Providence reaches deal with nonprofit to transfer Napa's Queen of the Valley hospital

Hospital giant Providence has signed an agreement to transfer ownership of Napa's Queen of the Valley Medical Center to Solano County-based NorthBay Health, the parties announced Thursday, April 9.

Terms of the deal have not been made public.

The announcement came about a month after Providence disclosed it was in talks with NorthBayHealth to unload Napa County's largest hospital.

Queen of the Valley Medical Center is a general acute care facility licensed for 198 beds. It has net inpatient revenue of $138 million and $204 million in net outpatient revenue, according to the latest data from the California Department of Health Care Access Information. After factoring in operating expenses, the hospital recorded a $5 million loss in 2023-24.

About 1,000 caregivers and staff work at the hospital.

The turnover comes amid an unsettled time in the nation's health care sector as Medicaid reimbursement cuts enacted last year in President Donald Trump's tax and spending bill, along with other business trends, have pushed many facilities to the brink.

Washington-based Providence operates more than 50 hospitals across seven western states. It signaled the transfer was part of a longer term strategy geared to investing "our resources where we can do the greatest good."

NorthBay Health, in business for 67 years, operates hospitals in Fairfield and Vacaville.

NorthBay Health President and CEO Mark Behl called the transfer agreement an "important step toward expanding access, strengthening clinical services, and ensuring more people in the region benefit from high-quality, locally connected care."

Here's some of what we know about the deal and the parties involved in the transaction:

* On March 5, Providence announced in a memo to staff that it had entered into a letter of intent to transfer ownership of the hospital and related assets to NorthBay Health.

* Both Providence and NorthBay Health declined on Friday to reveal any details about the transaction, including whether it was a sale (and if so, for how much) or an exchange of assets.

* Providence and NorthBay, in press statements, said their "definitive agreement" marked a milestone in the process to transition the hospital to new ownership. Both sides said the deal was now entering the regulatory review phase.

* Providence spokesman Steven Buck said in an email, "Our organizations have not yet submitted the application for review to the state. The documents are still being prepared.

For Providence, the move follows a recent series of cuts, including elimination of its labor and delivery unit at Petaluma Valley Hospital and the closure of its inpatient pediatric unit at Santa Rosa Memorial Hospital.

Providence said in March that there were "no active discussions" involving the transfer or sale of any of its other Northern California hospitals.

In addition to Queen of the Valley, Petaluma Valley and Santa Rosa Memorial, Providence also operates Healdsburg Hospital.

You can reach Staff Writer Martin Espinoza at 707-521-5213 or martin.espinoza@pressdemocrat.com.

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This story was originally published April 13, 2026 at 9:52 AM.