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Hazel Hawkins Hospital withdraws Warn Act Notices

HOLLISTER, Calif. (KION-TV)- UPDATE ON MARCH 21, 2023 AT 11:00 AM- Hazel Hopkins Hospital announced that they will be withdrawing their Worker Adjustment and Retraining Notice that was first issued in December.

The hospital and San Benito County Health Care District has progress in shoring up its finances since the issuance of the WARN notices.

“Since December, we have worked diligently to shore up the finances of the hospital and the efforts have proven successful,” said Hazel Hawkins interim CEO Mary Casillas said in a statement.

The district is beating their cash projections by more than $11 million between Nov. 2022 and February 2023. The district have preserved $6.8 million of cash from revenue enhancing and cost saving operational enhancements, $1.1 million through the deferral of certain tax liabilities.

They have also obtained a $3 million no-intrest loan from the state.

The district extended the anticipated date by which the District will run out of cash to late Summer 2023.

They are also continuing their efforts to find a strategic partner or buyer and through its professional team, has been able to contact more than 100 potential partners from across the nation. They have received one letter of intent from a qualified entity and expects additional indications of interest in the coming weeks. 

“Our efforts to implement a long-term stabilization strategy with a qualified partner present the most expedient and likely path to preserve the District’s health care facilities and operations for San Benito County,” said Casillas. 

Hazel Hawkins Hospital receives $3 million loan from state to extend funding

UPDATE ON JAN. 12 AT 8:12 PM- Hazel Hawkins Hospital announced on Friday, Jan. 12 they have received a $3 million loan from the California Health Facilities Financing Authority.

This loan will give the hospital more time to find a strategic partner, as it was estimated the hospital would have run out of money on Feb. 18. The District believes it needs at least until September 2023 for its marketing process and to close a deal for a strategic partner.

“With this loan and other operational savings endeavors, we have extended the date the District will run out of cash to mid-March,” said Mary Casillas, Interim CEO.  “Part of our long-term plan moving forward is to continue to search for additional funding and strategic partnership opportunities along with evaluating our daily operations to identify and implement cost-saving measures to continue to extend that date.”

A public forum has been announced for Monday, Jan. 23, at 5:30 p.m. at downtown Hollister's Veteran’s Memorial Building. The hospital will provide further details on their financial state and what is being done to keep hospital services.

Hazel Hawkins Hospital issues Warn Act notices to employees in case of closure

HOLLISTER, Calif. (KION-TV): Hazel Hawkins Hospital announced on Monday night they have issued a Worker Adjustment and Retraining Notification, (WARN) act to employees due to a possible closure if the hospital cannot produce funding.

The hospital said that they are working steadily to overcome cash flow challenges as they are seeking private sources of funding and collaborating with local and state leaders.

This comes after the San Benito County Board of Supervisors rejected the hospital's request for $10 million in bridge funding.

Interim Hospital CEO Mary Casillas is still holding out hope they can get the funding.

“We offer many vital health services San Benito County relies upon and are aggressively seeking bridge funding options to maintain those services as we look for a long-term strategic partner,” Casillas said.

County supervisors did agree to advance an early payment of property taxes to the hospital. Hazel Hawkins did request a $3 million bridge loan from the State Treasurer's Financing Authority program.

A hiring freeze is still in place at the hospital and a strategic review of staff positions remain in effect.

The hospital projects if they cannot get the funding they need, they will run out of sufficient cash to continue operations on February 18, 2023.

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Derrick Ow

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