Questions & Answers

  • The Chapter 9 process is public and transparent. The District’s debt adjustment efforts will be addressed in public bankruptcy court hearings, during the Board’s regular public meetings, and through continued townhall and related outreach methods that the District employed before the Chapter 9 filing. The District is maintaining a public website concerning important information about the Chapter 9 case at www.OmniAgentSolutions.com/SBHCD. You can also review the District’s public website, www.hazelhawkins.com/about-us/san-benito-health-care-district, for information concerning board meetings, financial audits, and other important publicly available information.

  • Yes, the Emergency Department is open 24/7 and is located at Hazel Hawkins Memorial Hospital, 911 Sunset Drive, Hollister, California. In an emergency, please call 9-1-1. Anyone may seek care at the District’s Emergency Department regardless of their insurance status or ability to pay.

  • Yes, please see your doctor if you need care. Our physicians continue to work at the District’s hospital, skilled nursing facilities, and clinics throughout the community. To find a doctor, visit www.hazelhawkins.com or call (831) 636-2644.

  • The District’s hospital, skilled nursing facilities, clinics, and other facilities will be operating normally. We will notify you of any changes to your appointments, but do not anticipate the Chapter 9 case filing will have any impact on scheduled appointments.

  • The Chapter 9 filing will have no impact on our current relationships with insurance providers.

  • The Board took this step so that the District’s leadership and its advisors can move forward to restructure the District’s finances. The principal objective of this effort is to stabilize the District’s finances so that the District can continue providing the same level of services for our community into the future. Delivering the highest quality of care remains our top priority.

  • Chapter 9 does not mean closure. The District will continue operating all of its facilities and offering its full range of services without change following a Chapter 9 filing. Chapter 9 allows the District to focus on the internal, administrative work of adjusting its debts, continuing negotiations with stakeholders, and exploring options that ensure we continue to deliver the highest level of care to our community.

  • We do not foresee making significant cuts to services or staff at this time. The District continues to offer its full range of inpatient and outpatient services, with staff serving key roles in the health care of our community. We will continue to communicate regularly to our staff through town hall meetings and written correspondence to ensure our staff is up to date.

  • Nothing about a Chapter 9 filing alters pensions as they stand right now. The District is also considering alternative plans to ensure its employees have continued, uninterrupted access to retirement planning tools into the future. For questions about your individual plan, please speak with Human Resources.

  • The District’s audited financial statements, which are posted publicly on the District’s website, show the District has held much less cash “in the bank” than other, similarly sized Critical Access Hospitals in California since at least 2019. In July 2022, a series of unexpected revenue reductions and increases in expenses (including COVID-related losses and historic inflation) combined to erode the District’s already limited cash.

  • Since then, management and the Board have taken significant steps to increase or advance revenue and reduce expenses. The District obtained loans, renegotiated contracts, and took other efforts that resulted in the District beating its financial projections by over $11 million. This effort helps us in the short term and allows the District to turn its focus to stabilizing long term operations. The Chapter 9 is a tool to assist in that long term stabilization process.

  • No. It should make us more attractive to potential partners or buyers as it demonstrates that we are taking our financial stability efforts seriously.

  • This process can take some time. This is the start of that process and we will keep you updated as we work our way through.