Watsonville Community Hospital
75 Nielson Street
Watsonville, CA 95076
Date of Public Notice: 10/29/2026
Proposed Effective Date of Service Elimination: 02/26/2027
Pursuant to California Health and Safety Code § 1255.25, Watsonville Community Hospital is providing public notice of the proposed elimination of its Perinatal Unit and associated obstetric and neonatal services, including Labor and Delivery, antepartum services, postpartum/mother-baby care, routine newborn services, and Level II/III Intermediate Intensive Care Nursery (IICN) services, effective no earlier than 02/26/2027.
Description of the Proposed Elimination of Services
Watsonville Community Hospital proposes to eliminate its Perinatal Unit and the following associated services:
- Services proposed for elimination: Labor and Delivery, antepartum services, postpartum/mother-baby care, routine newborn services, and Level II/III Intermediate Intensive Care Nursery (IICN) services
- Number of licensed/staffed beds affected:
- 10 Level 2/3 IICN Beds
- 18 Perinatal Beds
- Probable decrease in personnel: The proposed elimination of perinatal services is anticipated to result in a reduction of approximately 75 positions. This estimate reflects the anticipated staffing impact associated with the closure of Labor and Delivery, antepartum services, postpartum/mother-baby care, newborn services, and the Intermediate Intensive Care Nursery (IICN). The final number of affected positions may vary based on staffing needs, employee reassignment opportunities, and operational considerations.
- Summary of services being eliminated: The proposed closure of the Perinatal Unit will result in the elimination of inpatient obstetric and neonatal services currently provided by the hospital. Services that will no longer be available include Labor and Delivery services, antepartum inpatient services, postpartum and mother-baby care, routine newborn services, and Level II/III Intermediate Intensive Care Nursery (IICN) services.
Following the closure, the hospital will no longer provide planned labor and delivery or inpatient perinatal and neonatal care. Patients presenting to the Emergency Department with pregnancy-related concerns, including those requiring obstetric evaluation or triage, will continue to receive an appropriate medical screening examination, evaluation, stabilization, and emergency care consistent with the hospital’s capabilities. Patients requiring labor and delivery, inpatient obstetric, or neonatal services that are no longer available at the hospital will be transferred to an appropriate facility when clinically indicated and appropriate.
Three Nearest Available Comparable Services
The three nearest healthcare facilities providing comparable perinatal services are:
- Dignity Health – Dominican Hospital
1555 Soquel Drive
Santa Cruz, CA 95065
Phone: 831-462-7700
Approximate distance from Watsonville Community Hospital: 12.4 Miles
Serves Medi-Cal patients: Yes
Serves Medicare patients: Yes - Salinas Valley Memorial Hospital
450 E. Romie Lane
Salinas, CA 93901
Phone: 831-757-4333
Approximate distance from Watsonville Community Hospital: 23.6 Miles
Serves Medi-Cal patients: Yes
Serves Medicare patients: Yes - Natividad
1441 Constitution Blvd
Salinas, CA 93906
Phone: 831-755-4111
Approximate distance from Watsonville Community Hospital: 24 Miles
Serves Medi-Cal patients: Yes
Serves Medicare patients: Yes
Patient Population and Services Provided During the Previous Five Years
The following information represents statistically deidentified and aggregated data regarding patients who received perinatal services at Watsonville Community Hospital during the five years preceding this notice.
Conditions treated:
Ethnicities of patients served:
Ages of patients served:
Newborn to 48 years of age.
Patient insurance/payor information:
Justification for the Proposed Elimination of Services
Watsonville Community Hospital is proposing the elimination of its Perinatal Unit for the following reasons:
Hospitals throughout California are facing significant and rapidly changing financial pressures resulting from changes in federal and state health care funding, increasing costs of providing care, workforce shortages, and reimbursement that has not kept pace with the cost of maintaining essential hospital services. These pressures are particularly significant for hospitals that serve large Medi-Cal and safety-net populations.
These challenges have a direct impact on Santa Cruz County. More than 82,000 Santa Cruz County residents rely on Medi-Cal for their health care, and approximately 43% of births in the county are covered by Medi-Cal. Recent changes in federal health care funding are expected to significantly reduce health care resources available within Santa Cruz County and place additional financial pressure on local health care providers.
At the same time, demand for hospital-based maternity services has declined. California experienced a 24% decrease in births between 2009 and 2023. Santa Cruz County has experienced a similar trend. The County reported 3,170 births to Santa Cruz County residents in 2010, compared with 2,233 in 2021, representing an approximately 30% decline. More recent County data continue to demonstrate a significantly decreasing birth-rate trend.
These broader challenges are compounded by the specific financial and operational challenges of maintaining perinatal services at Watsonville Community Hospital. The hospital’s Perinatal Unit, which includes Labor and Delivery, antepartum care, postpartum/mother-baby care, newborn services, and Level II/III Intermediate Intensive Care Nursery services, requires specialized clinical staff and resources to be continuously available regardless of the number of patients receiving care.
Watsonville Community Hospital has experienced persistent difficulty recruiting and maintaining the specialized nursing workforce necessary to safely staff these services. Maintaining the staffing, clinical resources, equipment, and infrastructure necessary to provide these services 24 hours a day, seven days a week, despite declining birth volumes, has resulted in a significant and unsustainable financial burden on the hospital.
Watsonville Community Hospital and the Pajaro Valley Health Care District have a responsibility to evaluate how limited financial and workforce resources can be used most effectively to preserve access to hospital care for the community as a whole. After evaluating utilization, staffing requirements, workforce availability, operating costs, reimbursement, and the hospital’s overall financial condition, the continued operation of the Perinatal Unit in its current form was determined to be financially and operationally unsustainable.
The proposed elimination of perinatal services is intended to strengthen the long-term financial stability of Watsonville Community Hospital and preserve the hospital’s ability to continue providing essential services to the community, including emergency care, inpatient medical and surgical care, critical care, cardiac services, diagnostic services, and other hospital-based services.
Watsonville Community Hospital recognizes the importance of maternity and neonatal services to patients and families and understands that the elimination of these services will affect the community. The hospital is committed to working with patients, physicians, emergency medical services, neighboring hospitals, community organizations, and other health care partners to support safe transitions of care and continued access to maternity and neonatal services within the region.
Public Comment
Interested members of the public and other interested parties are invited to submit comments regarding the proposed elimination of perinatal services.
Watsonville Community Hospital
75 Nielson Street
Watsonville, CA 95076
Telephone: 831-724-4741
Email: [email protected]
Pajaro Valley Health Care District
75 Nielson Street
Watsonville, CA 95076
Telephone: 831-724-4741
Email: https://www.pvhcd.org/about-district/page/contact-us
Chief Executive Officer
Tim Moran (Interim)
Watsonville Community Hospital
75 Nielson Street
Watsonville, CA 95076
Telephone: 831-763-6040
Email: [email protected]
Public Hearing
Watsonville Community Hospital will conduct at least one public hearing regarding the proposed elimination of perinatal services within 60 days of providing this public notice.
Public Hearing Date: December 16, 2026
In-Person Location: 85 Nielson Street, Watsonville, CA 95076
Written public comments may be submitted in advance of the hearing using the contact information provided above. Members of the public will also have an opportunity to provide comments during the hearing, both in person and remotely.
Additional information regarding the public hearing, including the hearing agenda and instructions for remote participation, will be posted with this notice and on the Watsonville Community Hospital website. https://www.pvhcd.org/meetings
This notice is provided pursuant to California Health and Safety Code § 1255.25.