Irvine, Calif.-based St. Joseph Health and the Petaluma Health Care District, which owns Petaluma (Calif.) Valley Hospital, are ending their 20-year operating agreement. The district will begin searching for another party to manage operations at PVH, according to the Argus Courier.
St. Joseph officials agreed to continue operating the hospital until Sept. 1, 2017, or until the district reaches an agreement with another hospital authority.
St. Joseph's lease on the hospital was set to expire in January. Negotiation troubles surfaced in August after the two entities failed to reach an agreement to put before voters on the November ballot. District voters must ratify the agreement in order for a new hospital operator to take control of Petaluma Valley Hospital.
St. Joseph Health spokesperson Vanessa DeGier attributed the contract termination to various reasons, including the structure of the lease payment and complexities regarding the specific birthing procedures allowed and not allowed by the Catholic health organization, according to the article.
Petaluma Health Care District CEO Ramona Faith said the district will reopen its requests for proposals and begin searching for a new hospital operator. In addition to St. Joseph, Sacramento, Calif.-based Sutter Health, Ontario, Calif.-based Prime Healthcare Services and Riverside, Calif.-based Strategic Global Management previously expressed interest in operating Petaluma Valley, according to the article.