Watsonville Community Hospital recently announced that CEO Stephen Gray is stepping down in July.
The announcement came within days after the hospital was just awarded $10.6 million in grant money from the state, provided though the Distressed Hospital Loan Program, legislation recently championed by Sen. John Laird and quickly passed.
Stephen Gray
Gray has led the Watsonville Community Hospital since November 2023. During his tenure, WCH has made significant progress in the face of ongoing financial challenges, according to hospital leadership.
“Steve’s commitment as the hospital’s CEO has bettered the lives of patients, staff and the larger Pajaro Valley community,” Pajaro Valley Health Care District Board Member Marcus Pimentel said. “Steve’s leadership was critical during the transition to a community-owned hospital, when we lacked systems and support. We’re grateful that Steve believed in our hospital.”
Gray managed the implementation of the hospital’s first strategic plan since public ownership. He also oversaw the Measure N general obligation bond measure, approved by voters in 2024 to provide funding to purchase, then modernize and expand the hospital. Also under Gray’s oversight, the hospital has established primary care services on campus.
More recently, the hospital’s financial position has improved significantly, with operations now generating positive revenue and more than $10 million in emergency state funding awarded.
Assembly Bill 108, signed into law in May, provides grants to public and nonprofit hospitals that meet several criteria, including having less than 10 days of cash on hand and having more than half of their patients on government-funded insurance programs or uninsured. The law was designed for Watsonville Community Hospital, with just one or two others that could have qualified.
An interim CEO will lead WCH beginning in July. The search for a permanent CEO will take place in Fall 2026.
Watsonville Community Hospital serves the Pajaro Valley and surrounding communities in Santa Cruz County and northern Monterey County, providing a full range of inpatient and outpatient services. The hospital is governed by the Pajaro Valley Health Care District, a local public agency whose board is elected by the community.