Hazel Hawkins Memorial Hospital speaks on what declaration for bankruptcy means

HOLLISTER, CALIF. (KION-TV)- Hazel Hawkins Memorial Hospital is going through a financial crisis.

During a special board meeting, directors passed a resolution declaring a fiscal emergency. This allows administrators to file Chapter 9 Bankruptcy when they see it necessary.

The administration says this will allow the district to restructure its finances. Although they’ve done everything they can, it’s still not enough, according to Interim CEO Mary Casillas.

“Over the last 2 years, hospital management and the board have taken really significant steps to reduce expenses,” Casillas said. “With increased inflation, shrinking reimbursements, and recovering from COVID, it really has put us to where we are now.”

This sudden move was something nobody had expected, especially from those that work in the hospital, according to Registered Nurse Diane Beck.

“It was a shock to all of us,” Beck said. “And as soon as we did find out, as soon as I found out, I contacted the labor rep and said hey, we need to find out what’s going on.”

Even bigger than the possible bankruptcy was the lack of transparency. The nurses want the higher-ups to know about informing them and the community.

“It’s not just a meeting of ok, we’re gonna have a meeting tomorrow,” Beck said. “They need to come forward and let us know at least 2 to 3 weeks in advance so that the community can be at those meetings.”

In response to the communication issue, the hospital says it will keep in touch with workers and the community to ensure no issues. 

It was also informed that the nurses would have their own meeting to see what they could do to keep the hospital doors open. The hospital says there will be no reduction in services, and business will stay as usual.