Sonoma Valley Hospital’s annual report notes it has made significant strides during the past year in expanding services, introducing advanced technology and meeting the diverse needs of residents.
Sonoma Valley Hospital has made significant strides during the past year in expanding services, introducing advanced technology and meeting the diverse needs of residents, according to its 2024 annual community report.
CEO John Hennelly is pleased with this progress — detailed in the report, “Sonoma Valley Hospital 2024 Annual Community Report: Healing Here at Home (Sanacion Aqui en Casa)” — but said that continued progress is needed to better realize the four priorities identified by the hospital’s strategic plan: realigning the main campus, bringing care into the community, achieving financial stability and meeting financial compliance.
“Progress is never fast enough,” he said. “Each of these priorities is advancing at different rates. The two that made the most strides were bringing care into the community and achieving financial stability. Recruitment of several community providers coupled with the strong fundraising for expansion of our physical therapy program is bringing more care into the community.”
The hospital’s progress is reflected in its high ranking in the 2024-25 Lown Institute Hospital Index for Social Responsibility, a nonpartisan health care think tank. SVH was ranked the second most socially responsible acute-care hospital in California and one of the top 10 in the nation.
SVH also received an “A” rating, the top grade, in the equity, outcome, social responsibility and value of care and categories.
“Lown Hospital Index for Social Responsibility is the only ranking to combine metrics of health equity and value of care alongside patient outcomes, offering a holistic view of hospitals as total community partners,” Hennelly said. “We perform well clinically, but our impact is much broader. We are extremely proud to have maintained ‘A’ grades in social responsibility, value of care and cost efficiency for three years running.”
He said that SVH deepened partnerships in 2024 by extending its health care services into the community.
“The hospital is not an island,” Hennelly said. “Our mission is to serve all Sonomans. To do this, we must act in concert with a network of strong community providers including our community-based physicians, emergency responders and NGOs such as Hanna Center, Sonoma Valley Community Health Center, La Luz and Vintage House. Together, we succeed.”
He said that new facilities and physicians have boosted SVH’s on-site services in 2024.
SVH unveiled a state-of-the-art 3Tesla MRI machine that provides higher resolution images, shorter scans and enhanced comfort for patients.
“3T is the latest, highest quality magnet in the field of imaging,” Hennelly said. “We take pride in being able to provide the best, here at home.
He said the machine facilitates seamless coordination with specialists, ensuring that even complex diagnostic needs can be addressed locally.
The hospital also began a major expansion of its physical therapy department in 2024 that will add 3,500 square feet to its facility on Highway 12, nearly doubling the current capacity. To provide specialized care for a broader range of needs, the facility will provide new exam rooms, a larger gym and dedicated spaces for pediatric and vestibular therapies.
SVH plans to add eight new therapists, bringing the total to 14, to reduce patients’ wait times an ensure that they can access timely care without leaving Sonoma Valley.
“Physical therapy is vitally important to the Sonoma community,” Hennelly said. “We have experienced growing demand over the past few years and as we age, there is an expectation that demand will continue to grow. This investment will serve both the immediate need and set us up well for future needs.”
The emergency department also received a major boost in 2024 by welcoming a team of physicians from Napa Valley Emergency Medical Group.
“In 2023, the long-standing contract we held with our previous emergency department physicians expired,” Hennelly. “Through a fresh recruitment process, we landed the current group.”
He said that Napa Valley Emergency Medical Group has strong roots in Sonoma because Dr. Seric Cusick, the medical director, and several of his partners are longtime residents.
“Their focus on extensive emergency room training, including trauma, has provided Sonoma with an extremely high caliber team of physicians,” Hennelly said.
Orthopedics also received a lift with the addition of Dr. Christopher A. Walter, who has advanced expertise in advanced procedures and treatments.
“Orthopedics is a core service for Sonoma,” Hennelly said. “As we age, bones and joints fail. The addition of Dr. Walter, complementing our existing providers, ensures we can continue to provide a full array of orthopedic services to Sonoma.”
Strategic investments in critical infrastructure and technology resulted in a reduction in SVH’s cash and cash equivalents to $3.75 million in 2024 from $6.32 million in 2023 and $9.34 million in 2022.
“These projects required significant capital expenditures but were essential to modernizing our operations and positioning the hospital for long-term success,” said Ben Armfield, the hospital’s chief financial officer.
He said the decline in cash was anticipated and aligned with SVH’s capital planning.
“Encouragingly, our financial performance in the current fiscal years has been strong and we expect to see year-over-year cash growth moving forward now that these key investments have been fully completed and funded,” Armfield said.
SVH’s operating margin, excluding depreciation, fell to minus $219,809 in 2024 from $544,000 in 2023, when it had risen from minus $434,428 in 2022.
“The hospital experienced significant patient volume growth in 2023 compared to 2022, as patients seeking medical services increased following the pandemic,” Armfield said. “In 2024, the unexpected departure of one of our highest-volume surgeons led to a decline in elective surgical procedures, which in turn impacted our EBDA (operating margin, excluding depreciation).
“While this posed a challenge, we have proactively adapted our strategies — such as the recruitment of Dr. Walter — to restore surgical volumes and drive operational efficiencies in the current fiscal year.”
Reach the reporter, Dan Johnson, at [email protected].
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