Hazel Hawkins Memorial Hospital—whose administrators earlier this year declared a state of fiscal emergency—recently requested $10 million in the form of emergency bridge funding from the San Benito County (California) Board of Supervisors, the Hollister Free Lance reports.
The hospital sent the proposal for a $10 million loan to the board on Dec. 5. “Hazel Hawkins is actively seeking new opportunities to ensure continuity of healthcare and an orderly restructuring process,” says a press release from HHMH.
The funding from the county would give the hospital enough time to implement a restructuring plan that would stabilize HHMH’s operations into the future through new affiliations or additional financing, according to the press release. The hospital’s main goal is making sure healthcare services continue without interruption.
Hazel Hawkins’ board of directors on Nov. 4 approved a resolution of a fiscal emergency, which authorizes the hospital’s administrators to file a petition under Chapter 9 of the U.S. Bankruptcy Code. Read more.
Less than a month before that, the hospital board ended its contract with former CEO Steve Hannah. Appointed as interim CEO was Mary Casillas, who was formerly Hazel Hawkins’ Chief Operating Officer.
HHMH has not yet filed a petition for bankruptcy. Casillas has said such a filing “would allow the district to optimally restructure its finances so we can continue to care for our community and keep our doors open.”
