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CalOptima: A Public Agency in Turmoil

February 17, 2012

I’m not quite sure when it started, but many observers knew something was wrong when the Orange County Board of Supervisors passed an ordinance making CalOptima the only Medi-Cal agency in California forbidden to participate in the California Health Benefits Exchange, the agency established to manage health insurance for newly insured individuals and small businesses under the 2010 federal health care reform law.  Shortly thereafter, a successful movement started to pass another ordinance to change CalOptima’s board of directors.  Then, the agency’s top managers started to leave in succession for other jobs, culminating with the recent resignation of Richard Chambers, its CEO.

Now a new controversy has arisen.  The agency’s board chairman has been accused of “self-dealing,” a possible violation of state law and rules issued by the Fair Political Practices Commission.  I will not comment on the veracity of the accusation or the content and nature of evidence behind the accusation.  For that you can read Payers and Providers and the Voice of OC. This situation does, though, make me thankful for the tedious drilling I received while serving on the L.A. Care Health Plan board (the Los Angeles version of CalOptima) to “avoid the appearance of impropriety or conflict of interest, even in circumstances where neither exists.”  (Thank you Howard Kahn.)

My only concern is that neither the medical services provided to the vulnerable patients who rely on CalOptima nor the payments to doctors and hospitals serving them be disrupted by any dysfunction caused by the continuing turmoil.

Lastly, I need to disclose that HASC and the hospitals serving the communities of Orange County fully support the proposal and the efforts of CalOptima that are cited in this latest controversy–specifically, to make improvements to Orange County’s health care delivery system.

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  • Medicare, Medicaid & the Uninsured
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Blog entry
February 17, 2012
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