Sonoma Valley Hospital eyes budget cuts

As Sebastopol’s Palm Drive Hospital goes belly-up this week, hospital leaders in Sonoma are sifting through their own budget priorities amid a turbulent health care environment.

“The same dynamics that put a hole in Palm Drive are being felt by hospitals all over. And we’re no different,” said Peter Hohorst, a member of the Sonoma Valley Health Care District board of directors.

“We’re seeing the same loss of revenue that they are,” said Hohorst, who is treasurer of the five-member board. “So what we’re working on is a plan to make sure we’re financially sustainable through next year.”

That plan comes in many phases, and in a sense begins with the strategic plan – which sets out the hospital’s strategic priorities for the coming year – to be discussed by Sonoma Valley Hospital leadership during the regular board meeting this Thursday.

Later in the month, on May 20, hospital leaders plan to hold a study session to preview the coming year’s budget. The district board typically ratifies the budget in June.

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