After some back-and-forth on Thursday, the San Benito County Board of Supervisors denied Hazel Hawkins Memorial Hospital’s request for a $10 million loan from the county’s rain fund. hospital, declared a fiscal emergency on November 4 and authorized administrators to file a Chapter 9 bankruptcy petition when they consider the appropriate steps. Hazel Hawkins administrators were asked for a loan to give them more time to implement a restructuring plan instead of filing for bankruptcy or cutting. services, said the hospital. When supervisors denied the loan request, they pre-approved the hospital’s property tax refund. The hospital will receive a total of $2.2 million. Half of that amount is what the county projects it will owe the hospital by April 2023, hospital officials said. Supervisors said the property tax advance does not put the district at financial risk. Casillas, interim CEO of the hospital.Hazel Hawkins is the only hospital in San Benito County, providing more than 700 jobs, and helping hundreds of thousands of patients each year. If it ends up being forced to close, it could mean patients have to travel to other counties to get the care they need. “If we don’t have essential services here in this community we’re in trouble, and this is a life-or-death situation,” said Jeff Long, a San Benito County resident. The board members felt that the loan was the hospital. This is asking too much and can jeopardize the financial county. The concern of many supervisors is that the hospital does not have a plan going forward. The CEO of the hospital said that their current plan, now with the decision, is to look at other ways for funding and not to rule out layoffs. to see private funds,” said Casillas. “We are looking at every avenue we can see to get the emergency funding we need to continue services to the community.” Hazel Hawkins has requested a $3 million bridge loan from the California Health Facility Financing Authority program, the state treasurer. the hospital announced Friday. The hospital also announced that it had begun cost-cutting and savings measures. Initial steps include a hiring freeze and a strategic review of staff positions, officials said. Hazel Hawkins also sought more economical supplies and audited the billing department to maximize collections. “Cost reduction measures do not affect the quality of patient care delivered, including emergency services,” said a press release from the hospital.
After some back and forth on Thursday, the San Benito County Board of Supervisors denied Hazel Hawkins Memorial Hospital’s request for a $10 million loan from the county’s rain fund.
The request came after the board of directors of the San Benito Health Care District, which oversees the hospital, declared a fiscal emergency on Nov. 4 and authorized administrators to file for Chapter 9 bankruptcy while they consider the appropriate steps.
Administrator Hazel Hawkins requested the loan to give them more time to implement restructuring plans rather than file for bankruptcy or cut services, the hospital said.
When supervisors denied the loan request, they pre-approved the hospital’s property tax refund. The hospital will receive a total of $2.2 million. Half of that amount is projected the district will owe the hospital by April 2023, hospital officials said.
Supervisors say the property tax advance does not put the district at financial risk.
“We are grateful that the County decided to open the property tax fund, and we hope they will reconsider the bridge fund for the health and safety of the community,” said Mary Casillas, interim CEO of the hospital.
Hazel Hawkins is the only hospital in San Benito County, providing more than 700 jobs, and helping hundreds of thousands of patients each year. If it ends up being forced to close, it could mean patients have to travel to other counties to get the care they need.
“If we don’t have essential services here in this community there’s a problem, and this is a life-or-death situation,” said Jeff Long, a San Benito County resident.
Board members felt that the hospital loan was asking too high and could jeopardize the county financially.
“As far as the loan, it’s just a completely reckless fiscal maneuver, it’s a gamble, and you’re basically playing crab with $10 million of taxpayers’ money, and it’s completely responsible,” said supervisor Kollin Kosmicki.
The concern of many supervisors is that the hospital does not have a plan going forward. The CEO of the hospital said the current plan, now with the decision, is looking at other avenues for funding and not issuing layoffs.
“We are looking for state funding, we are looking for options with the federal government. We are looking for private funding,” said Casillas. “We are looking at every avenue we can see to get the emergency funding we need to continue services to the community.”
Hazel Hawkins has applied for a $3 million bridge loan from the state treasurer’s California Health Facility Financing Authority program, the hospital announced Friday.
The hospital also announced that it had begun cost-cutting and savings measures. Initial steps include a hiring freeze and a strategic review of staff positions, officials said. Hazel Hawkins also sought more economical supplies and audited the billing department to maximize collections.
“Cost reduction measures do not affect the quality of patient care delivered, including emergency services,” said a press release from the hospital.
