Hazel Hawkins nurses showed up in force at a Nov. 16 meeting to present the San Benito Health Care District board with a petition to keep the hospital in public hands. Nurses represented by the California Nurses Association urged the board to consider a public partnership with local governmental entities instead of pursuing a private sale to a for-profit health care company.
At the meeting, Sonia Duran, a registered nurse in the hospital’s medical surgical unit, handed board members a copy of the petition that at the time had 1,500 signatures from the community. That number has grown to 1,700, according to CNA.
This is the latest show of support by nurses at HHMH for a public sector intervention in the ongoing debate over the hospital’s future since it filed for bankruptcy in May. Since then, the district board and hospital administration has engaged in talks with American Advanced Management (AAM), a Modesto-based private healthcare company, to enter into a “strategic partnership” and take over HHMH. AAM operates six hospitals and other medical facilities in central and northern California.
Since AAM sent its non-binding letter of intent (LOI) to hospital administration in August, allegations of misconduct by AAM have surfaced. It was reported in September that the organization attempted to bribe the CEO of Madera Hospital with a $150,000 check and an executive position at the hospital if it was sold to or managed by AAM.
AAM has denied that the money offered was a bribe and said “there were better ways of handling that process,” according to attorney Hamid Rafatjoo, who represents AAM. That investigation is ongoing. Despite the allegations, HHMH has continued talks with AAM.
In a media release dated Nov. 15, CNA voiced support for efforts by San Benito County and Salinas Valley Health’s proposal of a joint powers authority (JPA) to the district board. An LOI was sent to the board on Oct. 26.
“We are calling on the San Benito County Health Care District to keep Hazel Hawkins a public community hospital,” Duran said in the statement. “The district now has before it a proposal from San Benito County as well as a consultant’s extensive report finding that the hospital does not need to be in bankruptcy or sold to a private entity. It is critical that the district does everything in its power to explore all viable options outside of bankruptcy that respect the nurses, other workers, and the community’s well-being.”
After AAM’S LOI was sent to the hospital officials, San Benito County tapped ECG Management Consultants to lead an investigation into the affairs of the hospital. ECG’S report, which was released on Sept. 29, concluded that HHMH did not need to file for bankruptcy to remedy its financial situation. The report also stated that a private sale to a for-profit provider is unnecessary and that the administrative board should be dissolved.
Based on these conclusions, the county and Salinas Valley Health, which is a public health district, drafted their LOI to propose keeping HHMH in public hands through a joint powers authority. The JPA would give administrative powers to the county, Salinas Valley and any potential public partner. Consultants for the county have made overtures to the cities of Hollister and San Juan Bautista in hopes of getting them on board.
HHMH and the district board are now in the process of due diligence on both LOI’s. Hospital administration has been receptive to the public option.
“We are pleased the County is interested in moving forward with substantive discussions about the future of HHMH,” said Mary Casillas, HHMH interim CEO, in an Oct. 27 statement . “We are looking forward to hearing more from the County and Salinas Valley Health on their proposal and vision for ensuring access to quality healthcare for San Benito County residents.”
Casillas has been accused by some members of the community of giving preference to AAM as a potential partner for the hospital. Casillas previously reported to the board that a delegation representing HMHM met staff members at AAM sites “as part of the due diligence process to see how these facilities are being managed.”
At the Nov. 16 meeting, one commenter alluded to Casillas’ potential bias.
“You need an unbiased individual leading the hospital instead of being a cheerleader for a for-profit—just an unbiased representation out in the public,” said Elia Salinas.
Diane Beck, an HHMH registered nurse represented by CNA, said the union supports the current JPA proposal and any other public alternative that makes sense for the hospital.
“We do not support AAM whatsoever. It’s a for-profit entity and we do not want a for-profit entity here,” Beck said.
