California hospital CEO estimates contract renegotiations will add $12M in revenue

After declaring bankruptcy last year, Watsonville Community Hospital became publicly funded in August and is expected to unveil a new three- to five-year strategic business plan next year, according to the Santa Cruz Sentinel.

 

The Pajaro Valley Healthcare District Project raised $65.5 million from 450 individual donors to acquire the hospital, which employs around 600 people and serves a population with about 80 percent of patients on Medicare or Medi-Cal.

The hospital reported a $22 million loss in 2021 and around $23 million in 2022, partially due to bankruptcy costs. However, CEO Steven Salyer said he is renegotiating contracts to boost reimbursement rates up to parity, which could add $12 million revenue to the hospital this year.

Mr. Salyer also said the hospital plans to expand its interventional cardiology and vascular surgery capabilities and establish a 21-bed inpatient behavioral health unit.

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