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


Upcoming Meetings


Board of Directors Meetings | More info


Reports and Presentations


Read Measure CC Ballot Language (PDF)


Resolution: Ratifying the Approval of APA & Transfer Documents


Resolution: Approving Lease Surrender & Transfer Agreements



Asset Purchase Agreement

Lease Surrender & Transfer Agreement

From 10/21: Draft APA


APA Overview: PresentationSlides (PDF)


Resolution: Approving Proposed Term Sheet for Sale


Proposal Overview: Presentation | Slides (PDF)


Fair Market Value Executive Summary Report (PDF)


Educational Outreach: Mailer 1 | Mailer 2



Key Informant and Focus Group Summary Report

PHCD Request for Proposals

2016 Property Condition Report

Petaluma Valley Hospital Retrospective - Wayne Fairchild


Due Diligence News


October 29, 2020

Petaluma Health Care District Approved Definitive Sale Agreement for Petaluma Valley Hospital


August 6, 2020

Petaluma Health Care District Recommends Petaluma Valley Hospital Sale to NorCal HealthConnect, LLC


July 28, 2020

Health officials propose selling Petaluma Valley Hospital


February 20, 2020

Secular operator proposed for Petaluma hospital


October 31, 2019

CA Attorney General rejects Adventist - St. Joseph Health merger


December 11, 2018

Letter of Intent Signed


February 21, 2018

PVH Transition Update


January 4, 2018

Resolutions for PVH in 2018


August 17, 2017

Petaluma hospital transfer further delayed


June 15, 2017

Hospital transition underway


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