The San Benito (Calif.) Health Care District, which oversees Hazel Hawkins Memorial Hospital, unanimously voted to file for chapter 9, KSBW reported. The hospital first declared a fiscal emergency in November 2022 that would authorize a bankruptcy filing, but hospital management did not pursue bankruptcy until they first looked at short-term solutions. “This is our final alternative to really fix the systemic issues that are plaguing the district,” said Marcus Young, Hazel Hawkins spokesperson. “We want this community to know that our hospital is open and caring for patients every day — we are not closing. From the very start, our goals have been clear: find a way to continue to offer the best care for our community. This filing is one of the ways we can achieve that goal.” According to the hospital, the bankruptcy process will provide four key components: resolves key contract issues relating to its self-inured status for health care benefits for employees; the filing allows the hospital to remain open and fully operational during the process; accelerates the search for a partner or a buyer; and the court can appoint an ombudsman to ensure a high level of care provided by the hospital. Since November 2022, the hospital has raised more than $11 million through cost savings, loans and prepayments. Hospital leaders say that this isn’t enough and will only last them through summer. One example of the hospital’s “systemic issues” that got them to this point is its self-insured status for employee health care benefits. The San Benito County Board of Supervisors are now considering entering into a nondisclosure agreement with the hospital in an effort to help connect them with a potential partner.
