The San Benito Health Care District this week announced the next steps in the ongoing process to finalize the lease-to-own transaction between Hazel Hawkins Memorial Hospital and Insight. While progress has been made, there is still crucial work ahead to complete the transaction. In a press release, the district outlined the six key steps listed below:
Finalizing definitive agreements
Advisors and staff, acting under the direction of the District Board, are currently negotiating definitive agreements with Insight. These agreements include the asset purchase agreement, the lease, and supporting documents.
Filing applications with the state
Simultaneously, advisors and staff are preparing the necessary filings for the state regulatory approvals. This includes applications related to the change in ownership of hospital assets, such as the hospital license.
Presentation of agreements to the board
Once draft agreements are finalized, they will be presented to the board for review, discussion and approval. This review will take place during a noticed public meeting. Community members are encouraged to attend and comment.
Board approval and submission of regulatory filings
Once the board approves the agreements, HHMH will execute the agreements and submit the required documents to state regulatory agencies for review.
Regulatory review and approval
Regulators will review the submitted agreements and filings to ensure compliance and approve the transaction. The review and approval process in similar transactions typically takes between three and four months.
Transaction close and Insight’s management transition
Upon receiving regulatory approvals, the transaction will be complete, and Insight will officially assume management of HHMH pursuant to the lease.
