Quick Take
Watsonville Community Hospital leadership has appointed Tim Moran, a longtime healthcare leader, as interim CEO. He will take over for outgoing CEO Stephen Gray following his last day on July 10.
Watsonville Community Hospital leadership has appointed veteran healthcare executive Tim Moran to lead the facility as interim CEO.
Moran, who has more than three decades of healthcare leadership experience, will be at the helm of the hospital beginning July 11, following outgoing CEO Stephen Gray’s last day on July 10.
Gray announced his departure from the hospital earlier this month, saying that he wanted to prioritize more time with his family. He took over as hospital CEO in 2023, when the facility became publicly owned after facing bankruptcy in 2022.
Moran will serve as interim CEO through Jan. 11, 2027, as the hospital board searches for a permanent replacement for Gray, Tony Nuñez, head of the hospital’s governing board, said Wednesday night. He added that Moran’s tenure could be extended if needed.
The board approved a $416,000 annual salary for the interim CEO position. But since Moran is expected to be in the role for only six months, the base pay is not expected to exceed $208,000, said Nuñez. Moran will also receive temporary employee benefits and a $4,500 monthly housing stipend.
This is not Moran’s first time stepping into an interim position for Watsonville Community Hospital. He served a four-month stint as interim CEO for the facility in late 2011, under its previous management.
More recently, Moran was at the helm of Chino Valley Medical Center, a 116-bed acute care hospital in San Bernardino County, where he helped strengthen daily operations and improve relationships with labor unions, according to a media release from Watsonville Community Hospital. He also served as CEO of Tri-City Medical Center, an almost-400-bed public hospital in Oceanside, where he helped ink an affiliation deal with UC San Diego in 2015 that allowed patients access to specialists, according to the media release.
“Tim understands hospitals, public accountability, people, and the importance of earning trust inside and outside the organization,” said Nuñez in a media release Thursday. “As we move through this transition, our board is focused on continuity, operational stability, and maintaining the progress Watsonville Community Hospital has made for the Pajaro Valley and South County.”
Last month, Watsonville Community Hospital received a $10.6 million state grant from a fund aimed at stabilizing hospitals in financial distress. Gray previously told Lookout that the grant is “a crucial funding bridge during a challenging financial period.”
The hospital has faced a flurry of financial challenges since late 2024, when it fell victim to a cyberattack, leading to a delay in billing patients. It also reported a nearly $23 million loss in 2025, after seeing a decline in the number of patients and changes to state and federal funding. Hospital leadership are also searching for an external partner to help manage the facility’s day-to-day operations.
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