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At the San Benito Health Care District’s June 27 meeting, financial advisor Richard Peil told the hospital board that Insight Health Systems is working on lease and purchase agreements, which are expected next week.
The board’s ad hoc committee, which consists of members Jeri Hernandez and Devon Pack, will review the documents and present their findings to the rest of the board members.
It’s possible that a special meeting will be called before the board’s next regular meeting in July, the board’s legal counsel Heidi A. Quinn said. No date was mentioned.
On June 6, the board unanimously approved moving forward with Michigan-based Insight, continuing negotiations for a five-year lease-to-own agreement for the Hazel Hawkins Memorial Hospital. Insight officials previously said they would keep the current hospital’s services intact, including maternal health and obstetrics.
If the board authorizes the agreements, voters will decide in a Nov. 5 ballot measure whether to approve or deny the transfer of assets to Insight.
Peil was asked by Chief Executive Officer Mary Casillas when the board should expect to hear back about the agreements.
“It’s really tough to say,” he said. “It depends on the documents. The goal is to have more definitive agreements more or less complete by the end of July.”
The district’s move to find a partner to take over the hospital began with the declaration of a fiscal emergency in November, 2022. In May 2023, the board filed for bankruptcy. The California Nurses Association and National Union of Healthcare Workers opposed the bankruptcy application, and after a four-day hearing in December 2023, a San Jose judge denied the application. The board filed an appeal in March, and the appeal was denied.
During public comment, two speakers said San Benito County residents aren’t in favor of the proposed deal. The majority of public comments in recent weeks have voiced opposition.
Georgle Fendler said he spoke to his friends and neighbors, and none supported the sale.
“I have a feeling that if this ends up on the ballot, it will go down in flames,” he said. “And I hope it doesn’t cost a great deal of money to pass this measure on the ballot.”
Fendler urged the board to reconsider alternatives to selling the hospital’s assets.
Roxy Montana, who has served numerous terms on the San Benito County Civil Grand Jury, agreed: “I have not met one single person who is for the sale or the lease option.”
You’re trying to sell off the hospital, is what many say,” she said. “But you can’t sell off our vote.”
Montana reminded the board that three of its seats are up for election on Nov. 5 and said there were people who would be running against them, if they decided to run again.
The seats of Jeri Hernandez, Bill Johnson and Rick Shelton are up for election this year. Additionally, resident Robert Bernosky, active in the state and county Republican Party, announced his plan to recall the seat on the San Benito Health Care District Board of Directors held by Josie Sanchez.
San Benito County Health Care District board members are not paid but are offered a health insurance plan. According to Marcus Young, the health care district’s public information officer, none of the current board members have signed up for the plan.
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