The Daughters of Charity hospital chain is planning cuts to services at Saint Louise Regional Hospital in Gilroy and O'Connor Hospital in San Jose, NBC Bay Area has learned.
Saint Louise plans to cut its labor and delivery unit and pediatric services, while O'Connor will reconfigure its pediatrics unit and cut its neonatal intensive care unit. O'Connor also plans to shutter its outpatient physical therapy department.
The hospital chain must notify Santa Clara County officials within 60 days of its closure. The chain also needs to notify the state within 90 days.
"The decisions were difficult, but had to be made to save the hospitals," Daughters of Charity spokeswoman Donna Cumming said.
Hospital research shows 60 percent of the families in Saint Louise Regional Hospital's service area go to San Jose for labor and delivery services, Cumming said, adding the hospital's pediatrics unit sees six admissions a month.
Hospital workers told NBC Bay Area that hospital officials informed employees of the news Tuesday morning, adding that "severance packages" were discussed.
The hospital chain also closed out a bidding process Monday which had led to some speculation that the closures might mean owners may decide to file bankruptcy rather than sell.
Local
A proposed sale or merger with Prime Healthcare fell apart last month.
Santa Clara County Executive Jeff Smith and Board of Supervisors President Dave Cortese said they were "surprised" and "disappointed" because Saint Louise serves South County communities that may have trouble switching to San Jose facilities.
The county has put in a bid to buy the two South Bay hospitals.
The Daughters of Charity said it still plans to sell the hospitals and are pleased with the interest they have been getting from prospective buyers.
