'California hospital property returns to community ownership'

 Watsonville (Calif.) Community Hospital's property has been returned to the Pajaro Valley Health Care District.

Residents of Pajaro Valley Health Care District passed Measure N in a March 2024 election, enabling the hospital property transaction to occur. Measure N bonds helped make the property payment possible, according to a Nov. 1 news release shared with Becker's. 

Birmingham, Ala.-based Medical Properties Trust, a healthcare real estate company, sold the 27-acre property for $40 million to Halsen Healthcare, who had owned it from 2019 to 2021. Halsen Healthcare sought Chapter 11 protection in December 2021, which nearly closed the hospital.

However, Santa Cruz and Pajaro Valley residents raised funds to cover legal fees, hospital debt and hospital operations, according to the release. The campaign also provided some working capital to relaunch the facility as a community-owned, nonprofit operation. 

The funding and emergency legislation, CA Senate Bill 418, prevented the closure of the 106-bed acute care hospital and established public ownership and oversight of the now nonprofit hospital through the district.

In 2022, Pajaro Valley Health Care District purchased the hospital's operations but lacked resources to purchase the land and associated buildings. 

Now that the district has purchased the property, Watsonville Community Hospital will save more than $3 million annually in insurance and lease payments, which will be invested back into healthcare services for the community. 

https://www.beckershospitalreview.com/hospital-transactions-and-valuation/california-hospital-property-returns-to-community-ownership.html