Watsonville Community Hospital could soon be owned by the Pajaro Valley Healthcare District. PVHD announced a plan to purchase the building and surrounding property, a major milestone in a years-long endeavor to return the facility to public ownership.
The unanimous decision was announced Sept. 27 after a closed-session discussion. The $40 million purchase came thanks to Measure N—the $116 million general obligation bond passed in March by voters in the district, which includes Monterey and Santa Cruz counties and stretches from Aptos to northern Monterey County.
It will also pay for upgrades to the emergency department and heating and cooling systems, among other things.
The purchase will save the hospital $3 million in annual rental payments.
“It’s a watershed moment for our community,” Board Chair Tony Nuñez said. “This was the will of the voters; this is what they approved back in March.
“When this goes through, it is going to be a huge moment for our community and everyone who depends on Watsonville Community Hospital for health care,” he said.
The purchase from Alabama-based Medical Properties Trust will be finalized before the end of the calendar year.
The hospital was locally owned from its founding in 1895. That changed in 1998, when an out-of-town corporation called Community Health Systems bought it, and later created a spinoff company called Quorum Health Corporation in 2016. That company sold the hospital to Los Angeles-based Halsen Healthcare in 2019.
Halsen sold the building and grounds to Alabama-based Medical Properties Trust, and leased it from them in a sale/leaseback arrangement.
