BOARD LETTER TO THE COMMUNITY – JUNE 2026
Dear Sonoma Valley Community,
June brings national attention to several important health observances, including Men’s Health Month, Men’s Mental Health Awareness Month, and Alzheimer’s and Brain Awareness Month. Together, these observances encourage conversations about prevention, early detection, mental well-being, and the importance of maintaining brain health throughout our lives.
While these observances are recognized nationally, they also reflect conversations taking place throughout our own community. Earlier this spring, the Women’s Health Symposium brought together physicians and community members to explore topics including brain health, aging, and wellness. As we move into June, those conversations continue, reminding us that staying healthy often begins with awareness, education, and regular preventive care.
Physician Clinics Annual Report
Dawn Kuwahara, RN, Chief Ancillary Officer, presented the annual report for Sonoma Valley Hospital’s 1206(b) Physician Clinics, which include Family Practice, General Surgery, and Internal Medicine, and provide care to approximately 4,600 members of our community.
Together, the clinics are staffed by 4.5 physicians, two nurse practitioners, and 12 employees. Dawn reported that clinic quality measures remain strong and continue to exceed the average performance of other participating organizations within the Merit-Based Incentive Payment System.
Dawn also shared that a 1206(b) Clinic Committee has been established to address future opportunities and challenges, including provider recruitment, space needs, aging equipment, and potential service expansion. The committee is currently developing a charter to help guide this important work.
Board Governance and Strategic Planning
The Board approved the formation of an ad hoc CEO Compensation Committee, comprised of Directors Kittleson and Lee-Myatt, for the limited purpose of conducting the annual CEO performance evaluation process and developing recommendations regarding CEO compensation.
The Board approved the formation of an ad hoc UCSF Strategic Initiatives Committee, comprised of Directors Case and Lee-Myatt. The committee will participate in discussions related to UCSF-affiliated strategic initiatives and service line opportunities. The committee is advisory only and does not have decision-making or contracting authority.
The Board also approved Resolution 399, initiating the process for the November 3, 2026 General Election, during which two Sonoma Valley Health Care District Board seats will be on the ballot. Community members interested in serving are encouraged to contact the Sonoma County Registrar of Voters regarding nomination materials and requirements. Candidates must reside and be registered to vote within the District. The nomination period opens July 13 and closes August 7, 2026.
Fiscal Year 2027 Budget Approved
SVH Chief Financial Officer Ben Armfield presented the Fiscal Year 2027 budget, which was approved by the Board.
Ben shared that the proposed budget is designed to preserve and build upon the positive operational and financial momentum achieved during FY26 while continuing the hospital’s transition from stabilization toward long-term sustainability.
The FY27 budget is built around four key priorities:
- Sustaining Positive Momentum by continuing to improve operational and financial performance while preserving the gains achieved during FY26.
- Building Financial Flexibility and Cash Reserves by strengthening liquidity and the hospital’s ability to manage future reimbursement and operational volatility.
- Funding Critical Capital and Infrastructure Needs by continuing to address deferred infrastructure, equipment, cybersecurity, and facility capital investments without compromising long-term financial flexibility.
- Supporting Strategic, Targeted Growth through continued investment in services such as MRI and imaging, physical therapy, surgery, orthopedics, and emergency medicine.
While uncertainty remains across the broader healthcare landscape, particularly regarding future reimbursement and supplemental funding programs, hospital leadership believes Sonoma Valley Hospital is well positioned to continue moving forward from a position of growing strength and stability.
East Air Handler Replacement Project
Ben Armfield also presented an update on the East Wing Air Handler Replacement Project. The project is intended to replace a failed air handling unit, restore mechanical redundancy within the East Wing, and reduce operational risks associated with aging HVAC infrastructure.
Following the public bidding process, the Board reviewed bids submitted by contractors and voted to reject the current bids and reissue the project.
Chief Executive Officer Report
Sonoma Valley Hospital Chief Executive Officer Kelley Kaiser reported that the hospital continues on a positive trajectory both operationally and financially.
Rising patient volumes, revenues exceeding budget expectations, controlled expenses, and improving cash reserves have all contributed to growing organizational stability and position the hospital well as it enters the new fiscal year.
Kelley also shared that Sonoma Valley Hospital has successfully recruited a new Chief Nursing Officer, who will join the organization in July.
In addition, Kelley reviewed results from the hospital’s annual Employee Engagement Survey. Overall employee satisfaction increased from 4.29 to 4.39 out of 5. Leaders throughout the organization will review department-specific results with their teams and develop action plans focused on continuing improvements in employee engagement and workplace culture.
Chief Medical Officer Report
Chief Medical Officer Dr. Patrick Okolo provided an update on quality and patient care initiatives. Dr. Okolo reported that Sonoma Valley Hospital recently completed its triennial CIHQ accreditation survey. He shared that all identified deficiencies were non-condition level findings and are expected to be relatively straightforward to address. A comprehensive corrective action plan has been submitted and implementation is underway.
Dr. Okolo also highlighted continued progress in sepsis care performance. Compliance with the SEP-1 sepsis bundle reached 88.9 percent during the first quarter of 2026, including 100 percent compliance in January and February. While April results reflected a temporary decline related to CMS reporting requirements, sepsis performance remains an area of active focus and continued improvement.
Patient experience results also continue to demonstrate organizational strengths. Q1 2026 Press Ganey results showed strong performance in physician communication, nurse listening, and ambulatory surgery patient satisfaction. Opportunities for improvement remain in discharge preparation and patient education, areas where ongoing work is already underway.
Financial Performance
SVH Chief Financial Officer Ben Armfield also presented the April financial report.
April marked the hospital’s second consecutive month of positive operating performance, continuing the strong momentum established in March. The hospital generated an operating margin of approximately $226,000, exceeding budget expectations, while Operating EBDA totaled approximately $571,000.
Strong inpatient utilization, healthy outpatient volumes, continued surgical recovery, and another record-setting month for MRI services all contributed to the positive results.
Following April’s performance, Sonoma Valley Hospital remains slightly positive year-to-date and continues making meaningful progress toward long-term financial sustainability.
Quality Committee Update
Director Kittleson provided the first quarter 2026 Quality Committee update. The committee regularly reviews a broad range of quality and patient safety measures, including mortality, Age-Friendly Health System initiatives, Social Determinants of Health screenings, patient safety indicators, falls, stroke care, infection prevention, and utilization management.
Overall, first quarter results demonstrated strong performance across many key quality measures. Mortality rates remained below target benchmarks, patient safety indicators continued to perform favorably, and Age-Friendly Health System and Social Determinants of Health measures met or exceeded established goals. Areas of ongoing improvement include stroke measure compliance, fall prevention, and continued efforts to enhance quality outcomes across the organization.
Closing
Before our next Board meeting on July 8, Sonoma Valley will join communities across the nation in celebrating Independence Day, our nation’s 250th anniversary, and Sonoma County’s 187th birthday under the theme “250 Years of the Red, White, and Blue.”
As neighbors, families, businesses, organizations, and visitors come together to celebrate, we encourage everyone to do so safely while recognizing the physicians, nurses, staff, volunteers, and caregivers who serve our community every day.
On behalf of the Board, thank you for your continued support of Sonoma Valley Hospital. Together, we are strengthening healthcare close to home and helping build a healthier future for Sonoma Valley.
Warm regards,
Wendy Lee Myatt
Chair, Sonoma Valley Health Care District Board