SAN BENITO HEALTH CARE DISTRICT VOTES TO APPROVE CHAPTER 9 FILING HAZEL HAWKINS MEMORIAL HOSPITAL REMAINS OPEN AND COMMITTED TO QUALITY CARE

FOR IMMEDIATE RELEASE

PR CONTACT: Frankie Gallagher

Hazel Hawkins Memorial Hospital

Phone: (831) 636-2644

Email: fgallagher@hazelhawkins.com

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SAN BENITO HEALTH CARE DISTRICT VOTES TO APPROVE CHAPTER 9 FILING

HAZEL HAWKINS MEMORIAL HOSPITAL REMAINS OPEN AND COMMITTED TO QUALITY CARE

May 22, 2023 – Hollister, Calif. – This evening, the San Benito Health Care District (District) voted to file for Chapter 9 paving the way for it to tackle the systemic challenges it continues to face.

“This option has been on the table since November of last year,” said Marcus Young, spokesperson for Hazel Hawkins and the District “For the past several months we have done all we can to shore up our finances, cut costs, and collect advance payments where we can, but this decision allows us to deal with larger issues we just can’t tackle outside of Chapter 9.”

Hazel Hawkins Memorial Hospital will remain open and fully committed to delivering quality patient care for the greater community while leadership looks for a strategic partner or buyer.

The Chapter 9 process will provide four key components. First, it will resolve key contract issues relating to its self-inured status for healthcare benefits for employees – this is costing the District over $15 million a year currently and is not in alignment with other similar sized institutions. Second, the filing allows the hospital to remain open and fully operational during the process. Third, it can accelerate the search for a partner or buyer. And fourth, the court can appoint an ombudsman to ensure the quality of care provided to our community.

“We want this community to know that our hospital is open and caring for patients every day – we are not closing,” said Young. “From the very start, our goals have been clear – find a way to continue to offer the best care for our community. This filing is one of the ways we can achieve that goal.”

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About Hazel Hawkins Memorial Hospital

Hazel Hawkins Memorial Hospital is a full-service, public agency hospital delivering modern medicine and compassionate care to the growing San Benito County community. HHMH offers hundreds of health services across multiple locations, including top-tier specialists, a modern Emergency Department, and a state-of-the-art Women’s Center. To learn more about Hazel Hawkins Memorial Hospital and the Hazel Hawkins Hospital Foundation, please visit www.hazelhawkins.com.