Watsonville Hospital's emergency department is one of the places the Measure N revenue will go toward. (Tarmo Hannula/Pajaronian file)

Pajaro Valley Healthcare District—the public agency tasked with running Watsonville Community Hospital—announced Wednesday that they 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 came during a closed-session discussion, and as such little additional information was available Thursday.

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. 

The purchase will save the hospital $3 million in annual rental payments.

“It’s a watershed moment for our community,” Board Chair Tony Nuñez told the Pajaronian. “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,” Nuñez said.

The purchase from Alabama-based Medical Properties Trust (MPT) will be finalized before the end of the calendar year. The hospital board is expected to ratify the decision on Friday morning in closed session.

The hospital was locally owned from its founding in 1895. That changed in 1998, when an out-of-town corporation called Community Health Systems (CHS) 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 (MPT), and leased it from them in a sale/leaseback arrangement.

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General assignment reporter, covering nearly every beat. I specialize in feature stories, but equally skilled in hard and spot news. Pajaronian/Good Times/Press Banner reporter honored by CSBA. https://pajaronian.com/r-p-reporter-honored-by-csba/

1 COMMENT

  1. John

    The Real Person!

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    The Real Person!

    Author John acts as a real person and verified as not a bot.
    Passed all tests against spam bots. Anti-Spam by CleanTalk.

    SOS taxpayers pay for healthcare. How long before the hospital goes bankrupt again or ask for more money

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