The Petaluma Health Care District board approved a letter of intent to sell Petaluma (Calif.) Valley Hospital to an affiliate of Renton, Wash.-based Providence St. Joseph Health, according to local newspaper Petaluma360.
The approval sends the hospital sale to Petaluma voters.
If approved by voters, the 80-bed facility would be sold to NorCal HealthConnect, an affiliate of Providence St. Joseph Health, for $52.6 million.
Under the deal, NorCal HealthConnect would continue operating the Bay Area hospital as an acute care facility with an emergency department for at least 20 years.
The Petaluma Health Care District has been looking for a long-term operator for Petaluma Valley Hospital for more than four years. Ramona Faith, CEO of the health care district, said the process has been "complex" and at times, "challenging."
"We had focused on securing a long-term lease, but this option didn’t secure the best terms for our hospital or our residents," Ms. Faith said in a July statement proposing the sale.
Another subsidiary of Providence St. Joseph Health has operated Petaluma hospital on an interim basis since its 20-year lease expired in 2017, according to Petaluma360. The district wanted to extend the lease, but negotiations ended over financial terms and a noncompete clause.