District to miss June vote on Petaluma hospital

The Petaluma Health Care District board on Friday decided to postpone submitting a ballot measure for the new Petaluma Valley Hospital lease.

The district earlier had signaled an intent to set a public vote on June 6 to ratify the operating agreement with Paladin Healthcare, the district’s preferred choice to take over the hospital from St. Joseph Health. March 10 was the deadline to submit a measure for the June ballot.

PHCD Board President Elece Hempel said the district needed more time to finalize the lease agreement with Paladin.

“This process is very complex,” she said in a statement. “Paladin and St. Joseph need time to discuss and agree upon the terms of an operations transfer agreement that will ensure a smooth transition of hospital operations. Our expectation is that all parties – the District, Paladin and St. Joseph – will work expeditiously to reach the necessary agreements, and we will submit the new lease for a public vote at such time.”

She said that St. Joseph would continue to operate the hospital until the transition to Paladin occurs.

The district announced last month that Paladin had been selected as the top bidder to run the hospital. Pipeline Health and KPC Group also submitted bids. The district has entered into a non-binding letter of intent with Paladin that sets forth the key terms of a lease agreement, the statement said.