California Hospital May Close Maternity Unit Over Medi-Cal Losses
Watsonville Community Hospital in California is weighing suspension of its labor and delivery unit and NICU after a financial analysis found the services lose about $27,000 a day, with the hospital down to roughly eight days of cash on hand. The Pajaro Valley Health Care District board will discuss the issue at its October 28 meeting; no decision has been made, and any closure would require 120 days' notice to the state. Interim CEO Tim Moran cited declining Medi-Cal reimbursements, worsening through 2028, that he attributes to federal H.R. 1 eligibility changes shifting the hospital's payer mix toward lower government reimbursement and more uninsured patients. If units close, patients would be referred to Dominican Hospital, Natividad Medical Center, and Sutter Maternity & Surgery Center for continued obstetric and NICU care.