The ballot measure comes after the San Benito Health Care District Board voted on July 25 to continue negotiations with Flint, Mich.-based Insight Health System, according to the report. Voters are being asked whether to approve a five-year lease-to-own deal with Insight’s newly formed California nonprofit named Insight Health Foundation of California.
Insight’s Chief Strategy Officer Atif Bawahab said the California nonprofit will be managed by a board of directors drawn from the local community and will invite public representation and input, according to the report.
An agreement between the district board and Insight is not finalized but is expected to be completed before the Nov. 5 election, according to the report. Terms being negotiated include continuing to provide all services now available at the hospital and a “first right of refusal clause” that would give the district a chance to buy back the hospital’s assets if Insight were to sell.
Separately, county government officials voted to place a non-binding advisory measure on the ballot asking whether the county should establish a Joint Powers Authority with the healthcare district and other interested jurisdictions to operate the hospital.
The San Benito Health Care District voted in May 2023 to file for Chapter 9 bankruptcy after declaring a fiscal emergency in November 2022. The California Nurses Association objected to the filing, arguing the hospital was solvent and able to pay bills through the fiscal year’s end. A California judge acknowledged the financial challenges Hazel Hawkins had faced but ruled that the hospital failed to satisfy all the statutory requirements to remain in Chapter 9 bankruptcy. The board is appealing the judge’s decision.
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