Appeals Court Upholds Bankruptcy Court’s Ruling on Hazel Hawkins Memorial Hospital’s Chapter 9 Eligibility

HOLLISTER, Calif., March 25, 2025 /PRNewswire/ — Friday, the Appeals Court upheld the Bankruptcy Court’s decision regarding Hazel Hawkins Memorial Hospital’s eligibility for Chapter 9 bankruptcy protection. While we respectfully disagree with the ruling, we remain steadfastly focused on our plans to secure the hospital’s future.

The Chapter 9 process allowed us to achieve critical milestones, including maintaining full hospital operations, preserving jobs, strengthening our cash position, and extending the time needed to identify a long-term partner. Both the Appeals Court and Bankruptcy Court decisions observed that the District was financially distressed before bankruptcy and point to the success of the District’s turnaround efforts as the reason bankruptcy was no longer eligible.

We do not expect today’s ruling to impact the ongoing lease and purchase agreement negotiations with Insight. Our focus remains on ensuring the long-term stability of Hazel Hawkins Memorial Hospital and maintaining access to high-quality, local healthcare for San Benito County residents.

About Hazel Hawkins Memorial Hospital
Hazel Hawkins Memorial Hospital is a full-service, public agency hospital delivering modern medicine and compassionate care to the growing San Benito County community. HHMH offers hundreds of health services across multiple locations, including top-tier specialists, a modern Emergency Department, and a state-of-the-art Women’s Center. To learn more about Hazel Hawkins Memorial Hospital and the Hazel Hawkins Hospital Foundation, please visit www.hazelhawkins.com.

PR CONTACT: Marcus Young 
Hazel Hawkins Memorial Hospital
Phone: (415) 505-2524
Email: Marcus@wearejsa.com

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SOURCE Hazel Hawkins Memorial Hospital