Supervisor Janet Nguyen's presentation on Orange County Grand Jury report

7/29/2019 Supervisor Janet Nguyen's presentation on Orange County Grand Jury report.

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Supervisor Janet NguyenOrange County Board of Supervisors, First District

Press ConferenceJanuary 30, 2013

10:00 a.m.


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ALLEGATION: Board Chairman was removed from the Board during a SpecialMeeting of which neither he nor the other Board member mentioned in theanonymous letter was notified.

FACT: Despite claiming that these two board members "did not know" about themeeting, they were in attendance and were notified of the meeting.


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ALLEGATION: Board Chairman was removed from the Board during a Special Meeting of whichneither he nor the other Board member mentioned in the anonymous letter was notified

FACT: No one was REMOVED or REINSTATED because only the Board of Supervisors has theauthority to appoint and/or remove a person from the CalOptima Board. Additionally it needs to

be done at a BOS meeting and properly noticed on the agenda.


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ALLEGATION: CalOptima Board approved a different outside legal firm tolook into the legality of the allegations made against the Board Chairmanand three other Board Members

FACT: Board actually voted to amend the contract of the same outside

legal firm


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ALLEGATION: Ordinance change added more Providers to CalOptima Board

FACT: Provider seats remained at 3 and proportionately decreased from 33% to 27% inoverall representation.

Seats of previous and current board

Previous Board (2011) - 9 members Current Board (2012) - 11 members

Orange County Board of Supervisors

Representative

Orange County Board of Supervisors

Representative

Director, Orange County Health Care

Agency

Director, Orange County Health Care

Agency

Provider: Physician/Physician

Network/Hospital Representative

Provider: Physician



Provider: Physician Network



Provider: Hospital Representative

Consumer/Non-Profit Consumer/Non-Profit

Consumer/Non-Profit Consumer/Community Clinic

Consumer/Non-Profit Consumer

For-Profit/ Non-Profit For-Profit

Director, Orange County Social Services

Agency

General Public Representative


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ALLEGATION: Lobbyist rewrote the County Ordinance that changed thecomposition of the CalOptima Board

FACT: This is outright wrong, the Grand Jury Mixed Up Two Amendments

March 2011-CaliforniaHealth Benefit ExchangeAmendment to OC Health Authority Ordinance

(Lobbyist involved)

December 2011-CalOptima Board of DirectorsAmendment to OC Health Authority Ordinance

(LobbyistNOT involved)


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February 17, 2011From: Gary Crockett, CalOptima Legal Counsel

To: Paul Albarian, Deputy County Counsel

April 05, 2011From: Gary Crockett, CalOptima Legal Counsel


April 11, 2011 at 5:57 pmFrom: Paul Albarian, Deputy County Counsel

To: Lobbyist

April 7, 2011From: Gary Crockett, CalOptima Legal Counsel


April 11, 2011 at 5:20 pmFrom: Paul Albarian, Deputy County Counsel

To: Lobbyist

ALLEGATION: Lobbyist rewrote the County Ordinance that changed thecomposition of the CalOptima Board

FACT: The collaboration with Lobbyist took place in March 2011 for the HealthBenefit Exchange NOT composition of CalOptima Board Composition


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ALLEGATION:Lobbyist rewrote the County Ordinance that changed the

composition of the CalOptima BoardFACT:Amendment regarding Health Benefit Exchange in collaborationwith Lobbyist was PUBLIC.

Page 1 Page 2

Prior to finalizing the proposed ordinance language,

discussions were held with both Hospital Association ofSouthern California (HASC) and CalOptima representatives in

an effort to address each entitys specific concerns and to

create amendments that were also in line with the directives

of the Orange County Board of Supervisors.

ALLEGATION: Lobbyist rewrote the County Ordinance and changedthe composition of the CalOptima Board

FACT: False, in a public collaboration, lobbyist and CalOptima helpeddraft an amendment to the Ordinance to address the Health Benefit

Exchange.


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March 2007$1000

December 2007$1100

December 2007$500

September 2008$250

August 2009$500

April 2010$333

September 2011$400

March 2012$317

ALLEGATION: Received Personal/Political Gains as a result ofOrdinance change.

