Date: 05/13/2015
Final
Update & Discussion of the CEO Search & Board Vacancies
HEALTH CARE EXCHANGE
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09:10 AM -- Update on and Discussion of the Chief Executive Director Search and Possible Board Vacancies
Sharon O'Hara, Chair, Connect for Health Colorado Board of Directors (the board), Steven ErkenBrack, Member, Connect for Health Colorado Board of Directors, and Kevin Patterson, Interim Chief Executive Officer (CEO), Connect for Health Colorado, came to the table. Ms. O'Hara told the committee that the board decided to continue the management of the exchange with an interim CEO in order to maintain continuity during preparation for the third open enrollment period. She introduced Kevin Patterson who has been appointed as the new interim CEO.
Mr. ErkenBrack spoke about the search for a CEO to oversee the exchange. He told the committee that the board had identified a list of seven skill sets that the ideal candidate would posses knowing that it would be difficulty to find an individual will all seven skills. He highlighted the difficulty the board experienced trying to find a permanent CEO. He discussed the board's decision to put the search for a permanent CEO on hold and select an interim CEO. He explained that the board selected Kevin Patterson as the interim CEO because he was well qualified to fill the position. He also pointed out that, of the nine voting members on the board, five board members have terms that will end in July. Mr. ErkenBrack stated that the current board thought that since the CEO works closely with board, the new CEO should be selected by the board members that will be in place after July. Mr. ErkenBrack complimented Gary Drews performance as the interim CEO.
Mr. ErkenBrack responded to questions from the committee. He clarified the seven skill sets that the board was looking for in a CEO. He stated that the ideal candidate is someone who is knowledgeable of consumer issues, insurance operational issues, Medicaid procedures, information technology, finance management, internal organizational structure, and public accountability. He reiterated that the board is suspending the search for a CEO which will allow new board members to participate in the selection of the new CEO.
09:15 PM
In response to questions from the committee, Mr. ErkenBrack discussed the membership of the board and the changes that may occur in July 2015 when five of the voting members' terms expire and the continuity between the existing board and the board that will be appointed. Ms. O'Hara also responded by stating that the board has participated in training and board development activities which are expected to continue. She also discussed the other senior management positions within the exchange that need to be filled and told the committee that these positions are not appointed by the board, but rather the CEO selects the individuals to fill these positions. Mr. ErkenBrack responded to questions about the deliberation by board members to identify a CEO.
09:30 PM
Continued committee discussion and questions focused on the salary associated with the CEO position and the rate of employee turnover at the exchange. Ms. O'Hara responded by explaining that the board hired a compensation firm to conducted a salary survey to identify a competitive salary for the CEO. She stated that the board selected a salary at the lower end of the survey range. Ms. O'Hara told the committee that she would provide the list of the organizations that were surveyed as part of the salary survey. Committee discussion followed about the appropriate amount of compensation for a CEO of a public entity.
09:46 AM
Committee questions ensued about whether the board was effective as a part-time volunteer board and whether there was a need for statutory changes to alter the board structure or the exchange. Mr. ErkenBrack spoke about the structure of the different state exchanges. He agreed that a part-time volunteer board does face some challenges but also has advantages. He stated that the Colorado exchange is unique from other states' exchanges in that it allows individuals to select plans by physician participation or by formulary and the board is the only board with carriers as members. He suggested that it was a good idea to look at the structure of exchanges in other states.
09:54 AM
Ms. O'Hara responded to questions about which health insurance carriers were surveyed for the CEO salary survey by offering to collect information about whether health insurance carriers were surveyed and report back to the committee.
09:56 AM
In response to committee comments and questions about whether the the board should simply look at the short term needs of the exchange and the inherent difficulties associated with trying to hire a CEO candidate when the future of the exchange appears uncertain, Mr. ErkenBrack pointed out the advantages to exchange employees of having a permanent CEO rather than an interim CEO. Committee discussion continued regarding the need for the exchange to have a solid business plan and work plan.
10:04 AM
Mr. Patterson introduced himself to the committee. He spoke about his previous experience working in the public and private sectors. He told the committee that his previous work experience will benefit him in his new role as CEO. He told the committee that he believes in the mission of the organization and that his priorities are to address concerns about the customer experience and hire a chief financial officer. Mr. Patterson addressed many of the concerns raised by the committee during the previous discussion with Mr. ErkenBrack and Ms. O'Hara.
10:12 AM
In response to questions about the difficulty customers have experienced with the exchange and the need for a chief information officer, Mr. Patterson responded that he is focusing on getting all parties involved in the system to have the same priority list for improving the system, and then he will focus on adding the technology to address these priorities. He discussed his experience updating the Colorado Benefits Management System in a similar way.
10:14 AM
Committee discussion continued about the need to focus on the information technology problems experience by the exchange. Mr. Patterson responded that he is familiar with many of the IT vendors and that he is confident that he will be able to work with these vendors. Committee discussion followed about the increase in Medicaid enrollments.
Mr. Patterson discussed his approach to filling vacancies for executive positions and addressed options for restructuring the Medicaid eligibility determination process and the possibility of receiving reimbursement from the Centers for Medicare and Medicaid Services (CMS) for the work exchange employees do to identify individuals who are eligible for Medicaid. He also responded to concerns about compensation for exchange executives and stated that salary is one consideration when hiring individuals, but it is necessary to find people who believe in the mission of the organization.
10:24 AM
Committee members commented on improving the technology of the exchange prior to the next open enrollment period.