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Suggesting that previous San Benito Health Care District board actions may be declared invalid, the San Benito County Civil Grand Jury’s annual report raises questions about whether the district that oversees Hazel Hawkins Memorial Hospital has properly sworn its elected officials.
The district maintains it has followed appropriate procedures.
The grand jury report was released last month as the health care district questioned Director Nick Gabriel’s residency within his district and thus his eligibility to serve on the board.
The Civil Grand Jury is convened annually and consists of 19 citizens who investigate the operations of various government departments and agencies.
According to its 47-page report, the grand jury investigated a complaint into the swearing-in process of newly elected directors of the district including Gabriel, Victoria Angelo and Bill Johnson.
The grand jury found the directors were originally sworn in by an unauthorized person on Dec. 4 and 5. The “error was subsequently remedied,” according to the grand jury report, by again swearing-in the directors on or before Dec. 19, the day of the new board’s first meeting.
Unlike the majority of public agencies, the health care district does not swear in its newly elected directors in a public meeting. Instead, it does so at an undisclosed location and time.
But the error raised questions about the validity of former elected officials’ oaths before taking office, according to the grand jury.
“It has been observed that before Dec. 4, 2024, individuals who were not authorized to administer the oath were performing this vital function,” the report states.
Hazel Hawkins Memorial Hospital Director of Marketing and Public Relations Frankie Gallagher said the district is reviewing the report and will provide a response “in the appropriate time.”
“But it is our opinion that we have complied with all laws governing the proper swearing-in of officers of the board,” she added.
The district did not disclose to BenitoLink who administered the oath of office to the current and previous board members.
The grand jury report cites California government codes 1225 and 24000, which list state and county officials that are allowed to administer oaths. Government code 24000 lists 24 positions ranging from district attorney to county librarian as county officers who are thus eligible to administer oaths.
San Benito County District Attorney Joel Buckingham said he believes an unauthorized administration of oath is not viewed as a criminal matter. He added that there are many people who are allowed to administer oaths, including notary publics.
The grand jury report says among the implications of unauthorized persons administering the oaths are the validity of board members’ positions and the actions taken during meetings, as well as the meetings themselves.
“This can severely affect the governance and operational decisions of the health care district,” the report states.
Buckingham said the consequence of illegally administering an oath includes a potential lawsuit targeting the agency and seeking to invalidate a board action, such as approving a contract.
“It’s going to be up to the judge to review a bunch of different things,” he said.
Asked if there is a statute of limitations, Buckingham said because the allegation is likely not viewed as criminal, it’s just a matter of correcting it. He said the intent of allowing an agency to fix an improper oath is to avoid invalidating years of work.
Among the recent controversial decisions made by previous health care district boards is its filing for bankruptcy, which was eventually dismissed by an appellate court, and authorizing a ballot measure that was subsequently approved by voters allowing the board to sell Hazel Hawkins. The terms of a potential sale to Michigan-based Insight Health are still being negotiated. The parties previously agreed to initial terms in 2024.
Hospital spokesperson Marcus Young said the board is expected to discuss the grand jury report at its July 24 meeting.
Director residency investigation
In June, the health care district board approved an investigation into Gabriel’s eligibility to serve on the board of directors after concerns arose regarding the location of his residence. Before launching the investigation, the district gave Gabriel until June 27 to provide documents confirming his residence. Hazel Hawkins CEO Mary Casillas was also directed to confirm Gabriel’s home address with the registrar of voters office.
BenitoLink reached out to the health care district and Gabriel but received no response before publication.
Chief Deputy Clerk-Recorder-Elections Ana De Castro Maquiz told BenitoLink the health care district submitted an inquiry to the county Registrar of Voters office about Gabriel’s address, and she said according to the office’s records he is living within Zone 5, which covers the area between Hwy 25 and Hwy 156 north to Hwy 152.
“We let them know of the status in our records,” she said. “But if they had evidence or anything else they wanted to submit they were welcome to do so.”
According to the voter information, Gabriel resides at 7350 Pacheco Pass Highway. His business, NU U Institute, Inc. mailing address was changed from 687 East Street to 930 Sunnyslope Road in Hollister in September 2024, according to documents from the office of the secretary of state.
De Castro Maquiz said as of July 14 they had not received anything more from the health care district.
Casillas said the hospital has been attempting to verify whether Gabriel still resides in Zone 5 since March but indicated he has not provided any documentation.
The relationship between Gabriel and the board has been tense. He has been opposed to the potential sale of the hospital to Insight, a move district officials have argued is the only way to keep the hospital from closing.
On Nov. 5, the district notified Gabriel, who was contracted with the district as a general surgeon, that his contract would not be renewed.
In May, Gabriel filed a $250 million claim against the district alleging the board is in breach of contract, has committed fraud and violated other California laws.
Helipad update
Meanwhile, Casillas said at the June 26 board of directors meeting that the hospital’s helipad, which has been mostly out of service since May 26, is expected to be fully operational as soon as late October. It was partially shut down because of a leak.
Gallagher said the helipad is used in “certain critical situations when the fire department is able to stand by while the helicopter lands and takes off.”
Casillas said the hospital is estimating the total cost to be about $330,000. The hospital has already received the new equipment which cost $78,000.
She said the most time-consuming part of the process is to design the new fire suppression system.
“We’ll have to fabricate the system once they get the design, the measurements,” she said. “It’s made specifically for our helipad. It’s not just a plug-and-go kind of thing.”
She said the hospital received emergency approval from the Department of Health Care Access and Information, which is responsible for regulations and building standards of hospitals.
The hospital is currently flying patients out of the Hollister Municipal Airport. Gallagher said it takes an additional 10 minutes to transfer a patient to another hospital.
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