California Today

Watsonville Hospital Gets $10.6M State Bailout

29 May 2026 16:20

Watsonville Community Hospital has received $10.6 million in emergency state funding to address severe financial distress. The hospital had only 6-8 days of cash on hand and 85% of patients rely on Medi-Cal.

- The grant comes from Assembly Bill 108, which allocated nearly $25 million for struggling hospitals. - Three other California hospitals also received funding: Palo Verde Hospital ($3M), El Centro Regional Medical Center ($11M), and Southern Inyo Healthcare District ($400K).

- Hospital management is resuming the search for an external partner after a potential alliance fell through. The funding aims to stabilize the hospital and prevent closure, allowing it to pay suppliers and cover operational needs.

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El CentroWatsonvillehealthmoneypoliticsInyo CountySanta Cruz CountyMoney