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A former surgeon at Hazel Hawkins Memorial Hospital has filed a claim against the San Benito health care district for $250 million, alleging the board is in breach of contract, has committed fraud and violated other California laws.
Dr. Nick Gabriel worked at the hospital performing surgeries under contract from 2021 until 2024. The health care district, which governs the hospital, notified him in November that it would not be renewing his contract. At that time he was the lone candidate for the District 5 seat on the health care district board.
Also on the ballot in November was Measure X, which sought voter approval for the health care district to seek a potential sale of the hospital to Insight Health or another potential partner.
Gabriel was an outspoken opponent of the measure. At BenitoLink’s candidate forum in September 2024 he said he opposed the measure.
Replying to a request for comment, Gabriel referred BenitoLink to his attorney, who did not immediately respond. Health care district spokesperson Marcus Young said he could not respond “to anything that resembles pending litigation.”
BenitoLink received the claim from the health care district in response to a public records request. Gabriel included a notice of suspension and nonrenewal letters in the claim. All of the content of the suspension letter was redacted.
The claim, filed by attorney Donald Schwartz of Aptos, reads: “The actions taken against Dr. Gabriel are arbitrary, discriminatory, unfair and unreasonable.”
At the November health care district meeting following the nonrenewal notification, two community members spoke in favor of Gabriel.
County resident Elia Salinas said that the nonrenewal decision was a response to Gabriel’s opposition to the potential sale of the hospital to Michigan-based Insight Health, which the board majority has supported.
“He was not afraid to speak his mind, to speak his ideas, and based on retaliation his contract was not renewed,” she said.
At the time, Frankie Gallagher, the district’s director of marketing and community relations, said the hospital does not comment on issues involving contracts or personnel.
Hazel Hawkins, like many other hospitals in the nation, has been facing a financial crisis for several years but has been profitable the last few years. The district filed for bankruptcy in 2023 but its petition was denied by the courts on two occasions.
The health care district is scheduled to meet May 22 at 5 p.m. Among the items listed for discussion under closed session is Gabriel’s claim.
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