Buried way, way down in the story is:
“Brackner said Scott Ciesielski, chief administrative officer at Providence Sonoma County, told nurses the pediatric wing’s “current model is not sustainable” and that the 10-bed wing had a daily average census of 1.96 patients.”
California’s birth rate is now at its lowest level in 100 years with a fertility rate of 1.52: California’s Plunging Birth Rates – Public Policy Institute of California
Keeping a little used asset open (with 12 nurses assigned to it), is very expensive – and means the hospital must make up the losses by charging more money for other services, raising the price of health care.