Hazel Hawkins Not Appealing Bankruptcy Case

The San Benito Health District voted to not appeal Hazel Hawkins memorial hospital's chapter 9 bankruptcy case in a special meeting on Tuesday, April 8th.

Hazel Hawkins filed for bankruptcy back in may of 2023 after what the hospital calls a "Perfect storm of financial pressures" The San Benito County Health District says that by the time they declared a fiscal emergency in November of 2022, the hospital only had just over 5 million dollars, which was enough money for just 12 days of hospital operation.

Labor disputes with multiple worker unions also bringing more financial difficulties to the facility, as the Heath District says the Unions refused to negotiate, making it impossible to adjust labor costs, which the district says made up 70% of net patient service revenue.

A San Jose judge denied the filing, saying that the hospital did not prove that it's financial situation was insolvent and unable to pay their debt.

The board says that instead of working to appeal their case, the focus is on finalizing the deal with insight health after San Benito county voters narrowly approved measure x, allowing for a lease to own agreement last November.