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On July 31, the San Benito Health Care District rescinded a resolution they had unanimously approved July 25, and passed a revised measure asking voters to decide on a plan to lease and sell the assets of Hazel Hawkins Memorial Hospital.
Language that previously stated the district desired to “enter into a lease, with option to purchase” agreement with the Insight Health Foundation was revised to call for “leasing (with option to sell) certain real property assets of the district and selling substantially all of the District’s other assets.”
District Counsel Heidi Quinn said the intent of this resolution ordering the election is to make the ballot language both clear and concise as possible for the public so the public understands the exact measure on the ballot,
“The revised language today is more specific and more clear,” she said.
The ballot language approved on July 25 reads: “Without increasing taxes and to continue providing local access to life-saving emergency medical care, surgery, radiology, long-term care, advanced medical technology and treatments, mother/baby, clinic and physician services at Hazel Hawkins Memorial Hospital, shall San Benito Health Care District’s measure be adopted to lease with an option to purchase, said hospital facilities and other District assets to nonprofit Insight Health Foundation of California Inc. (or another qualified buyer) for fair market value as determined by an independent appraiser to ensure continued hospital services to the community?”
The measure now reads: “Without increasing taxes and to continue providing local access to lifesaving emergency medical care, surgery, radiology, long-term care, mother/baby care, clinic and physician services at Hazel Hawkins Memorial Hospital, shall San Benito Health Care District’s measure be adopted, leasing (with option to sell) certain District real property assets and selling substantially all other District assets to nonprofit Insight Health Foundation of California, Inc. (or another qualified buyer) for fair market value, determined by independent appraisal, ensuring citizens’ oversight and continued
hospital services in San Benito County?”
Quinn said additional language changes in the “whereas” provisions of the terms of the agreement are also reflected in the revised language in the ballot question.
Three public members spoke against the board’s efforts to seek bankruptcy and selling the hospital.
Hollister resident Robert Bernosky said the changes were an example of “sloppy” work and that the district was wasting taxpayer money in their efforts to sell the hospital.
Richard Piel, a consultant to the district, said at the July 25 meeting the agreement is not finalized but would be ready before the election.
According to the proposed term agreement (See PDF below) included in the agenda packet, Insight would form a nonprofit organization that would have Insight, a Michigan nonprofit corporation, as its “sole member”. The California based-nonprofit would then purchase “all right, title and interest to all hospital’s properties and assets such as inventory, equipment, computer softwares and programs, records and permits.”
Insight would lease the hospital’s real estate.
The term agreement also includes 13 operating covenants some of which are listed below:
- Continuing to provide all of the services now available at the hospital
- Maintaining a minimum of 90% of the hospital’s current workforce
- Accepting a “first right of refusal” clause that would give the district an opportunity to buy back the hospital’s assets if Insight were to sell
- Keeping the Hazel Hawkins name, or some version of it that includes the Insight brand
- Continuing to offer services to Medicare and Medi-Cal patients
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