
The San Benito Health Care District stated on Wednesday that Insight Health has withdrawn from discussions regarding a planned lease-to-purchase agreement for Hazel Hawkins Memorial Hospital.
The stated reason was "uncertainty arising from the recently enacted One Big Beautiful Bill Act (OBBBA)."
Subscribe to Our NewslettersThe law is anticipated to reduce healthcare spending by $1.1 trillion, with $137 billion in cuts expected to specifically affect rural medical services.
In November 2024, residents of San Benito County approved a ballot initiative allowing the District to rent out specific property assets and sell any remaining assets to Insight or an eligible purchaser.
Our community depends on the consistency of our service lines, and any agreement needed to focus on safeguarding these services while also finding opportunities for growth and expansion in the future," said Mary Casillas, CEO of HHMH. "OBBBA has introduced a level of uncertainty in San Benito County that we have not experienced before. Although we are still assessing the full impact of OBBBA, we are aware that it has influenced the potential deal with Insight and is causing similar issues for rural hospitals throughout California and the country.
Moving ahead, Hazek Hawkins aims to improve its financial standing in order to create new approaches that will help it remain operational for the long term.
Although this marks a disappointing development in our partnership with Insight Health, our dedication to safeguarding Hazel Hawkins' future remains strong," stated Bill Johnson, President of the District Board. "Navigating the upcoming challenges from OBBBA will demand the commitment, innovation, and teamwork of our leaders, staff, doctors, and collaborators. We are eager to explore additional valuable opportunities with Insight as part of this continuous process.
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READ THE FULL STORY:Insight Health ends discussions with Hazel Hawkins, citing uncertainty surrounding One Big Beautiful Bill