Pajaro Valley Healthcare District Project, a nonprofit formed to save Watsonville (Calif.) Community Hospital, has weeks to come up with millions of dollars to purchase the facility out of bankruptcy, according to KSBW.
Watsonville Community Hospital is at risk of closing after years of financial struggles. In December 2021, the hospital and its parent company, Halsen Healthcare, filed for Chapter 11 bankruptcy. Documents filed in the case said the goal of the bankruptcy filing included keeping the hospital open, saving about 650 jobs and selling the hospital to a buyer that can support the healthcare needs of the community.
Hospital leaders said in the bankruptcy documents they negotiated a tentative agreement with the Pajaro Valley Healthcare District Project, and the nonprofit group agreed to act as the stalking horse purchaser of the hospital. The group, made up of the County of Santa Cruz, the City of Watsonville, Community Health Trust of Pajaro Valley and Salud Para La Gente, was formed to explore the purchase of the hospital.
However, the nonprofit still needs to raise at least $64.4 million to acquire the hospital, according to Lookout Santa Cruz. It has brought in about $12 million so far, including $5 million from Santa Cruz County. It is still hoping other community partners will contribute funds so it can have a sale agreement by the end of March.
Monterey County Supervisors and other health systems in the area are looking at providing some funding toward the purchase, according to KSBW.