SANTA CLARA COUNTY IS FORECASTING additional stress on its public health care system — the second largest in the state — if the only rural hospital in neighboring San Benito County closes.
A January report from Santa Clara Valley Healthcare estimates the closure of Hazel Hawkins Memorial Hospital — a 25-bed facility in Hollister — would strain the county’s hospital system because the next closest emergency department is St. Louise Regional Hospital in Gilroy. St. Louise already operates at nearly two times the county’s average of emergency department visits, officials said.
If Hazel Hawkins were to close, the report warns emergency department visits at St. Louise would rise to approximately 2.4 times the county average. County officials estimate this would mean 11,163 additional visits to St. Louise’s emergency department in a year, totaling 61,118. The hospital would then require seven to nine new emergency department stations and increased staffing, according to the report.
“Without additional (emergency department) capacity, (St. Louise) would be expected to experience significant crowding, longer wait times and throughput challenges,” the report reads.
While representatives for Hazel Hawkins said the hospital is fiscally sound, Santa Clara County leaders note that rural hospitals have been facing closures following the passage of H.R. 1, a federal spending bill that has resulted in billions of dollars in losses for hospital systems across the U.S., including Santa Clara County. “Hospitals like Hazel Hawkins have been challenged for a number of years and H.R. 1 makes that much much worse,” County Executive James Williams told San José Spotlight. “Rural hospitals rely more heavily on Medicare and Medicaid patients.”
San Benito County residents currently rely on Santa Clara County’s hospital system, with Valley Medical Center in San Jose serving as a level 1 trauma center and one of just three burn centers between Los Angeles and the Oregon border.
Hazel Hawkins remains operational, currently offering 18 emergency department stations, as well as obstetric, imaging, rehabilitation, and general medical-surgical services. However, the hospital has faced financial uncertainty for years, nearly reaching a critical point last August with the collapse of a lease-to-purchase agreement with Insight Health Partners. The hospital had previously sought a buyer after filing for bankruptcy last year.
Hospital spokesperson Marcus Young stated, “For us, right now, we do not foresee any cuts to our current operations, and our financial position is the most solid we have seen for more than 10 years.” He added, “In other words, rural health care is still in crisis in California and across the nation.”
Rachel Ruiz, a board-certified pediatric gastroenterologist at Valley Medical Center and leader of the Valley Physicians Group, expressed concern for patients. “We’re going to have increased morbidities, mortality and delayed care for our patients if they lose this hospital in San Benito County,” she told San José Spotlight.
The situation echoes a previous threat to regional healthcare capacity when Regional Medical Center in 2024 faced potential service cuts. Santa Clara County purchased Regional Medical Center for $315 million during a budget deficit and revived its trauma, stroke, heart attack, and maternity services.
In January, Santa Clara County leaders announced the rollout of cardiology care at St. Louise and Valley Health Center in Morgan Hill, aiming to improve access to medical services in South County.
Frequently Asked Questions
What impact would the closure of Hazel Hawkins have on St. Louise Regional Hospital?
The closure of Hazel Hawkins could result in approximately 11,163 additional emergency department visits to St. Louise Regional Hospital in a year, totaling 61,118 visits. This would likely require the hospital to add seven to nine new emergency department stations and increase staffing.
What is contributing to the financial challenges faced by rural hospitals like Hazel Hawkins?
Santa Clara County leaders point to H.R. 1, a federal spending bill that has resulted in billions of dollars in losses for hospital systems across the U.S., as a significant factor. Rural hospitals likewise rely more heavily on Medicare and Medicaid patients.
Has Santa Clara County intervened to save a hospital before?
Yes, in 2024, Santa Clara County purchased Regional Medical Center for $315 million after it faced potential service cuts, and subsequently revived its trauma, stroke, heart attack, and maternity services.
How might communities balance the financial realities of rural hospitals with the require to ensure access to essential healthcare services?
