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Process to acquire Queen of the Valley Hospital now moves to regulatory review
NorthBay Health is one step closer to taking over Queen of the Valley Medical Center in Napa — a move leaders say could shape the future of local health care for years to come.
NorthBay Health and Providence have signed a final agreement to transfer ownership of Queen of the Valley Medical Center and related Napa County assets from Providence to NorthBay, the organizations announced Thursday. The deal now moves into a regulatory review process.
The agreement follows last month’s announcement that the two systems had entered into a letter of intent and shows a stronger commitment to shifting the hospital and its outpatient clinics to local control, officials from both organizations said. If approved by the state and other regulators, the transition is expected to be completed by the end of 2026.
Neither organization revealed the financial terms of the deal.
“As Providence pursues its 2030 strategic direction, we recognize that we must focus our resources where we can do the greatest good,” said Laureen Driscoll, Chief Executive, Providence South Division. “We are confident that NorthBay Health is the right organization to build on The Queen’s legacy and continue the commitment to exceptional care for the Napa community. This milestone marks another important step in the process to thoughtfully transition The Queen to NorthBay Health.”
NorthBay Health President and CEO Mark Behl called the agreement an “important step toward expanding access, strengthening clinical services, and ensuring more people in the region benefit from high-quality, locally connected care.”
He touted NorthBay’s locally owned and governed system, saying the organization is “proud to build on Queen of the Valley Medical Center’s long-standing legacy of care.”
Providence leaders said the decision comes as the U.S. health care system continues to change and matches its long-term plan to focus resources where it can best serve communities.
After months of review that included input from leaders and the community, Providence determined that NorthBay Health was best suited to meet Napa’s long-term health care needs.
NorthBay, which has operated in Solano County for more than 60 years, said it plans to maintain and build on the Napa hospital’s legacy while keeping care centered in the community.
As part of the deal, NorthBay Health has committed to investing in clinical services and community programs, offering jobs to current caregivers, and making sure the facility meets California’s earthquake safety standards.
The organizations have also launched a public website to share updates as the process moves forward. It can be found at advancingnapahealth.org/
“Nothing will change today. The Queen will continue to operate as part of Providence while the due diligence and regulatory processes unfold,” a frequently asked questions section on a website explains. “NorthBay Health will make several commitments, including continuing existing clinical services and community benefit programs, extending offers of employment with NorthBay Health to actively employed caregivers, working with Providence and its NorCal medical group to transition Napa clinicians to the NorthBay system, and continuing to support the foundation in its philanthropic investments in the community.”
The companies admitted that while they will work closely with all caregivers and medical staff to ensure continuity of care, they “are still determining details of the ownership transition and don’t have all the answers today.”
A press release from the companies did not address any potential change in contracts with unions that represent some employees at Queen of the Valley, including the California Nurses Association (CNA) and the National Union of Healthcare Workers (NUHW). However, in an interview with the Napa Register, Behl said NorthBay will uphold existing union agreements. “We want to have a smooth transition,” he told the paper.
NorthBay also said it will continue to support the Queen of the Valley Foundation and its fundraising work.
Leaders said patients should not see immediate changes to services, doctors or insurance coverage. Providence will continue to run the hospital during the review process, and patients can keep seeing their doctors at their current locations.
NorthBay Health also said it doesn’t have any current plans to move services out of Napa to other facilities, such as those in Fairfield, underscoring its focus on local care.
The deal would shift the hospital from Catholic ownership to a secular system. Providence said the decision to sell followed a process grounded in its mission and focused on community needs, vulnerable patients, and caregiver support.
As part of the transition, NorthBay Health plans to create a Mission Effectiveness Committee to help preserve the hospital’s culture and keep community needs front and center. Spiritual care services will still be available for patients.
With the agreement signed, the proposal now enters a regulatory review that could take several months. Providence will continue to operate the hospital until the deal is finalized.
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