Renton, Wash.-based Providence has agreed to pay $12.3 million to support women's health, behavioral health and community benefit services in Southern Sonoma County instead of reopening the family birthing center at its Petaluma (Calif.) Valley Hospital.
The investment is part of an amendment to the asset purchase agreement between the Healthy Petaluma District and Providence. With this amendment, approved on June 26, Providence is no longer obligated to maintain the birthing center for the remainder of its five-year commitment, according to a joint news release.
Providence, as part of the asset purchase agreement governing the sale of the hospital, had committed to maintain the birthing center through 2025. The health system temporarily closed the birthing center May 1, 2023, citing a shortage of anesthesiologists and obstetricians.
The Healthy Petaluma board partnered with Providence to explore options for reopening the unit. However, the operating model they identified to allow the reopening "led both parties to conclude that while the family birthing center could be reopened, the unit would not offer the same physician staffing coverage or provide comparable continuity of care to its patients as was available prior to the suspension," the release said.
Ultimately, Providence agreed to invest $9.9 million to support women's health and behavioral health services in Southern Sonoma County, according to the release. The health system also agreed to work with the Healthy Petaluma Board to increase its investment in the Community Benefit Program by $2.4 million through 2030.
"This historic investment agreement underscores our commitment to the City of Petaluma and southern Sonoma County," Garry Olney, DNP, RN, chief executive for Providence Northern California, said in the release. "We look forward to continuing to partner with the Healthy Petaluma Board of Directors to identify ways in which we can support programs that have a substantial positive impact on our community."