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Watsonville Community Hospital reports nearly $23 million loss in 2025
By Tania Ortiz
Watsonville Community Hospital reported losses of nearly $23 million in 2025 following a challenging year of fewer patient visits and changes to federal and state funding. Hospital leadership expects to have an update by March on its search for a private partner to help shore up its finances.
The best things I ate and drank in Santa Cruz County in January
By Lily Belli
Defying January doldrums, Lookout food and drink correspondent Lily Belli launches a monthly food-and-drink dispatch from Santa Cruz County’s dining scene. She selects from a month of eating to highlight brothless ramen, a revived Syrian pop-up, the return of a Capitola classic and hand-pulled noodle soup as the most memorable bites.
Capitola police, Central Fire crews respond to burning building over the weekend
By Ashley Palma-Jimenez
Capitola Police Department officers and crews from the Central Fire District of Cruz County responded to a fire at an apartment building on 45th Avenue on Saturday night that injured one.
Carmageddon: City hopes to make decision on Murray Street two-way traffic within weeks; RTC’s early steps toward interim trail construction
By Max Chun
After the Murray Street Bridge reopened last week for the first time since last June, the City of Santa Cruz is continuing to gauge the feasibility of allowing two-way vehicle and bicycle traffic along the one opened lane, and hopes to make a decision within weeks.
OPINION: A Lookout View: After the Moss Landing fire, the public deserves answers — not silence
By Lookout Editorial Board
“We know investigations often lag, but the lack of clear information leads us to ask troubling questions,” the Lookout Editorial Board writes more than a year after the massive fire at the Moss Landing battery storage plant. “Why has it been so hard to get consistent answers from the officials charged with protecting the public?”
OPINION: Federal cuts put Watsonville Community Hospital at risk. Partnership is the way forward.
By Stephen Gray
Watsonville Community Hospital reflects the growing fragility of Santa Cruz County’s health care system, strained by rising costs, workforce shortages and declining reimbursements. Despite real progress since becoming community-owned in 2022, Stephen Gray, the hospital’s CEO, writes that new federal Medicaid cuts are projected to cost the hospital up to $10 million annually, threatening local access to care. Measure N has funded critical facility upgrades, he writes, but state law prevents those dollars from covering staffing or service losses caused by federal cuts. To protect and expand health care services, the Pajaro Valley Health Care District is now actively seeking a strategic operating partner to ensure long-term stability. He insists the hospital will work to preserve local oversight.

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Best of Santa Cruz County events, February 2-5
Here are some events you may be interested in this week:
Monday, Feb. 2
- Knitting at the Library @ Felton | 12 p.m. @ Felton Branch Library
- After School Kids Classes | 3 p.m. @ Santa Cruz Maker Studios | $36 to $50
- Drop-In Figure Drawing: 3-Hour Long Pose | 10 a.m. @ Santa Cruz Art League | $25
- The Antidote to Fear: Breema Bodywork & Self-care Exercises | 7 p.m. @ Hummingbird Valley | $20
- 8 Tens @ 8 Short Play Festival | 2 p.m. @ Santa Cruz Actors’ Theatre | $16 to $35 (Two-for-one ticket pricing on Thursday nights)
- Dance into ’26 in Capitola at the Mid Co Senior Center | 6 p.m. @ Mid County Senior Center | Free
Repeats once more on February 2
- MahJong Mondays @ Branciforte Library | 10 a.m. @ Branciforte Branch Library | Free
- Joel Ross – Good Vibes | 7 p.m. @ Kuumbwa Jazz
Tuesday, Feb. 3
- Moe’s Alley Presents: Say She She “Cut & Rewind Tour” w/ Katzù Oso | 8 p.m. @ Moe’s Alley
- MAGIC HUNKS® at Bruno’s Bar and Grill! | 8 p.m. @ Bruno’s Bar and Grill | $17.79
- Breath for Life: Opening to Love | 7 p.m. @ Breath + Oneness | $24
- Inter|Act Spoken Word Open Mic with Featured Poet Geraldine Connolly | 7 p.m. @ Satori Arts | Free
- Karaoke with Moondog | 7 p.m. @ Bay Bar and Grille | Free
- Watercolor Painting with Linda Lord | 1 p.m. @ Santa Cruz Art League | $200 (SCAL members get a 12% discount on classes!)
Repeats once more on February 3
- Wahine Beginning Class: Te Hau Nui School of Hula and Tahitian Dance | 7 p.m. @ The 418 Project
- Downtown Streets Work Readiness Mtg | 10 a.m. @ The 418 Project
Wednesday, Feb. 4
- Wig Out Wednesday | 4 p.m. @ Big Basin Vineyards Tasting Room and Wine Bar | Free
- Motion Pacific: Dance for PD | 1 p.m. @ The 418 Project
- Whiskey and Wings with Nick Disalvo! | 6 p.m. @ Bruno’s Bar and Grill | Free
- Yermo Aranda Retrospective | 12 p.m. @ Santa Cruz Art League | Free
- METRO Offers Free Fares on February 4th in Honor of Transit Equity Day | 12 a.m. @ Santa Cruz County | Free
- Moving in Harmony with Life – Self-care Exercises for Vitality and Balance | 12 p.m. @ Hummingbird Valley | Free
- Art Lounge ~ Join us for Arts, Crafts & Drafts! | 5 p.m. @ The Painted Cork | $8 to $95
- Mind-Body Open House | 4 p.m. @ The Lotus Collaborative | Free
Thursday, Feb. 5
- Sewing Lessons for Beginners | 10 a.m. @ Everything Home | $60 to $90 (Save 10% when you purchase 6 weeks up front.)
- Persephone Restaurant Thursday Night Pasta Special | 5 p.m. @ Persephone Restaurant | $40
- TOBACCO CITY, SCOTT HIRSCH | 8 p.m. @ The Crepe Place
- Special Trivia Night! | 7 p.m. @ Bruno’s Bar and Grill | Free
- Tulips ~ 2hr class | 6 p.m. @ The Painted Cork | $45
- Awe: The New Science of Everyday Wonder with Dr. Dacher Keltner | 6 p.m. @ Santa Cruz Museum of Art & History | $12 ($12, Free for MAH Members)
- Enlightened Feminine | 6 p.m. @ Wisdom Center of Santa Cruz | $60 to $90
- Black History Month Film Series | 6 p.m. @ The 418 Project | $20 (Sliding scale. First two films in the series are free!)






