Representatives from the San Benito Health Care District, which operates the hospital, detailed its business plans with San Benito County leaders, according to a Feb. 17 Hazel Hawkins news release.
The district has contacted more than 100 organizations nationwide and has identified “seven motivated and well-qualified potential partners,” according to Seth Freeman, managing director of B. Riley Advisory Services, a national firm hired to help turnaround the hospital. Tours with the prospective partners are underway.
San Benito Health Care District also confirmed the hospital is projected to run out of funding in April. The district has increased projected cash flow by about $6 million through a combination of cost saving and funding initiatives, according to the release.
Despite those efforts, the hospital needs more funding to continue operations through September and complete a partnership or sale, Mr. Freeman said.
The hospital’s board of directors on Nov. 4 passed a resolution declaring a fiscal emergency, which granted administrators the authority to file Chapter 9 bankruptcy if and when necessary. Hospital officials have attributed its financial troubles to several factors, including high inflation, reduced reimbursement from Medicare and Anthem Blue Cross, as well as the lingering effects from the COVID-19 pandemic.
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.