Watsonville Community Hospital faces potential maternity service closures

Watsonville Community Hospital is considering the permanent closure of its maternity and newborn services to avoid a total facility shutdown. Due to ongoing financial difficulties, the hospital's board may decide as early as October 28 whether to close the labor and delivery unit and the neonatal intensive care unit (NICU).

Interim CEO Tim Moran stated that significant changes must occur by April 1 to ensure the hospital's long-term viability. The NICU has already been temporarily closed since July due to staffing issues. If these services are lost, it would impact nearly one-third of all births in Santa Cruz County.

While the community previously raised approximately $65.5 million in 2022 and approved a $116 million bond (Measure N) in March 2024 to purchase the hospital property, leadership has clarified that these funds are dedicated to capital improvements and property rather than ongoing staffing and operational expenses.