NorthBay Health is in negotiations with Providence Health to buy Napa’s Queen of the Valley Medical Center and its related assets, both health systems confirmed Thursday.
Both organizations released statements touting their desire to continue Queen of the Valley’s stellar legacy.
Calling the effort part of Providence’s “broader-systemwide transformation” on how care in Napa will move forward in the future, Providence issued a statement saying, “These discussions have led us to exclusive conversations with NorthBay Health to transition ownership of Queen of the Valley Medical Center and related assets in Napa County to NorthBay Health. We have entered into a Letter of Intent, which is the first step in this process. Pending a definitive agreement and regulatory approval, we anticipate this transition will occur by the end of 2026.”
No details of the deal, including potential sales price, were released, but Providence said it believes NorthBay Health is the right organization for the purchase.
“NorthBay Health is a California-owned, locally governed, and community-based health system, and we are confident it is the right organization to shepherd The Queen into its next chapter. Many steps remain in the process. Our focus right now is uninterrupted patient care and supporting our caregivers and the community through this potential transition.”
Providence Queen of the Valley Medical Center, in Napa, could be purchased by NorthBay Health. The two health organizations are in discussions on a possible sale of the facility. (Chris Riley/The Reporter)
NorthBay Health President and CEO Mark Behl said NorthBay’s goal is simple: “to ensure that the people of Napa continue to have access to exceptional, compassionate care from a health system that is committed to this region for the long term.”
He praised the Napa hospital, as well.
“Queen of the Valley has a remarkable legacy of caring for the Napa community, and we have deep respect for the physicians, caregivers, and teams who have carried that mission forward for generations,” he said. “For decades, families in Napa have relied on Queen of the Valley not only for high-quality care, but also for compassion, stability, and a deep commitment to the community. That legacy matters, and it deserves to be honored and strengthened.”
Talks about a potential sale of the hospital have swirled in recent weeks as Providence, based in Renton, Washington, is in the midst of an estimated $2 billion financial turnaround plan.
In January, trade magazine Modern Healthcare reported the organization was “considering selling” some of its hospitals.
“We have 51 hospitals, most of which have No. 1 market share in their communities, but we do have a handful that we may have to find a different purpose or different sponsors for,” Chief Financial Officer Greg Hoffman told attendees during a presentation at the J.P. Morgan Healthcare Conference in San Francisco, the Magazine reported.
Providence currently includes an estimated 120,000 employees, 51 hospitals, and more than 1,000 clinics in Alaska, California, Montana, New Mexico, Oregon, Texas and Washington state.
Behl said in his statement that NorthBay has a commitment to being rooted in the communities it serves.
Our experience serving Solano County has shown us that when healthcare systems are deeply rooted in their communities, they can respond quickly, thoughtfully, and meaningfully to what patients and families need most,” he said. “We understand the importance of preserving local access to care, supporting physicians, nurses, and team members and ensuring that hospitals remain strong, stable resources for the communities that depend on them.”
NorthBay Medical Center (Chris Riley/The Reporter)
He added, “That same philosophy is what we believe we can bring to the Napa community. Our focus would be on strengthening what already exists — supporting the teams who serve patients every day, investing in the programs and services the community relies on, and ensuring that local healthcare continues to thrive.”
He did not address what impact the sale would have on unionized employees at Queen of the Valley. They are represented by the California Nurses Association (CNA) for registered nurses, and other staff are represented by the National Union of Healthcare Workers (NUHW), which also represents workers at other Northern California Providence locations.
NorthBay, on the other hand, is a non-union healthcare organization.
Generally, most courts have held that if a nonunion employer buys the assets of the unionized organization and retains a majority (50% plus 1) of the previous staff, the buyer is deemed a “successor employer.” The buyer is not bound by the old contract’s specific terms but must recognize the union and bargain in good faith to reach a new agreement.
For its part, NorthBay Health already has some outpatient services in Napa, including urology and podiatry offices. And many orthopedic doctors who regularly practice at NorthBay also provide care at Queen of the Valley.
The nonprofit launched a $250 million ambulatory network strategy in 2024, aiming to open 10 clinics to provide care closer to home for patients by 2030. It currently has clinics open in Vacaville, Fairfield, Dixon, Rio Vista, American Canyon, and Winters.
Last fall in an interview with Becker’s Hospital Review, Behl discussed growth and how the company was preparing for financial challenges and reimbursement pressures under the Trump Administration’s “One Big Beautiful Bill.”
“We’re modeling out over the next five years what we think the impact would be to us and putting that target for us as an organization,” he told the magazine. “We’re going to have to transform our way through it. We simply cannot just maintain the status quo and assume that someone’s going to come in and bail us out, so to speak.”
When the Winters clinic opened, Behl said, “Our growth throughout the North Bay region is a direct response to what we’ve heard from the community – a call for timely, expert health services close to home and work.”
In his statement on Thursday, Behl noted the rapidly evolving healthcare landscape and said opportunities like the potential purchase of the Napa hospital “call for long-term vision and commitment. Our goal is to help ensure that healthcare in Napa continues to grow stronger — expanding access to high-quality services, advancing innovation, and building a system that will serve this community for generations to come.”
NorthBay was founded in 1959 and operates two hospitals in Solano County: NorthBay Health Medical Center in Fairfield and NorthBay Health VacaValley Hospital in Vacaville, with about 204 beds combined and some 2,500 employees. Its trauma unit in Fairfield was recently designated a Level II center for the county.
Queen of the Valley Medical Center was founded in 1958 and has just under 200 beds and about 1,200 employees. It is a Level III trauma center.
In addition, Queen of the Valley is Catholic-affiliated, while NorthBay Health is not faith-based.