After asserting to workers in November the hospital could suspend its operations if it didn’t find a buyer resulting from monetary challenges, Watsonville Group Hospital CEO Steven Salyer introduced Friday that the hospital reached a preliminary settlement with a neighborhood nonprofit, the Pajaro Valley Healthcare District Challenge, for its buy.
“We’re excited to have reached a preliminary settlement with the PVHDP for the acquisition of the hospital’s operations and to have funding to proceed the life-saving work of offering care to our neighborhood,” Salyer mentioned in a launch.
The hospital holds 106 beds and employs greater than 620 workers and 200 physicians, in accordance with its web site. Earlier Friday, nurses on the facility held a information convention demanding that the hospital keep open.
When requested for remark, Roseann Faris — a nurse on the hospital and its California Nurses Affiliation union consultant — mentioned she hadn’t seen the information in regards to the preliminary settlement. On the time of publication, Faris mentioned she had not but obtained approval to talk additional.
The hospital plans to file a movement asking a chapter court docket to approve the district because the purchaser. Utilizing the Chapter 11 course of, the court docket would want to approve the sale of the hospital’s operations by an public sale, in accordance with the discharge.
In the mean time, Medical Properties Belief owns the land and the buildings that make up the hospital, however it has been managed by Prospect Medical Holdings since January.
Mimi Corridor, CEO and president of the group in search of to buy the hospital, mentioned there’s nonetheless work to be finished earlier than they attain a remaining settlement, however at least, an “imminent closure” was averted.
“It is a framework that enables us to hunt essential legislative and monetary help to finish the acquisition and renew the hospital underneath public stewardship,” mentioned Corridor, within the launch. “We stay up for working with our state and native elected officers and our companions who’re devoted to advancing neighborhood possession of the hospital.”
Made up of the county of Santa Cruz, town of Watsonville, Salud Para La Gente and the Group Well being Belief of Pajaro Valley, the nonprofit integrated this summer season, in accordance with Corridor. The undertaking is within the strategy of formalizing as an official well being care district — which is analogous to a water district however targeted on a neighborhood’s healthcare wants.
Whereas the undertaking is the entity buying the hospital, the hope is that after the healthcare district is fashioned it might switch possession to the district.
“Our undertaking might attain an settlement with the present house owners for a hospital sale…it might occur earlier than a district is fashioned, it might occur after a district is fashioned,” mentioned Corridor. “What we might do is switch possession to the eventual well being care district.”
The district would have a board of elected members who make selections on behalf of the constituents to run the hospital.
The hospital expects to request a listening to from the chapter court docket to contemplate the sale in February 2022, in accordance with the discharge. Within the meantime, hospital officers say they’ve obtained sufficient funding to proceed operations whereas the sale is processed or by the top of March 2022.
