brought forward by State Senator Laird and coauthored by California State Assembly members Robert Rivas, Mark Stone, and Senator Anna Caballero. The bill was passed unanimously by the Assembly and Senate, and on Friday, February 4, 2022, Governor Gavin Newsom signed the legislation into law. With his signature, the Pajaro Valley Healthcare District is now established.

This powerful proclamation of confidence affirms the state's stance on the importance of the population that resides and works in the Pajaro Valley and the role Watsonville Community Hospital plays in their health and wellbeing. This is a resounding mandate to realize the transition of ownership and transformation of Watsonville Community Hospital to the community.