Forging a New Path for Petaluma Valley Hospital

We have been working to secure a long-term operator for Petaluma Valley Hospital over the last four years. It has been a complex, and, at times, a challenging process. We had focused on securing a long-term lease, but this option didn’t secure the best terms for our hospital or our residents. Community hospitals right around us and around the country have been struggling to remain full-service hospitals and some have closed service lines, been acquired, or closed all together. Regardless, we have been steadfast on finding a solid future for our hospital.


We now have a proposal for NorCal HealthConnect, LLC, a secular affiliate of Providence St. Joseph Health (PSJH), to purchase Petaluma Valley Hospital and assure that it will provide the emergency and acute care services this community needs well into the future.


Before explaining the background to this proposed sale, it’s important that everyone know how this sale would benefit our community:


  • NorCal HealthConnect would commit to continue operating the hospital as an acute care hospital with an emergency department for a minimum of 20 years. This helps ensure a quality hospital in Petaluma for at least the next two decades.
  • NorCal HealthConnect would continue providing all current hospital services. In this era when many community hospitals are closing obstetrics services, the District further secured a commitment to maintain The Family Birthing Center for a minimum of 5 years.
  • As the owner and new operator, NorCal HealthConnect would assume responsibility for deferred and ongoing maintenance, capital expenditures and seismic compliance.
  • At a sale price of $52.6 million, the community would have a substantial corpus of funds from the sale to invest in programs supporting our region’s most challenging community health priorities such as: health equity, education, mental and behavioral health, senior wellness, homelessness and housing. The District plans to undertake an in-depth process to develop a community involved strategic plan for investing in services and programs to improve health in southern Sonoma County. We will do our work in collaboration with our nonprofits, health, business and community leaders, and with input from our residents.
  • The District would continue representing the community’s voice through a representative on the Petaluma Valley Hospital board for ten (10) years, so long as the board exists, as well as have representation on its quality and community benefit committees.


Learn More About the Proposal

Community discussion is critical, especially since the sale cannot take place without voter approval on the November 3 general election. In August, the Petaluma Health Care District held a series of public forums to discuss the proposal and answer the community's questions. Videos of each of those forums are listed below. In addiition, below is a longer video and slide presentation outlining the proposal, presented at our July 22nd Petaluma Health Care District Board of Directors Meeting, as well as a copy of the proposed term sheet. 


Community Forums & Presentation Overview of Proposed Sale

Wednesday, August 19 | Watch Video Recording of Aug 19 Forum

Saturday, August 22 | Watch Video Recording of Aug 22 Forum

Tuesday, August 25 | Watch Video Recording of Aug 25 Forum

Friday, August 28 | Watch Video Recording of Aug 28 Forum



Download presentation slides (PDF)


Proposed Term Sheet for Sale

Read the resolution for approving the proposed term sheet for the sale of Petaluma Valley Hospital


↓ Resolution for Approving Proposed Term Sheet for Sale


Have a Question?

Please see our Q&A on some commonly asked questions regarding the sale


If you cannot find an answer to your question or have an additional question, please submit your question using one of the following options

1. Submit a question via our online form: Question Submission Formor

2. Email us at Please include your question, name and contact information, and add "Community Question re: Petaluma Valley Hospital" in the subject line.

3. Call us at (707) 285-2143 x136 and leave a voicemail with your question, name and contact information including email.  



PHCD Board of Directors Meetings & Public Comment

Please see below to view recordings of public PHCD Board of Directors Meetings discussing the proposed sale.


July 22 Special Board Meeting: Overview of Proposal

Video Recording | Agenda


July 30 Special Board Meeting: Overview of Proposal

Video Recording | Agenda


August 4 Special Board Meeting: Approval of Resolution and Ballot Language

Video Recording | Agenda


August 6 Special Board Meeting: Formal Approval of Resolution and Ballot Language

Video Recording | Agenda


Learn more about upcoming board meetings


Background on the Petaluma Valley Hospital Operations

For the past 74 years, Petaluma Valley Hospital has been a community-owned District hospital. Since 1997, our hospital has been operated through a 20-year lease agreement with SRM Alliance Hospital Services, a subsidiary of Providence St. Joseph Health.


