West Contra Costa Healthcare District History
The West Contra Costa Healthcare District (the “District”) struggled financially for decades, experiencing increasing costs, declining reimbursements, and growing service demand from uninsured and underinsured populations. After emerging from bankruptcy in 2006, the District fell deeper into debt. In 2015, it closed its hospital, Doctors Medical Center, which was a full-service acute care facility with 124 general acute care beds.
On October 20, 2016, the District again filed for bankruptcy under chapter 9 of the Bankruptcy Code. Through the bankruptcy, the District sought the bankruptcy court’s approval of a plan that allowed the District to modify its debts and on-going costs, emerge from bankruptcy, and begin the process of repaying creditors. The bankruptcy court approved the District’s Plan of Adjustment on January 2, 2018, allowing the District to repay certain creditors over a series of years.
Senate Bill 522 (Glazer)
Senate Bill 522 was introduced by Senator Steve Glazer and proposed the dissolution of the existing elected board of directors of the District, effective January 1, 2019, and required that the Board of Supervisors of the County, at its election, either serve as the District’s governing board or appoint a governing board for the District, as specified. Governor Brown signed the bill into law on July 18, 2018.
Board of Supervisors as Governing Board
On September 11, 2018, the Board of Supervisors determined that it would serve as the governing board of the District effective January 1, 2019. Government Code section 54954(a) requires local agencies (including special districts) to provide for the time and place for holding regular meetings.
On January 15, 2019, the Board established the District's regular meeting schedule consistent with that of the Board of Supervisors' meeting schedule. In addition, the Board appointed the Executive Director, Secretary and Treasurer of the District. Specifically, the resolution appoints the County Administrator as Executive Director, the Chief Assistant Clerk of the Board as Secretary and the Auditor-Controller as Treasurer of the District.
Establishing a Finance Committee and Making Appointments
Today's action requests that the Board establish a Finance Committee of the District to review and make recommendations about the allocation of community benefit funds made available during the bankruptcy proceedings for health related services within the District area and other financial matters as needed. Since District I and District V represent the area within the WCCHD, I am recommending that Supervisor Glover and I be appointed to the Finance Committee to bring funding recommendations back to the full Board for approval.
The District will not have a Finance Committee established to review and make recommendations regarding allocation of community benefit funds or other financial matters that may arise in the District area.