The past three years have been transformative for Watsonville Community Hospital, which was facing bankruptcy in late 2021 before a local group banded together to save it.
Now under local ownership—and more importantly, back under local control—the hospital has seen a sea change in its finances.
After a $30 million loss in 2022, its deficit was reduced to $13 million in 2023, and in 2024, the hospital exceeded expectations, posting a loss of just $800,000.
That was the message Friday from WCH CEO Stephen Gray during WCH’s first state-of-the-hospital presentation in the community room of the Watsonville Civic Plaza.
“Our hospital belongs to this community, and everything we do is guided by that principle,” Gray said. “These past two years have shown what’s possible when local voices lead the way. We’re proud of the progress we’ve made, and we’re just getting started.”
Among the hospital’s recent successes is Nourish—a free food pantry launched in partnership with Second Harvest Food Bank located inside the hospital—which Gray said is the first of its kind in California.
Watsonville Community Hospital Board Chair Tony Nuñez thanked voters for passing Measure N, a $116 million bond measure approved by voters in 2024.
Hospital officials used $40 million of that money to purchase the hospital property—finalizing the sale in October—returning it to permanent community ownership and saving $3 million annually in lease payments.
Upcoming projects include new imaging equipment such as a CT scanner and an MRI machine, as well as a cardiac catheterization lab.
In addition, the design phase for an expanded Emergency Department is ongoing, and is expected to last through December 2026.
Plans also include expanding the hospital’s palliative care and strengthening its cancer care services.
