California hospital issues Warn Act notices to staff in case of closure

Hollister, Calif.-based Hazel Hawkins Memorial Hospital has issued a Worker Adjustment and Retraining Notification act to employees in case of a potential closure if it cannot acquire funding, CBS affiliate KION reported Dec.19.

The Warn Act is a U.S. labor law that protects employees and communities by requiring most employers with 100 or more staff to provide 60 calendar-day advance notification of planned closings and mass layoffs of employees. The Warn Act notice comes after the San Benito County Board of Supervisors dismissed Hazel Hawkins' request for $10 million in bridge funding to secure more time to develop a restructuring plan.

Hospital administrators are trying to address cash flow hurdles by seeking private funding and partnering with local and state leaders, according to the report. 

Mary Casillas, interim CEO of Hazel Hawkins, told KION she is hopeful the hospital can secure funding and that county supervisors have agreed to advance an early payment of property taxes to the hospital.

However, if Hazel Hawkins cannot get the funding it needs, administrators project the hospital will run out of cash to continue operations on Feb. 18, according to the report.

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