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A report commissioned by the San Benito County Board of Supervisors on Hazel Hawkins Memorial Hospital says the health care district lacks financial sustainability, that most county residents are seeking medical care outside of the county and that fewer childbirths are occurring in the county.
ECG Management Consultants, a San Diego-based healthcare consulting firm, will present its final report at the Hollister City Council meeting on Oct. 16, which begins at 6:30 p.m.
ECG’s financial analysis concluded that the hospital needs continued outside funding, increased clinical volume and higher revenue growth to gain financial stability.
An annual increase of 500 to 600 inpatient discharges, or about 1.5 additional discharges a day, would significantly improve the financials of the hospital’s acute facility, the report states.
According to the report, the hospital’s acute facility currently brings in 83% of its operating revenue, which is about $2.3 million of net income, while the hospital’s two skilled nursing facilities are more profitable and bring in a net income of $4.4 million.
“Without significant changes, ECG expects HHMH’s income from operations to remain negative in the coming years,” the report states.
According to the report, most county residents seek medical care from hospitals including Good Samaritan Hospital in San Jose (47.8 miles from Hazel Hawkins), Kaiser Foundation Hospital in San Jose (40.1 miles from Hazel Hawkins), Salinas Valley Memorial Hospital (32.2 miles from Hazel Hawkins), St. Louise Regional Hospital (19.4 Miles from Hazel Hawkins), and Stanford Health Care (66.6 miles from Hazel Hawkins).
It adds that about 57% of San Benito County residents seek medical care in Santa Clara County, Monterey County and surrounding counties and that in 2021, more than 39% sought inpatient care in Santa Clara County, with about 15% of those patients going to Stanford or Good Samaritan.
The report also states that about half of all new births by San Benito County residents happen out of the county. According to the report, Hazel Hawkins Hospital delivered 412 babies in 2021 and that the other 51% of babies born to county residents were delivered outside of the county.
The San Juan Bautista City Council is scheduled to receive a presentation on the hospital from ECG during its Oct. 17 regular meeting at 5 p.m.
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