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Federal cuts put Watsonville Community Hospital at risk. Partnership is the way forward.

Watsonville Community Hospital reflects the growing fragility of Santa Cruz County’s health care system, strained by rising costs, workforce shortages and declining reimbursements. Despite real progress since becoming community-owned in 2022, Stephen Gray, the hospital’s CEO, writes that new federal Medicaid cuts are projected to cost the hospital up to $10 million annually, threatening local access to care. Measure N has funded critical facilit…
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Lookout Local Santa Cruz broke the news in on Sunday, February 1, 2026.
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