Petaluma Valley Hospital and Family Birthing Center Update
IMAGE: PRESS DEMOCRAT
In January 2021, Healthy Petaluma completed the sale of Petaluma Valley Hospital (PVH) to NorCal HealthConnect, a secular subsidiary of Providence. The purchase agreement, which was approved by the community in the November 2020 election, mandates that Providence maintain PVH as an acute care hospital with emergency services for a minimum of 20 years. An exception was made for the Family Birthing Center (FBC), which was required to be maintained for a minimum of five years following the sale.
Family Birthing Center Closure
In 2023, Providence announced the closure of the FBC, effective May 1, 2023, citing challenges related to anesthesia and OB-GYN physician coverage. Providence indicated plans to transition OB-GYN services to Santa Rosa Memorial Hospital.
The unilateral closure of the FBC by Providence violated the purchase agreement, which stipulated that the hospital operator must obtain approval from the Healthy Petaluma board prior to closing the FBC by December 31, 2025. The FBC closed on May 1, 2023, without the required board approval.
Resolution and Agreement
Following extensive negotiations, Providence and Healthy Petaluma reached an agreement. Instead of reopening the FBC, Providence provided a one-time payment of $10 million to Healthy Petaluma. These funds are dedicated to women’s health, behavioral health, and other community needs. Additionally, Providence committed to providing annual funding through 2030 to support community health needs in southern Sonoma County. Healthy Petaluma staff have joint decision-making authority regarding the investment of these funds.
Providence will ensure the continued availability of antepartum and postpartum services within the community, either directly or through community partnerships.
Ongoing Partnership
Healthy Petaluma and Providence remain committed to a collaborative partnership to ensure local access to high-quality acute care hospital services, including emergency care, to enhance community health outcomes.
