Watsonville Hospital Begins 120-Day Notice to Close Maternity, NICU
Watsonville Community Hospital's board voted Oct. 28 to begin a required 120-day public notice process for potentially closing its labor and delivery and neonatal intensive care unit, though no closure decision has been made. The California hospital has about eight days of cash on hand and faces an $85,000 daily cash shortfall before supplemental government payments, with maternity and NICU services projected to lose $9.6 million in fiscal 2026. Upcoming federal Medi-Cal changes are expected to add further financial strain. During the notice period, the hospital will pursue funding, including a pending application for up to $26 million through California's Distressed Hospital Grant Program, and seek support from Kaiser Permanente and the California Nurses Association.