San Benito County is no longer a financial assistance option for Hazel Hawkins
After some back and forth Thursday, the San Benito County Board of Supervisors rejected Hazel Hawkins Memorial Hospital’s request for a $10 million loan from the county’s rainy day 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 November 4 and authorized administrators to file a Chapter 9 bankruptcy petition when they deem it appropriate. . Hazel Hawkins administrators applied for the loan to give them more time to implement a restructuring plan rather than file for bankruptcy or cut services, the hospital said. Although supervisors rejected the loan request, they did approve an advance on the hospital’s property tax refund. The hospital will receive a total of $2.2 million. Half of the amount is what the county projects it will owe the hospital in April 2023, hospital officials said. Supervisors say the property tax advance does not put the county at financial risk. “We are grateful that the county has decided to advance property tax funds and hope that they will reconsider bridging funding for the health and safety of our community,” said Mary. Casillas, interim executive director 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 is ultimately forced to close, it could mean patients have to travel to other counties to find needed care. “If we don’t have that vital service here, this community would be in trouble, and this is a life and death situation,” said Jeff Long, a San Benito County resident. Board members felt the hospital loan he was asking for was too high and could jeopardize the county financially.” As far as the loan goes, it’s just a completely fiscally reckless move, it’s a gamble, and you’re basically playing crab with $10 million of taxpayer money, and it’s completely irresponsible,” said Supervisor Kollin Kosmicki. Concern for many of the supervisors is that the hospital lacks a plan for moving forward. The chief executive of the The hospital said its current plan, now with the decision, is looking at other avenues of funding and is not ruling out layoffs.”We are looking at state funding, we are looking at options with the federal government. We are looking for private financing,” Casillas said. “We are looking at all possible avenues to get the emergency funds we need to continue services for a community.” Hazel Hawkins applied for a $3 million bridging loan from the Financing Authority program of California Health Facilities, the hospital announced Friday. The hospital also announced it has begun cost-saving and cost-reduction measures. Initial steps include a hiring freeze and a strategic review of staffing positions, the authorities. Hazel Hawkins is also looking at more cost-effective supplies and auditing its billing department to maximize collections. “Cost reduction measures do not affect the quality of patient care, including emergency services,” a news release said. of the hospital.
After some back and forth Thursday, the San Benito County Board of Supervisors rejected Hazel Hawkins Memorial Hospital’s request for a $10 million loan from the county’s rainy day 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 November 4 and authorized administrators to file a Chapter 9 bankruptcy petition when they deem it appropriate. .
Hazel Hawkins administrators applied for the loan to give them more time to implement a restructuring plan rather than file for bankruptcy or cut off services, the hospital said.
Although supervisors rejected the loan request, they did approve an advance on the hospital’s property tax refund. The hospital will receive a total of $2.2 million. Half of the amount is what the county projects it will owe the hospital in April 2023, hospital officials said.
Supervisors say the property tax advance does not put the county at financial risk.
“We are grateful that the county has decided to advance property tax funds and hope that they will reconsider bridging funding for the health and safety of our community,” said Mary Casillas, the hospital’s interim CEO.
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 is ultimately forced to close, it could mean patients have to travel to other counties to find needed care.
“If we don’t have that vital service here, this community would be in trouble, and this is a life or death situation,” said Jeff Long, a San Benito County resident.
Board members felt that the loan the hospital was asking for was too high and could jeopardize the financial state of the county.
“As far as the loan goes, it’s just a completely tax reckless move, it’s a gamble, and you’re essentially playing crab with $10 million of taxpayer money, and it’s completely irresponsible,” the supervisor said. Kolin Kosmicki.
The concern of many of the supervisors is that the hospital lacks a plan for moving forward. The executive director of the hospital said that his current plan, now with the decision, is looking for other ways of financing and does not rule out layoffs.
“We are analyzing state financing, we are analyzing options with the federal government. We are analyzing private financing,” Casillas said. “We are looking at all the avenues we can pursue to get the emergency funding we need to continue services for a community.”
Hazel Hawkins applied for a $3 million bridge loan from the state treasurer’s California Health Facilities Financing Authority program, the hospital announced Friday.
The hospital also announced that it has initiated cost-saving and cost-reduction measures. Initial steps include a hiring freeze and a strategic review of staff positions, officials said. Hazel Hawkins is also looking at more profitable supplies and auditing her billing department to maximize collections.
“Cost reduction measures do not affect the quality of patient care, including emergency services,” a hospital news release said.