FOR IMMEDIATE RELEASE
June 1, 2026
Contact: Jennifer Murray 831-515-2802
Watsonville Community Hospital CEO to Depart
Interim leader will take the helm during search for permanent replacement
WATSONVILLE, CA, June 1, 2026 — Watsonville Community Hospital (WCH) today announced CEO Stephen Gray is stepping down, effective July 10, 2026. The Board of the Pajaro Valley Health Care District, the public healthcare district that owns the hospital, has begun a process to identify an interim CEO to manage the hospital, to be followed by a thorough search to hire a permanent CEO.
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 driven primarily by decisions at the federal level.
“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 following a grant application process. WCH also received top marks on an industry safety rating for patient safety and care earlier this year.
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.
About the Pajaro Valley Health Care District
The Pajaro Valley Health Care District is a public healthcare district formed to ensure continued access to high-quality, equitable healthcare for the Pajaro Valley community. Established in 2022 to help preserve and strengthen local hospital services, the District oversees Watsonville Community Hospital and is governed by a publicly elected five-member board committed to supporting sustainable operations, expanding access to care, and improving community health outcomes. For more information, pvhcd.org.
About Watsonville Community Hospital
Watsonville Community Hospital is a public, non-profit community healthcare provider; a 106- bed acute care facility serving Watsonville and the surrounding culturally diverse tri-county area along California’s Central Coast. The hospital offers a wide range of quality medical and surgical services including cardiac care, diagnostic imaging, emergency services, maternity services, orthopedics, pediatrics, rehabilitation services, robotic surgery, urology, vascular surgery, women’s health services, and wound care. With 650 employees and more than 300 physicians, the hospital strives to exceed patient expectations, deliver the highest quality care, and be a place of healing, caring and connection for patients and families in the community we call home.