Originally incorporated in 1902, Watsonville Community Hospital has been an indispensable part of life in the Pajaro Valley for more than a century. The Hospital evolved through several ownership structures over the years, including a non-profit hospital. After suffering substantial damage in the 1989 Loma Prieta earthquake, the Hospital moved into a new building at its current location on Airport Boulevard. With construction financed by federal and state grants made available through its non-profit status as well as robust community fund raising efforts, the move allowed the Hospital to continue to grow and meet the with the increasing needs of an evolving community.

In 1998, the Hospital was sold to a private entity and the proceeds placed into a Trust (Community Health Trust of Pajaro Valley). This began two more than two decades of for-profit corporate operations, which included significant ownership and administrative turnover. In January 2022, amid the ongoing COVID-19 pandemic, Watsonville Community Hospital filed for bankruptcy.

Local partners and community members support Watsonville Community Hospital and recognize the valuable role it plays in the supporting the health and vitality of the Pajaro Valley. The PVHCD Board assures that the Hospital is financially sustainable and meets the health care needs of the community.