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HomeMy WebLinkAboutMINUTES - 05102011 - SD.9RECOMMENDATION(S): 1. ACCEPT report from the Health Services Director on the progress made by the West Contra Costa Health Care District ("District") to implement changes to its governance structure. 2. CONFIRM that the Auditor may make the next two progress payments to the District as provided in the Property Tax Transfer Agreement approved on April 5, 2011. FISCAL IMPACT: No fiscal impact - report only. BACKGROUND: On April 5, 2011, the Board held a hearing on a $10 million property tax transfer agreement with the West Contra Costa Healthcare District (the "District"). The approved board order from the April 5 hearing is attached hereto as Attachment A and contains the background APPROVE OTHER RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE Action of Board On: 05/10/2011 APPROVED AS RECOMMENDED OTHER Clerks Notes: VOTE OF SUPERVISORS AYE:John Gioia, District I Supervisor Gayle B. Uilkema, District II Supervisor Mary N. Piepho, District III Supervisor Karen Mitchoff, District IV Supervisor Federal D. Glover, District V Supervisor Contact: Dorothy Sansoe, 925-335-1009 I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown. ATTESTED: May 10, 2011 David J. Twa, County Administrator and Clerk of the Board of Supervisors By: June McHuen, Deputy cc: Robert Campbell, Auditor-Controller SD. 9 To:Board of Supervisors From:David Twa, County Administrator Date:May 10, 2011 Contra Costa County Subject:Report from Health Services Director on Status of Doctors Medical Center Governance Change BACKGROUND: (CONT'D) information and the recommendations provided for at the hearing. The Board approved the transfer agreement and the related recommendations. As a result of the approval, an initial tax transfer amount of $2 million was made to the District on April 6, 2011. The Property Tax Transfer Agreement requires the District demonstrate progress in reorganizing its governance structure before additional revenues are transferred to the District. The Health Services Director is satisfied that sufficient progress has been made by the District and that the final two scheduled transfers under the Property Tax Transfer Agreement of $2 million on May 16, 2011, and $6 million on May 31, 2011 should be made. On April 29, 2011, the District Board of Directors held a special meeting for the purpose of modifying the District's by-laws to satisfy the requirements of the Property Tax Transfer Agreement and the County. The District Board of Directors approved the formation of a committee of the District (the "Governing Body"), which meets the County's request for governance changes. The new Governing Body committee consists of eleven voting members appointed in accordance with the bylaws of the District and with the following: (a) Five District representatives that are the current members of the District Board of Directors; (b) Four County representatives who shall be: (i) the District One representative of the Board of Supervisors, (ii) the County Health Services Officer or his/her designee; (iii) the County Public Health Director or his/her designee; and (iv) the County Health Services Chief Financial Officer or his/her designee; and (c) Two representatives of the medical staff of Doctor's Medical Center nominated by the District's Medical Executive Committee (the "MEC") and approved by a majority of the remainder of the Governing Body. The MEC shall nominate three medical staff members and the Governing Body, excluding existing medical staff representatives, shall select two as members and designate the third as an alternate. The two medical staff representatives of the Governing Body shall serve one-year terms, or so long as they are not succeeded by another nominee of the MEC approved by the remainder of the Governing Body. The Governing Body will have overall administrative and professional responsibility for the Hospital as the governing body of Doctors Medical Center. A copy of the District's amended and restated bylaws is attached hereto as Attachment B. The Health Services Department will return to the Board with a recommendation to approve the dissolution of the Doctors Medical Center Management Authority. CONSEQUENCE OF NEGATIVE ACTION: If the Board should find that Doctor’s Medical Center has not made progress in changing its governance structure, it would have the ability to declare that the County should not provide further payment. In that case, Doctors Medical Center may be subject to closure or severe service interruption. CHILDREN'S IMPACT STATEMENT: Not applicable. CLERK'S ADDENDUM Speaker: Eric Zell, West Contra Costa Hospital District.  ATTACHMENTS Attachment A Attachment B