The debate over the future of Hazel Hawkins Memorial Hospital (HHMH) took an unexpected turn this week with an announcement by the hospital and the San Benito Health Care District (SBHCD) that they received a Letter Of Intent from American Advanced Management (AAM) in which the organization proposed a potential “strategic partnership.”
AAM is a Modesto-based healthcare company that operates six hospitals and other medical facilities in central and northern California. The organization was founded in 2012 when it opened Central Valley Specialty Hospital in Modesto and was the first company in California to revive a rural hospital following bankruptcy and closure, according to its website. In addition to Central Valley, the organization also runs Sonoma Specialty Hospital, Kentfield Hospital, Colusa Medical Center, Glenn Medical Center, Coalinga Medical Center and Orchard Hospital.
“When we started this process in December, our goals were simple: do all we can to stabilize the finances of the district while maintaining quality healthcare for the community; find a partner or buyer who understood the unique needs of our community; and find a partner who possessed the resources to guarantee a continuum of care delivery for the future needs of our county. AAM fits with that mission,” said Mary Casillas, interim CEO for Hazel Hawkins, in a press release.
The SBHCD board of directors declared a fiscal emergency for the Hollister hospital in December, and since then HHMH administrators have pursued numerous ways to keep the healthcare facility alive—including partnering with another entity. The board in May voted to declare Chapter 9 bankruptcy.
AAM stated in the letter that they are seeking to initially “lease to own” the assets of SBHCD prior to purchasing them “while maintaining the same level of high quality medical care to the residents of San Benito County.”
Keeping up the quality of care as the hospital moves through a financial emergency is a top concern for San Benito County residents and for the nurses employed at Hazel Hawkins. Staffing shortages and the temporary closing of the ICU have been alarming recent developments. The potential closure of HHMH has loomed over the debate regarding its future and AAM’s overture may help stave off such a fate.
The California Nurses Association, (CNA) which represents over 100 nurses at HHMH, is heartened by the AAM letter.
“Union nurses are encouraged to learn American Advanced Management has made a bid on Hazel Hawkins Memorial Hospital, which indicates that there is a recognition outside of our community that the hospital provides critical and life-saving care to the people of San Benito County,” CNA said in a statement.
The language of the letter, however, is concerning for CNA. In the letter, AAM requested a response from HHMH and SBHCD no later than 5pm on Aug. 11—a week after it was sent—or the proposal would be revoked.
“The nurses demand that the district solicit public input before any deal is accepted and that the district is transparent in providing proof of its due diligence concerning American Advanced Management to ensure the public is being best served in partnering with a private for-profit entity,” CNA said.
Hazel Hawkins spokesperson Marcus Young told the Free Lance that the Letter of Intent is only an initial step in the process to pursue a strategic partnership with AAM, a sort of formal invitation to begin a dialogue. It is not a finalized agreement.
“There’s still some details that need to be ironed out,” said Young, referring to the letter. “I think AAM is going to want to come back with more details on the expansion of services.”
Young went on to say that HHMH leadership will ask AAM for more details as to their expansion plans and as part of the process. The district board will need to hold a public meeting in which they can vote on whether to move forward with talks.
A special meeting has been scheduled for Monday Aug. 7 at 5pm in the Horizon at the Women’s Center.
