By PK Hattis | [email protected] | Santa Cruz SentinelPUBLISHED: November 1, 2024 at 3:04 PM PDT
WATSONVILLE — Watsonville Community Hospital and the Pajaro Valley Health Care District announced another major step Friday in their mission to keep the bedrock South County institution in community hands.
The district has officially acquired the hospital buildings and the 27 acres of land they sit on for $40 million, according to a joint release from the district and hospital.
The buildings and land were purchased from Alabama-based Medical Properties Trust, a real estate investment trust that acquires and leases hospital facilities, and was made possible by Measure N, which was passed by district voters in March. The $116 million bond initiative, which sought to raise enough money to purchase the hospital and complete other facility improvements, cleared the necessary two-thirds majority vote threshold with 9,926 votes in favor, or 68%, and 4,553 votes against, or 31%.
“We are incredibly grateful to everyone who supported Measure N, and especially to the voters of the health care district for believing in their local hospital,” Stephen Gray, CEO of the Pajaro Valley Health Care District and Watsonville Community Hospital, said in a release. “The completion of this property transaction is the final milestone in our journey back to being truly community owned.”
Though the purchase came with a high price tag, hospital leaders have said it will save large sums of money in the long run, as the hospital will no longer spend $3 million each year on lease and insurance payments. It will instead reinvest those dollars back into service improvements.
The expanded ownership move is the latest development in a years-long effort to stabilize the hospital’s finances after bringing it back from the brink of collapse only two years ago. The previous for-profit owners of the hospital, Halsen Healthcare, declared bankruptcy in late 2021, raising the very real specter of irrevocable dissolution for the 126-year-old health care institution.
Instead, the bankruptcy news kickstarted what local officials called “the largest community fundraising campaign in the history of Santa Cruz County,” that brought in about $65.5 million in less than six months from more than 450 donors. The money was used to cover bankruptcy fees, hospital deficits and operations as well as initial working capital, but came up short of purchasing the buildings and land. In conjunction with the fundraising effort, emergency legislation to create the health care district was fast-tracked through the state Capitol and ultimately allowed the now nonprofit hospital to be returned to public ownership and oversight.
“This day means so much to so many people who have rolled up their sleeves to do what was needed to ensure access to healthcare services for the Pajaro Valley,” added Gray. “Our hospital has provided quality healthcare since 1895, and thanks to the collaborative efforts of our community, we are looking ahead to 2025, when we will launch our cardiac catheterization lab and continue to look for ways to improve the health of the people we serve.”
Watsonville Community Hospital has 106 acute care beds and offers a range of medical and surgical services including cardiac care, diagnostic imaging, emergency services, maternity services, orthopedics, pediatrics, rehabilitation services, robotic surgery, urology, vascular surgery, women’s health services and wound care. It has 650 employees, more than 300 physicians and is one of only two hospitals in Santa Cruz County.
Santa Cruz Sentinel, Front Page: https://www.santacruzsentinel.com/2024/11/01/pajaro-valley-health-care-district-purchases-watsonville-community-hospital-buildings-land/