Modesto, Calif.-based American Advanced Management has written a letter of intent to operate the bankrupt Hazel Hawkins Memorial Hospital.
The agreement, designed to lead to a strategic partnership between the two entities, could see AAM lease the Hollister, Calif.-based hospital's assets for "several years" prior to purchasing them outright, according to a press release shared with Becker's.
"Rural communities across the state, and the nation, are at high risk of losing access to quality healthcare," said AAM President Gupreet Singh, MD. "It's why we have focused on this model for AAM and why we feel we are a great fit for residents of San Benito County.”
The letter of intent is the first step in a "detailed and public process," according to the release. Any eventual agreement must be approved by the San Benito Health Care district.
"The LOI comes after months of effort by the district and HHMH to stabilize its finances," the release said. "While those efforts have proven fruitful, finding a partner or buyer was the only way to ensure that San Benito County residents have access to quality healthcare services for the long term."
The San Benito Health Care District board voted in May to file for Chapter 9 bankruptcy for the hospital.