This was said to be a "coming of age" move for Cranford, which would bring it in line with the governance of other hospices around the country.
On behalf of the PSEC Board, chairman Maitland Manning said PSEC was putting the interests of the community first, and had played an active role in passing Cranford into community ownership.
Establishing the hospice 35 years ago took vision, courage and a lot of persistence, he said.
"A number of people gave freely of their own time and their own expertise to make it happen. As a result, today Cranford is a very highly regarded part of the hospice scene and is highly valued by the Hawke's Bay community," the chair said.
"We are proud, not only of the crucial part PSEC played in bringing Cranford into being, but in our willingness to gift Cranford when the time was right".
The PSEC board, executives, staff and volunteers said they wished Cranford Hospice all the best for the future, and continued to have great faith in the exceptional service they provide to those in need.
The gifting of the service - one of four that PSEC govern - was fully supported by Hawke's Bay District Health Board, Cranford Hospice Board and the Cranford Hospice Foundation.
Cranford Hospice started in Hawke's Bay in August 1982 with a handful of volunteers. Today it has around 75 paid staff, 400 volunteers and every year cares for about 750 patients and their whanau.