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On Jan. 25, San Benito County residents and nurses voiced their concerns over the promotion of Mary Casillas from interim to regular chief executive officer of Hazel Hawkins Memorial Hospital, while hospital management praised her leadership during the hospital’s ongoing financial crisis.
The change was approved in a 3-1 vote during the San Benito Health Care District’s Board of Directors meeting. Director Devon Pack voted “no” and Director Bill Johnson was absent.
The one-year agreement, which can be automatically renewed through 2027, is effective Nov. 1, 2023 and will bring Casillas a $450,000 annual salary. While Casillas will receive an annual evaluation, she will be eligible for severance pay if she is terminated without cause or resigns.
The health care district can terminate the contract without severance pay, only for cause, including:
- Breaching district policies or of CEO duties
- Neglecting duties of the CEO
- Violating the written rules and policies of the district
- Failing to monitor, oversee and implement the compliance program for the district
- Attaining a felony while employed as CEO
- Committing acts of dishonesty in public such as embezzlement of funds, misappropriation, theft or fraud
- Engaging in disruption or violence
Pack asked the board to consider adding an amendment to Casillas’ agreement, which would allow the board to renew her contract contingent on her annual evaluation results. Pack looked to the chair, Jeri Hernandez, for approval, but was met with silence.
Heidi A. Quinn, the board’s legal counsel, said if changes to the contract were proposed, the contract would need to go back into labor negotiations, which are typically done in closed session.
Of the 16 public speakers, 11 were opposed to the contract and five spoke in support of Casillas and her appointment.
Public speakers who opposed the appointment said it was a premature decision given the hospital’s bankruptcy filing last year, that Casillas’ salary was too high and that her actions as interim CEO have not benefited nurses. Speakers were given two minutes instead of the usual three, as there were more than six speakers.
Gerry Wright read a letter written by her husband, David Wright, who was opposed to the appointment.
“While we applaud Mary for stepping up to the helm of this perilous situation, it is you, the board, that is in charge of the ship.”
Diane Beck, a registered nurse and chief nurse representative for the California Nurses Association, strongly disagreed with the CEO contract.
“As nurses who are extremely concerned about the well-being of our community and patients at Hazel Hawkins Memorial Hospital, we are appalled and outraged that the San Benito Health Care District has chosen at this time to, not only consider elevating Mary Casillas’ status from interim to permanent CEO, but to offer a salary that would amount to a indefensible greater than 30% increase to her salary since her tenure began.”
Casillas was first elected to the Board of Directors in November 2018 and resigned in 2022 to take the chief operating officer position. In November 2022 she was appointed interim CEO after Steve Hannah was terminated. In January 2023, BenitoLink reported Casillas’ salary was $310,500 but was participating in a 10% salary reduction which meant she was receiving $283,500. Nurses had also postponed their 3% raise for 90 days in consideration of the district’s financial crisis.
Toni Macias, a representative with the National Union of Health Care Workers (NUHW), said that under Casillas employees have not seen a raise but have seen their insurance premiums doubled and had their paid time off reduced or frozen. Macias said all management under Casillas saw pay increases during this time.
Though Beck and two other hospital nurses spoke against the agreement, five hospital staff voiced support for the agreement.
A written statement by Dr. Michael Bogey was read by Director of Medical Staff Services Brittney Slibsager, who also spoke in support of the agreement.
“Firstly, she steered us throughout turbulent financial times and has brought us from a financial crisis onto more firm ground,” his statement read. “Secondly, her work ethic is excellent. She’s always available, ready to assist and consistently putting in long hours. This is the dedication that we need for continued progress.”
Bogey went on to state that Casillas genuinely cares about the hospital’s mission.
Hazel Hawkins Hospital Foundation Director Liz Sparling also spoke highly of Casillas.
“Mary inherited this fiscal emergency and has done an excellent job leading the hospital where it is today,” Sparling said. “I report directly to Mary and she is an excellent boss. She is fair, she leads her team, she listens and she holds me and others accountable.”
The hospital, which is managed by the health care district, declared a fiscal emergency on Nov. 2, 2022 and filed for Chapter 9 bankruptcy May 23, 2023, stating the hospital would run out of cash on hand by September.
On Dec. 4, the district met in bankruptcy court after the CNA and NUHW questioned the district’s eligibility to file for bankruptcy protection.
The hospital, unions and the public await the decision of Judge Stephen L. Johnson. A decision is expected at the end of January or early February.
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