Hazel Hawkins and Watsonville Community Hospital to receive over $18 million in loans
CENTRAL COAST, Calif. (KION-TV)- Governor Newsom announced Thursday $300 million in zero-interest loans for 17 distressed community hospitals throughout the state.
Two local hospitals on the Central Coast will get money from the “Disaster Hospital Loan Program."
This includes two hospitals on the Central Coast. Hazel Hawkins Memorial Hospital in San Benito County and Watsonville Community Hospital in Santa Cruz County were included in this loan program, announced Assembly Speaker Robert Rivas.
Michael Ziebron, who lives in Hollister, said he was happy to hear Hazel Hawkins Hospital will receive $ 10 million.
"Hazel Hawkins is a big asset for the community, we need to keep it here,” said Ziebron. “And a zero-interest loan for the hospital is excellent.”
Marcus Young, spokesperson for Hazel Hawkins, said they need to figure out how they want to spend the money. However, he said they know how they are not going to spend it.
"The money cannot be spent on giving executives pay raises or to offset costs associated with union contracts,” said Young.
"It can go to, though, to make sure your equipment is up-to-date and up to speed, and keeping the physical plant up to speed,” said Young. “Working in a way that allows you to deliver quality patient care, those types of things is what the money is for.”
Watsonville Community Hospital will also receive help from the program. In a statement, they said in part quote.
"Watsonville Community Hospital is grateful for the $8.3 million no-interest loan the state has granted us. After emerging from bankruptcy under the previous for-profit owners, and becoming a non-profit healthcare district hospital, Watsonville Community Hospital created an aggressive turnaround plan to ensure that we could remain viable for years to come."
Watsonville Community Hospital also said the money will be used to pay hospital bills, stabilize its operations, and invest in new services. Hazel Hawkins said they should be ready to get the loan in the next few weeks.
