BOARD CHAIR REPORT – March 2026
March 18, 2026Leer en español
BOARD LETTER TO THE COMMUNITY – March 2026
Dear Sonoma Valley Community,
National Caregivers Day was observed on the third Friday in February, honoring the vital contributions of caregivers, both family members and professionals, who provide essential support to individuals in need, particularly older adults and those living with disabilities. While this national observance occurs once each year, caregiving is a daily commitment. The Board extends its sincere appreciation to the caregivers and community organizations whose compassion and dedication support patients and families throughout Sonoma Valley.
UCSF Affiliation Agreement
The Board approved the updated Affiliation Agreement between Sonoma Valley Hospital and UCSF Health.
Sonoma Valley Hospital first entered into a Collaboration Agreement with UCSF in 2018 to strengthen access to specialty expertise and resources for the Sonoma Valley community.
In June 2024, an Affiliation Agreement Workgroup Committee was formed to review and update the agreement. The updated agreement reflects continued shared goals and introduces a new section titled Professional, Clinical, Strategic Services, expanding opportunities for collaboration. Under this framework, the Hospital CEO, in coordination with the Joint Operating Committee, will identify initiatives that support SVHCD’s mission to improve access to and quality of care in Sonoma Valley.
Audit Engagement
Management requested Board approval to engage Baker Tilly US, LLP (formerly Moss Adams) to perform the District’s financial statement audit and related assurance services for the fiscal year ending June 30, 2026.
The District previously approved a three-year audit engagement with Moss Adams beginning in FY24. Baker Tilly will conduct the District’s annual financial statement audit, issue an opinion to the Board, and complete the required procedures under Government Auditing Standards. The Board approved the engagement.
Chief Executive Officer Report
Chief Executive Officer Kelley Kaiser reported that the SVHCD and UCSF Affiliation Agreement Committee has made strong progress and the agreement is now ready for signature.
Kelley also reported that she and the hospital’s executive leadership team are preparing for the annual Board retreat later this month. The retreat will focus on updates to the hospital’s strategic plan, with priorities that include Quality, Access and Experience, Community Engagement, Connected Culture, and Sustainability.
Operationally, the hospital continues to demonstrate positive momentum. Surgical and infusion services are growing, inpatient census remains stable at an average of 11.2 patients per day, and Emergency Department demand averages 33 visits per day.
Kelley also reported that the Stryker Operating Room Integration System has been installed and the first surgery using the technology has been completed. The Board expressed appreciation to the Sonoma Valley Hospital Foundation and the community for their support in making this investment possible.
Kelley also shared a leadership update. After more than seven years of service, including the past three and a half years as Chief Nursing Officer, Jessica Winkler will be retiring following completion of the hospital’s upcoming CIHQ survey. The Board recognized her contributions to patient care and nursing leadership across the organization.
Quality and Recognition
The Board reviewed the hospital’s current CMS Star Rating, which reflects data from the COVID era, one of the most disrupted periods in modern healthcare. Hospital leadership noted that this rating does not fully reflect the hospital’s current operational strength or the progress being made in quality performance.
Other independent measures highlight the hospital’s continued commitment to high value care. In 2025, Sonoma Valley Hospital received the Get With The Guidelines® Stroke Silver Plus Award from the American Heart Association.
The Lown Institute Hospital Index, which evaluates hospitals based on community benefit, health equity, and avoidance of unnecessary care, continues to recognize Sonoma Valley Hospital for its performance. The Hospital has been named to the Lown Institute Honor Roll for Social Responsibility and previously received straight A’s for 3 years running.
For the second consecutive year, Sonoma Valley Hospital has also been recognized as a Top Performer in Partnership HealthPlan of California’s Hospital Quality Improvement Program (HQIP), achieving a score of 90 percent or higher.
Patient experience remains strong, with real time Q Reviews showing an average satisfaction score of 4.85 out of 5.0 in 2025.
Chief Medical Officer Report
Chief Medical Officer Dr. Patrick Okolo provided an update on the hospital’s quality oversight and performance trajectory.
He emphasized that quality remains foundational to patient safety, operational reliability, and community trust. Current oversight includes monitoring mortality, patient safety indicators, falls, stroke outcomes, readmissions, and length of stay, along with continued work on CIHQ corrective action plans and documentation workflows.
Governance updates have aligned hospital reporting more closely with CMS monitored measures while maintaining internal monitoring systems that support continuous improvement.
Operational growth continues in key service lines. In January 2026, the hospital performed 117 surgical procedures and 63 outpatient infusions. February is projected to reach 131 surgical procedures and approximately 60 infusions. This steady growth reflects physician confidence and improved operational throughput.
Financial Performance – January 2026
Chief Financial Officer Ben Armfield reported that January was the first month this fiscal year in which the hospital did not meet its monthly budget target.
The hospital posted an operating loss of $(552,000) compared to a budgeted loss of $(238,000). Operating EBDA was $(177,000) versus a budgeted positive $275,000. The variance was primarily driven by a decline in surgical volumes, several one-time expense increases, and elevated interest expense associated with full utilization of the line of credit.
Despite the January variance, year to date financial performance remains strong, and the hospital continues to outperform budget through the first seven months of the fiscal year. The Board also noted that liquidity continues to improve with IGT funding and strong cash collections, increasing days cash on hand to 13.4.
As we reflect on these updates and the continued collaboration across our community, we remain grateful for the physicians, nurses, caregivers, staff, and partners who support Sonoma Valley Hospital every day. Their dedication helps ensure that our community continues to have access to high quality healthcare close to home.
Warm regards,
Wendy Lee Myatt
Chair, Sonoma Valley Health Care District Board
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