Forging a New Path for Petaluma Valley Hospital

PHCD owns Petaluma Valley Hospital (PVH) and is currently negotiating a definitive agreement to transition and lease the hospital’s operations to Paladin Healthcare. Its current lessee, St. Joseph Health, has agreed to continue to operate PVH to give the District time to reach an agreement with Paladin.


District, Paladin and St. Joseph are currently discussing and developing agreed-upon terms of an operations transfer agreement. Our expectation is that all parties – the District, Paladin and St. Joseph – will work expeditiously to reach the necessary agreements, at which time we will submit the new lease for a public vote.

For more information on the due diligence process PHCD undertook to select its new long-term operation, please click here.


PHCD’s Board of Directors and CEO are committed to helping the community stay up-to-date on the process and engaged in our progress.



Petaluma Valley Hospital Operations Transition Updates

These updates are aimed at providing information and an official perspective to all Petaluma Valley Hospital (PVH) medical staff, employees and volunteers on the work being undertaken by all three parties involved in this transaction. It is the expectation of the District that all three parties and their representatives make themselves available for important meetings and calls to keep the momentum and accomplish our common goal of a smooth transition. Please do not hesitate to contact Ramona Faith if you receive any information that is contrary to these communications or if you have concerns.


To review all of our updates, please visit our blog.


LATEST UPDATE: August 11, 2017

The Petaluma Health Care District continues to work on Petaluma Valley Hospital’s (PVH) transition plans and agreements, the success of which is dependent upon the active participation and collaboration of our current operator, St. Joseph Health, and our recommended operator, Paladin. We face several challenges that are complicating and slowing the process.


As communicated previously, we are endeavoring to ensure that St. Joseph Health fulfills its legal obligation to return a viable, functioning hospital to the District so that we can then lease hospital operations to a new operator.


As a result of St. Joseph Health’s decision years ago to make PVH’s Information Technology platform part of a remote, regional system, a new independent system must be built and paid for before hospital operations may be transferred. Based on an analysis of the existing system and extensive communication with the existing system’s vendors, development of a new platform will take from eight to 12 months from the date final agreements are signed. The new platform will be similar to what exists at PVH now, to ensure familiarity for and continuity with staff. As you can imagine, this process is both highly complex and expensive. All parties will contribute financing to the system build-out through different methods.


Another time and effort-intensive aspect of the PVH transition is the need for interconnected and complementary agreements that formally document and guide St. Joseph Health’s surrender of operations and Paladin’s assumption of hospital operations. In addition, the terms of Paladin’s lease of the hospital facility and operations of the hospital over the term of the lease must be completed. Adjustments to one agreement with St. Joseph Health or Paladin often necessitates adjustments in a different agreement with the other, a somewhat painstaking process that is mired in small details.


This combination of factors has slowed us down and significantly delayed the date on which Paladin is able to assume the operation of PVH. In the interim, St. Joseph Health has agreed for now to continue to operate PVH to ensure that Southern Sonoma County will not experience any disruption in hospital services. We are anxious to get our next operator settled at PVH.


We are not able to put a measure on the November ballot because the parties have not yet agreed to all of the material terms of the transaction agreements. The Board continues to work tirelessly to achieve signed agreements as soon as possible. A smooth transition of our community hospital without any patient disruption remains our ultimate goal.



Reports and Presentations

Key Informant and Focus Group Summary Report

PHCD Request for Proposals

2016 Property Condition Report

Petaluma Valley Hospital Retrospective - Wayne Fairchild

Due Diligence News


April 13, 2017

Petaluma Health Care District in Focus


March 15, 2017
Letter to the Editor: Hospital changes

March 15, 2017
Paladin, St. Joseph work through Petaluma Hospital transfer agreement

March 10, 2017
Vote for New Petaluma Valley Hospital Lease Deferred

March 2, 2017
Poll: Paladin right choice to run PV hospital

February 26, 2017
Petaluma Valley Hospital's new manager Paladin Healthcare known for turnarounds but facility is healthy

February 17, 2017
Petaluma Health Care District Moves Forward With Paladin Healthcare as Recommended Operator for Petaluma Valley Hospital 

February 6, 2017
Three Operators Vying for Petaluma Valley Hospital

January 30, 2017
Petaluma Valley Hospital Contract Gets Bidding Interest

January 26, 2017
Early Interest in Petaluma Hospital Contract

November 13, 2016
Petaluma Health Care District Plans New Hospital Process

October 20, 2016
Details emerge in hospital talks

October 6, 2016
Petaluma Patch - Petaluma Health Care District and St. Joseph Health End Lease Negotiations for Petaluma Valley Hospital

October 5, 2016
Petaluma Health Care District and St. Joseph Health End Lease Negotiations for Petaluma Valley Hospital

October 5, 2016
Petaluma Argus Courier - St. Joseph Out as Petaluma Valley Hospital Operator

October 5, 2016
North Bay Business Journal - St. Joseph Health, Petaluma Health Care District End Hospital Negotiations

April 28, 2016
St. Joseph top bid for PVH

January 22, 2016
St. Joe's, Prime Healthcare bid to operate Hospital

January 19, 2016
Petaluma Health Care District Set to Review Two Lease Options for Petaluma Valley Hospital

January 5, 2016
Petaluma Valley Hospital's future up for discussion

December 3, 2015
Petaluma Hospital Bids Coming Into Focus

November 10, 2015
Petaluma Health Care District Seeks Public Input on Priorities for Selection of Pe taluma Valley Hospital Operator

October 20, 2015
Petaluma Health Care District Moves Due Diligence Process Forward
Announces four potential operators at Petaluma Valley Hospital

September 24, 2015
Multiple bids for Petaluma hospital 

September 24, 2015
Important health decision