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, a video and slide presentation outlining the definitive agreements, presented at the October 21st PHCD Board of Directors Meeting, as well as a copy of the proposed term sheet and the asset purchase agreement and disclosure schedules.
↓ Download the presentation slides (PDF)
Agreement Documents
Read the asset purchase agreement and disclosure schedules, the lease surrender and transfer agreement, and the resolution of the PHCD Board of Directors approving the lease surrender and transfer agreement and related transaction documents.
↓ Asset Purchase Agreement and Disclosure Schedules (FINAL)
↓ Lease Surrender & Transfer Agreement (FINAL)
↓ Resolution for Approving Lease Surrender & Transfer Agreement
10/21/2020: Draft APA & Disclosure Schedules
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 Form; or
2. Email us at pvh@phcd.org. 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.
October 21 Board Meeting: Overview of Definitive Agreements
July 22 Special Board Meeting: Overview of Proposal
July 30 Special Board Meeting: Overview of Proposal
August 4 Special Board Meeting: Approval of Resolution and Ballot Language
August 6 Special Board Meeting: Formal Approval of Resolution and Ballot Language
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
Reports and Presentations
Read Measure CC Ballot Language (PDF)
Resolution: Ratifying the Approval of APA & Transfer Documents
Resolution: Approving Lease Surrender & Transfer Agreements
Agreements:
Lease Surrender & Transfer Agreement
From 10/21: Draft APA
APA Overview: Presentation | Slides (PDF)
Resolution: Approving Proposed Term Sheet for Sale
Proposal Overview: Presentation | Slides (PDF)
Fair Market Value Executive Summary Report (PDF)
Educational Outreach: Mailer 1 | Mailer 2
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Key Informant and Focus Group Summary Report
PHCD Request for Proposals
2016 Property Condition Report
Petaluma Valley Hospital Retrospective - Wayne Fairchild
Due Diligence News
October 29, 2020
Petaluma Health Care District Approved Definitive Sale Agreement for Petaluma Valley Hospital
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
February 21, 2018
January 4, 2018
August 17, 2017
Petaluma hospital transfer further delayed
June 15, 2017
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