Petaluma Valley Hospital: A New Chapter in Its Story

Petaluma Valley Hospital: A New Chapter in Its Story

On November 3, 2020, PHCD-area voters approved the sale of Petaluma Valley Hospital (PVH) to NorCal HealthConnect, LLC, a secular affiliate of Providence St. Joseph Health (PSJH, now known simply as Providence). PSJH had been operating the hospital under contract to PHCD since 1997. The sale closed on December 31, 2020.

Click here to view PVH’s new website.

PVH offers residents access to 24-hour emergency care, critical care, medical and surgical services, outpatient surgical services, a birthing center, respiratory therapy and occupational/physical therapy services, laboratory and radiology services, and pulmonary rehabilitation services. PVH Emergency Department treats more than 18,000 patients annually.

PHCD, which had owned the hospital since it was built in 1980, had been working for five years to secure a high-quality, long-term operator for PVH. Finding a long-term operator was essential because the economics of owning and operating community hospitals have substantially changed in recent years. Nearby community hospitals and others around the country have been struggling to remain full-service hospitals, and many have had to stop offering certain services, be acquired or be shut down altogether.

The hospital’s sale protected it and ensured that the Southern Sonoma County community will continue to enjoy the emergency and acute care services they need well into the future.

Benefits of Providence Petaluma Valley Hospital’s new ownership:

Providence/NorCal HealthConnect has committed to continue operating Providence Petaluma Valley Hospital (PPVH) as an acute care hospital, including an emergency department, for a minimum of 20 years. This ensures that Petaluma will have a quality hospital for at least the next two decades.
Providence/NorCal HealthConnect is continuing to provide all previous PVH services. This includes a commitment to maintain the Family Birthing Center for a minimum of five years — this at a time when many community hospitals are closing obstetrics services.
Providence/NorCal HealthConnect has assumed responsibility for PPVH’s deferred and ongoing maintenance, capital expenditures and seismic compliance.
With the hospital’s sale for $52.6 million, PHCD now has substantial funds to invest in programs and services to support our community’s most challenging health priorities, for example: health equity, education, mental and behavioral health, senior wellness, homelessness and housing. PHCD has begun an in-depth process to develop a community-involved strategic plan for determining how best to manage and invest funds — considering our most challenging health priorities — thoughtfully and sustainably in services and programs to improve health in Southern Sonoma County. We are collaborating with local nonprofits, health, business and community leaders, and we are counting on input from residents.
PHCD will continue representing the community’s voice through a representative on the Petaluma Valley Hospital board for 10 years (or as long as the board exists, if less than 10 years) as well as representation on PVH’s quality committee and Providence community benefit committee.

Agreement Documents:

↓ Asset Purchase Agreement and Disclosure Schedules

↓ Lease Surrender & Transfer Agreement

↓ Resolution for Approving Lease Surrender & Transfer Agreement

Additional information:

In August 2020, the PHCD held a series of public forums to discuss the proposal and answer the community's questions. Links to videos of each of those forums are listed below. Also below are:

A longer video and slide presentation outlining the sale proposal presented at the July 22, 2020, PHCD Board of Directors meeting
A video and slide presentation outlining the definitive sale agreements, presented at the October 21, 2020, PHCD Board of Directors meeting
The term sheet and the asset purchase agreement and disclosure schedules

For a detailed Q&A about the sale of PVH prior to the November 2020 election, please see our Frequently Asked Questions page