FACT: California Hospital Association has been a donor since 2007,and accounts for less than 0.5% of overall donations receivedthroughout the years. California Hospital Association donates millionsto other Elected Officials in Orange County and throughout the State.

All campaign financial reports are public and available for review.

Donations from California Hospital Association


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Wasteful Spending of Taxpayers Dollars


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PAID $1 MILLION ANNUALLY FOR VACANT SPACE after purchasing a $30.2

million office building, while still committed to a 4-year lease for an emptybuilding

SPENT $6.6 MILLION TO LEASE AND REPAIR A BUILDING, assessed at only $1.1million

WHILE POTENTIALLY FACING $100 MILLION IN STATE/FEDERAL CUTS, GAVE$250,000 BONUSES TO 12 EXECUTIVES, including $66,000 for the former CEO

whose annual compensation totaled $515,743.00, making him the highest paidgovernment CEO in Orange County

SPENT $43,000 MONTHLY FOR ONE TEMPORARY CONTRACTED POSITION HANDED OVER $774,000 FOR GYM MEMBERSHIPS, which wentunused,

resulting in staff wrongfully lowering performance standards to renew thecontract without Board approval

TWO FORMER CHAIRMEN INAPPROPRIATELY SPENT APPROXIMATELY$90,000 worth of staff time for non-CalOptima business

CONTRACTED A PUBLIC RELATIONS FIRM FOR APPROXIMATELY $20,000AND ULTIMATELY GAVE THEM $350,000 without an open bid process and Boardapproval

INAPPROPRIATELY PAID 40% OF VENDORS SAMPLED, WITHOUT

CONTRACTS, as revealed by Internal Audit

Examples of mismanagement, waste of taxpayer dollars and lackof transparency by previous leadership


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$1 MILLION/YEAR for VACANT Office Space

Deficit made by purchase

of $30.2 M Building inJanuary 2011

PAID $1 MILLION ANNUALLY FOR VACANT SPACE on a 4-yearlease after purchasing a $30.2 million office building, thispurchase caused a net current account deficit


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County Assessed at

$1.1 MILLION

Under Construction

SPENT $6.6 MILLION TO LEASE AND REPAIR A BUILDING,assessed at only $1.1 million


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ORIGINAL CONTRACT - SEPTEMBER 2008

AMOUNT: $20,910.00

7TH AMENDMENT TO CONTRACT - MAY 2011AMOUNT: $362,428.00

CalOptima and CONSULTANT mutually

agreethat the contract shall not exceed TwentyThousand Nine Hundred Ten Dollars ($20,910)

CalOptima and CONSULTANT agree to increase

the maximum cumulative paymentto a total ofThree Hundred Sixty-Two Thousand Four

Hundred Twenty-Eight Dollars ($362,428.00)

Contracted a Public Relations Firm for $20,910 and ultimately gavethem $362,428 without an open bid process and Board approval


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INAPPROPRIATELY PAID 40% OF VENDORS SAMPLED, WITHOUTCONTRACTS, as revealed by an internal audit


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While facing $100 million in State/Federal cuts, 12 executiveswere given $250,000 in bonuses, including $66,000 for theformer CEO, whose annual compensation totaled $515,743.00,

making him the highest paid government CEO in Orange County.


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The new Board has ensured that approximately $0.95out of every dollar received by CalOptima is spent onhealthcare

Satisfaction ratings for the agencys largest patientpopulation increased to over 80% For the first time since 2007, patients have more choices

for physicians and specialists The current Board has over 100 years of combined

experience in healthcare, and expertise in finance andlaw

Maintains Superior rating for Healthy Families

program, NCQA Commendable accreditation and HEDIS

Honorable Mention Quality Award

CalOptima is NOT ImplodingSeveral Recent Achievements


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20 years of

healthcare

experience

20 years of

healthcare

experience

13 years of

healthcare

experience

CalOptimas Highly Experienced

Current Executive Management


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Press ConferenceJanuary 30, 2013

10:00 a.m.

Documents

Supervisor Janet Nguyen's presentation on Orange County Grand Jury report