Sonoma Valley Hospital starts $20M capital campaign for outpatient center

The Sonoma Valley Hospital Foundation plans a $20 million capital campaign to fund a new outpatient diagnostic center for Sonoma Valley Hospital, which has undergone significant changes this year as it continues to reinvent itself.

The plan calls for repurposing vacant space left by the old emergency room and surgery department, along with adjacent space to build a 20,000-square-foot diagnostic hub, according to Dave Pier, executive director of the foundation. Plans include a new CT scanner and MRI, updated ultrasound and X-ray equipment, and updated space and equipment for the hospital's cardiology and laboratory services.

The foundation's campaign goal is to raise at least $20 million for the project; so far it has secured $14 million in financial commitments from private donors and foundations. The foundation is now seeking funding support from the broader community, according to Simon Blattner, campaign chair of the foundation.

'This is a critical project for the hospital that creates operational efficiencies, increases revenue and strengthens the position of SVH as a viable independent hospital able to meet the needs of our community for years to come,' said Kelly Mather, CEO.

Current projections for the new diagnostic center show an increased net revenue of $1.5 million annually, she said. Part of the new revenue would result from physicians no longer having to refer patients elsewhere for advanced diagnostic care. And another portion would come from SVH's affiliation with UCSF, which plans to use the new facility, Mather said.

'We will break ground on the first project (CT scanner) in the summer of 2019, and expect it to be complete by the end of the year,' Mather said. 'We will break ground on the second project (MRI) once we have raised enough funds, but expect to do so in early 2020.'

The hospital experienced extensive cost-cutting moves this year, including closing its obstetrics department and transferring its hospice care to UCSF-affiliate Hospice by the Bay. The future of its skilled nursing facility is under evaluation.

Staff Writer Cheryl Sarfaty covers tourism, hospitality, health care and education. Reach her at cheryl.sarfaty@busjrnl.com or 707-521-4259.