The American Advanced Management (AAM) has reached an initial letter of intent (LOI) with San Benito Health Care District for Hazel Hawkins Memorial Hospital (HHMH).

The LOI will lay the foundation for talks regarding a strategic alliance.

It suggests the concept of AAM entering a 'lease-to-own' arrangement for the District's assets. This arrangement will involve leasing for several years before full ownership.

The LOI marks the initial phase of a detailed and public process. The District Board will review it at its upcoming meeting, conduct due diligence, and negotiate more terms for this potential tie-up.

AAM plans to collaborate with the local medical team to introduce additional specialities and services to HHMH. Cardiology and inpatient dialysis are among the identified areas, which are expected to retain more local patients.

Hazel Hawkins interim CEO Mary Casillas said: "When we started this process in December, our goals were simple: do all we can to stabilise the finances of the district while maintaining quality healthcare for the community; find a partner or buyer who understood the unique needs of our community; and find a partner who possessed the resources to guarantee a continuum of care delivery for the future needs of our County."

American Advanced Management was founded in 2012, marked by the launch of its inaugural hospital, Central Valley Specialty.

This general acute care speciality hospital is located in Modesto, California, US.