Hollister, Calif.-based Hazel Hawkins Memorial Hospital is seeking a buyer or partnership to stabilize its finances, the Silicon Valley Business Journal reported Feb. 2.
The hospital's interim CEO Mary Casillas told the outlet that a strategic partnership is the most likely source of long-term stabilization.
"[Hazel Hawkins] cannot continue as a stand-alone service provider and successfully compete with larger, regional health care providers," she said.
The hospital secured a $3 million from the California Health Facilities Financing Authority in January that extended the estimated time it would run out of funds from Feb. 18 to mid-March.
Hazel Hawkins is seeking to secure $10 million in additional funding from the state that would allow it to operate until at least September, according to the report.
The hospital's board of directors on Nov. 4 passed a resolution declaring a fiscal emergency, which granted administrators the authority to file Chapter 9 bankruptcy if and when necessary. Officials have attributed its financial troubles to several factors, including high inflation, reduced reimbursement from Medicare and Anthem Blue Cross, as well as the lingering impact of the COVID-19 pandemic, according to the report.