Knowing that the 20-year lease would expire in 2017, and needing to guarantee continuing operations by the hospital, in 2015, the District began exploring new lease or sale arrangements. The District worked diligently to promptly explore all viable options to secure an operator. While this process has taken over four years, it is important to note that hospital services continued throughout this process through our ongoing work with SRM Alliance Hospital Services. The proposed sale of Petaluma Valley Hospital to NorCal HealthConnect, we believe after our extensive exploration and negotiation, is in the best interests of the communities served by the District.


For more information on the due diligence process PHCD undertook to select its new long-term operation, please click here.


PHCD’s Board of Directors and CEO are committed to helping the community stay up-to-date on the process and engaged in our progress.


Upcoming Meetings


Board of Directors Meetings | More info

Regular Meeting: Wednesday, Sept 16, 5:00pm 


Reports and Presentations


Resolution: Approving Proposed Term Sheet for Sale


Proposal Overview: Presentation | Slides (PDF)


Fair Market Value Executive Summary Report (PDF)



Key Informant and Focus Group Summary Report

PHCD Request for Proposals

2016 Property Condition Report

Petaluma Valley Hospital Retrospective - Wayne Fairchild


Due Diligence News


August 6, 2020

Petaluma Health Care District Recommends Petaluma Valley Hospital Sale to NorCal HealthConnect, LLC


July 28, 2020

Health officials propose selling Petaluma Valley Hospital


February 20, 2020

Secular operator proposed for Petaluma hospital


October 31, 2019

CA Attorney General rejects Adventist - St. Joseph Health merger


December 11, 2018

Letter of Intent Signed


February 21, 2018

PVH Transition Update


January 4, 2018

Resolutions for PVH in 2018


August 17, 2017

Petaluma hospital transfer further delayed


June 15, 2017

Hospital transition underway


April 13, 2017

Petaluma Health Care District in Focus


March 15, 2017
Letter to the Editor: Hospital changes

March 15, 2017
Paladin, St. Joseph work through Petaluma Hospital transfer agreement

March 10, 2017
Vote for New Petaluma Valley Hospital Lease Deferred

March 2, 2017
Poll: Paladin right choice to run PV hospital

February 26, 2017
Petaluma Valley Hospital's new manager Paladin Healthcare known for turnarounds but facility is healthy

February 17, 2017
Petaluma Health Care District Moves Forward With Paladin Healthcare as Recommended Operator for Petaluma Valley Hospital 

February 6, 2017
Three Operators Vying for Petaluma Valley Hospital

January 30, 2017
Petaluma Valley Hospital Contract Gets Bidding Interest

January 26, 2017
Early Interest in Petaluma Hospital Contract

November 13, 2016
Petaluma Health Care District Plans New Hospital Process

October 20, 2016
Details emerge in hospital talks

October 6, 2016
Petaluma Patch - Petaluma Health Care District and St. Joseph Health End Lease Negotiations for Petaluma Valley Hospital

October 5, 2016
Petaluma Health Care District and St. Joseph Health End Lease Negotiations for Petaluma Valley Hospital

October 5, 2016
Petaluma Argus Courier - St. Joseph Out as Petaluma Valley Hospital Operator

October 5, 2016
North Bay Business Journal - St. Joseph Health, Petaluma Health Care District End Hospital Negotiations

April 28, 2016
St. Joseph top bid for PVH

January 22, 2016
St. Joe's, Prime Healthcare bid to operate Hospital

January 19, 2016
Petaluma Health Care District Set to Review Two Lease Options for Petaluma Valley Hospital

January 5, 2016
Petaluma Valley Hospital's future up for discussion

December 3, 2015
Petaluma Hospital Bids Coming Into Focus

November 10, 2015
Petaluma Health Care District Seeks Public Input on Priorities for Selection of Pe taluma Valley Hospital Operator

October 20, 2015
Petaluma Health Care District Moves Due Diligence Process Forward
Announces four potential operators at Petaluma Valley Hospital

September 24, 2015
Multiple bids for Petaluma hospital 

September 24, 2015
Important health decision