California hospital ineligible for bankruptcy, court rules

Hollister, Calif.-based Hazel Hawkins Memorial Hospital failed to satisfy all the statutory requirements to remain in Chapter 9 bankruptcy, according to a March 21 Bankruptcy Court ruling.

The San Benito Health Care District, which oversees the hospital, voted in May 2023 to file for bankruptcy after declaring a fiscal emergency in November 2022. The California Nurses Association objected to the filing and noted in a hearing last year that financial cuts led to lower quality care. The union also said the hospital was solvent and able to pay bills through the fiscal year's end in June.l

While the court acknowledged the financial challenges Hazel Hawkins faced in the last several years, it concluded the hospital is not insolvent. Hospital administrators are working with legal and financial advisers to determine the effect of the ruling.

"This ruling is not a judgment on the hospital's current solvency, and we are not out of the woods on our financial crisis," Hazel Hawkins said in a March 21 news release. "The hospital's primary goal continues to be keeping its doors open to provide high-quality care for the residents of San Benito County."

The court also noted Hazel Hawkins' board, leadership and staff met the financial challenges with "innovative solutions and a sense of resilience."

Copyright © 2024 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.


Featured Whitepapers

Featured Webinars