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For the second time in eight days, the San Benito Health Care District changed the ballot question for its measure asking voters to approve a plan to lease and sell the assets of Hazel Hawkins Memorial Hospital to Insight Health System. Members of the public have voiced frustration over the process as well as opposition to the proposed transaction.
The board, which governs Hazel Hawkins Memorial Hospital, also approved a revised term sheet agreement with Insight Health Foundation of California, Inc.
Health care district legal counsel Heidi Quinn said the changes in the ballot language address concerns about the phrase “option to sell” versus the “option to purchase,” as well as a citizens’ oversight component.
Regarding the term sheet, or principal terms of the proposed transaction, Quinn said it was updated to clarify the understanding of the parties.
“These are not new terms,” she said. “This is what the parties understood as contemplated by the transaction.”
District CEO Mary Casillas told BenitoLink there is no timeline for when the final agreement will be available but that the goal was to have it done before Nov. 5 general election. Asked if the agreement is legally required to be completed by Nov. 5, she directed the question to Quinn, who said there was no legal requirement and that the law was very general in this regard. She referenced Health and Safety Code section 32121(p), which states in part, “shall, by resolution, submit to the voters of the district a measure proposing the transfer.”
The decision comes two days after the San Benito County Board of Supervisors directed county counsel to pursue a legal challenge against the health care district’s ballot measure.
At the supervisors meeting, San Benito County District Attorney Joel Buckingham, commenting as an individual, voiced concern about the measure’s ballot language and said he put his concerns in a letter to the health care district.
Health care district Director Jeri Hernandez said the ad hoc committee—herself and Director Davon Pack—met Aug. 7 to review Buckinham’s concerns and the action taken by the supervisors.
“While we both feel the ballot measure was legally sufficient, the board is listening to public comments and wants to make sure the public understands the proposed transactions” she said. “The board has no intentions to mislead or confuse the public.”
The ballot measure now reads, “Without increasing taxes and to continue providing local access to emergency medical care, surgery, radiology, long-term care, mother/baby care, clinic and physician services at Hazel Hawkins Memorial Hospital, shall San Benito Health Care District’s measure be adopted, leasing (with lessee option to purchase) certain District real property assets, and selling substantially all other District assets, to nonprofit Insight Health Foundation of California, Inc. (or another qualified buyer) for fair market value, determined by independent appraisal, providing local oversight and continued hospital services in San Benito County?”
It previously read, “Without increasing taxes and to continue providing local access to lifesaving emergency medical care, surgery, radiology, long-term care, mother/baby care, clinic and physician services at Hazel Hawkins Memorial Hospital, shall San Benito Health Care District’s measure be adopted, leasing (with option to sell) certain District real property assets and selling substantially all other District assets to nonprofit Insight Health Foundation of California, Inc. (or another qualified buyer) for fair market value, determined by independent appraisal, ensuring citizens’ oversight and continued hospital services in San Benito County?”
Four residents spoke against the transaction and criticized the way the district has handled the ballot question.
Mary Zanger said it wasn’t hard to come up with a fair question.
“It seems to me that the simplest question would be, do you want to sell or do you want to keep the hospital?” she said.
Gregory Swett said it was “embarrassing” for the health care district board to not get the language correct.
“You have 48 hours before you have to get this actually right,” he said. “So you got one more shot.”
He was referring to the Aug. 9 deadline to submit the ballot language to the County Elections Office. The 10-day period in which the language can be challenged in court begins Aug. 10.
The changes were approved in a 4-0 vote with Director Josie Sanchez absent.
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