The Orange County Board of Supervisors voted this week to approve revisions to the County’s CalOptima Ordinance that designate a permanent seat for hospitals on the CalOptima Board of Directors, give hospitals a voice in the selection of their representative to the Board, and clean up and clarify conflict of interest provisions to help minimize the need for recusals by provider representatives. At the request of HASC’s Orange County hospitals, HASC coordinated communications in support of these changes.

In addition to the above-noted provisions, the Ordinance revision retains the provider seat designated for a physician representative and specifies that the third provider seat will be designated for a representative of a contracted health network or IPA. The three existing consumer seats are retained and qualifications for these seats are more specifically defined. Two new members are added to the existing nine-member board: the Director of the County’s Social Services Agency and an at-large, public member.

With these revisions, the composition of the CalOptima Board of Directors more closely parallels those of most of the other County Organized Health Systems and Local Initiatives in the HASC region. Supporters of the revisions, including HASC member hospitals, believe the revisions will lead to closer collaboration between CalOptima, its provider community, and representatives of the members served by the agency.

Supervisor Nguyen, who represents the Board of Supervisors on the CalOptima Board, championed the proposal. It was supported by Chairman of the Board Bill Campbell and Supervisor Pat Bates. Chairman Campbell deftly managed the discussions. Supervisor Bates boldly and articulately stressed the need for the proposed changes. Supervisors Moorlach and Nelson voted no.

The proposal next moves to the Dec. 13 Board of Supervisors agenda for second reading and formal adoption. It is expected to take effect on Jan. 12.

Also at CalOptima, Lee Penrose, CEO at St. Jude Medical Center, was sworn in as a CalOptima Board Member at the agency’s all-day strategic planning session last week. Penrose was appointed to the post by the Board of Supervisors on Nov. 8 after a selection process that included a unanimous endorsement by hospital CEOs in Orange County, a support letter from HASC, a unanimous nomination by the Board of Supervisors’ selection committee, and a unanimous vote by the Board of Supervisors.