Watsonville hospital faces possible closure as it loses $86,000 a day

WATSONVILLE, Calif. —

Watsonville Community Hospital is losing $86,000 daily and has only five days of cash reserves left, putting its future in jeopardy and forcing consideration of drastic service cuts.

“This is a reality, right? And we can't hide it. And if we do try to hide it, then, you know, it's we're not going to be left with any sort of decisions, right? We're going to be left with closure,” said Tony Nunez, Board Chair with the Pajaro Valley Healthcare District.

At the meeting, hospital leaders outlined the potential permanent closure of the neonatal intensive care unit, which has been effectively shut down since July.

“I haven't been able to staff it around the clock to meet state standards,” said Interim CEO Tim Moran.

Labor and delivery services may also be eliminated, which would force expectant mothers to travel farther for care.

“We don't have the ability to just drive over to Santa Cruz. We don't have that ability to get there in a reasonable amount of time either, depending on traffic,” Nora Yerena, director of the Raíces y Cariño Center.

Moran emphasized the importance of keeping the emergency department operational, as it is heavily used and generates approximately $40,000 daily.

“They do not want to close labor delivery. They value the importance of it to the community. They understand it, but they also have an obligation to the community to keep the hospital alive. Thirty-five thousand patients a year come to the emergency room with very serious conditions, many of them. If we risk that, in my opinion, it would be a disaster for the community,” Moran said.

To address the hospital’s financial challenges, the health care district plans to apply for a $26 million grant as a temporary solution to buy more time to stabilize its finances.

The district is asking for community input at its next board of directors meeting, scheduled for next Wednesday at 5 p.m. across the street from the hospital.