Federal cuts put Watsonville Community Hospital at risk. Partnership is the way forward.

Watsonville Community Hospital reflects the growing fragility of Santa Cruz County’s health care system, strained by rising costs, workforce shortages and declining reimbursements. Despite real progress since becoming community-owned in 2022, Stephen Gray, the hospital’s CEO, writes that new federal Medicaid cuts are projected to cost the hospital up to $10 million annually, threatening local access to care. Measure N has funded critical facility upgrades, he writes, but state law prevents those dollars from covering staffing or service losses caused by federal cuts. To protect and expand health care services, the Pajaro Valley Health Care District is now actively seeking a strategic operating partner to ensure long-term stability. He insists the hospital will work to preserve local oversight.

Healing together: How health care districts can transform care

Taking care of our health is one of the most important things in life. But for many in Watsonville and the Pajaro Valley, getting the care and support they need has not always been easy. That’s why the Pajaro Valley Health Care District (PVHCD) was created—to ensure everyone in our community has access to quality health care, regardless of background or situation.