Hollister, CA-based Hazel Hawkins Memorial Hospital will decide whether to file a Chapter 9 bankruptcy case at the next San Benito Health Care District board meeting on May 22, KSBW reports.
The hospital’s November 2022 fiscal emergency declaration, authorized a Chapter 9 filing, but the district did not pursue bankruptcy at that time in favor of short-term financial stabilization efforts and creditor negotiations. Since then, the district says they have achieved over $11 million in cost savings, loans and prepayments to support the District through the end of summer.
Chapter 9 is a special chapter of the U.S. Bankruptcy Code that allows cities, hospital districts and other public entities to adjust their debts in a bankruptcy case. In a bankruptcy case, the district can continue operations without disruption, including caring for patients, operating its facilities, and making payroll.
The decision to put the Chapter 9 filing on the agenda is part of the hospital’s continued efforts to shore up finances ahead of a possible strategic partnership with a larger organization. Read more.
