Voters in San Benito (Calif.) County have approved Measure X, which authorizes the San Benito Health Care District to negotiate a lease-to-own agreement with Flint, Mich.-based Insight Foundation of America, a nonprofit corporation, for financially troubled Hollister, Calif.-based Hazel Hawkins Hospital.
Insight submitted a letter of intent to purchase the hospital in January 2024. The district sought Chapter 9 bankruptcy protection for the hospital in May 2023 after a fiscal emergency was declared by the board in November 2022.
In March, a bankruptcy court ruled the hospital ineligible for Chapter 9 bankruptcy, a decision that the hospital has since appealed.
"With this vote, we can now proceed with negotiations and finalize an agreement with Insight to support a seamless transition and maintain high-quality care for our residents," Jeri Hernandez, board president, said in a Nov. 18 news release.
The approved measure allows the district to lease or sell the hospital, which will provide expanded services, financial stability and physician recruitment.
Insight has pledged to invest in new equipment, retain employees and upgrade facilities associated with the hospital.
In Ohio, Insight recently took over two Dallas-based Steward Health Care hospitals, Trumbull Regional Medical Center and Hillside Rehabilitation hospital, both in Warren, Ohio.
The district and Insight will finalize transition plans and terms over the next few months.