To: Board of Supervisors
From: Anna Roth, Health Services Director
Report Title: Add One Deputy Director of HS-Exempt and related actions
RECOMMENDATIONS:
1. Adopt Position Adjustment Resolution No. 26210 to add one Deputy Director of Health Services - Exempt (VCB4) position (exempt-unrepresented) at salary plan and grade level B85-1000 ($22,455 - $27,294);
2. Approve a 7.5% differential for the Deputy Director of Health Services when assigned to the single position Chief Financial Officer role; and
3. Direct the Health Services Department to engage an executive recruiter to conduct a nationwide recruitment for a Chief Financial Officer for the Health Services Department.
FISCAL IMPACT:
This action will result in an annual salary and benefit cost of $465,209 at the entry step level and $565,460 at the top step and will be funded by Hospital Enterprise Fund I. In FY 2023-24, approximately $374,000 in staffing transition costs will be incurred. Salary and benefit costs will be offset in the current year and subsequent years through a combination of contract staff savings and external revenues. The current agreement with Pacific Medical will be eliminated as part of the transition from a contracted Health Chief Financial Officer to a permanent County position. This will result in annual contract savings of approximately $596,000 which will be used to offset the ongoing costs of this newly created position. This action will have no net impact on the General Fund.
BACKGROUND:
For the past three decades, the Contra Costa Health Department Finance Division has relied on contract staff to manage its operations. However, impending retirements within the contract staff necessitate the establishment of County positions and the initiation of the recruitment process to fill these vacancies. The primary objective is to ensure a seamless transition by maintaining overlapping staffing coverage to facilitate knowledge transfer.
Over the years, the complexity of fiscal reporting and management requirements has significantly increased due to program developments and changes in healthcare service funding. In the current fiscal year, Contra Costa Health's total budget stands at approximately $2.8 billion. To ensure the department's financial stability during this transition, it is imperative to establish a robust and sustainable leadership structure within the Contra Costa Health Finance Division.
Given the complexity of managing a $2.8 billion budget and overseeing a staff of 150 professionals, technicians, and clerical employees, the department plans to take a phased approach to transitioning the department’s financial leadership structure. This first phase will consist of adding one Deputy Director of Health Services - Exempt, who will serve as the Health Chief Finance Officer. The department has updated the job specification for this classification to include finance responsibilities, which will expedite the hiring process. Upon approval, the department will initiate the recruitment process for the Chief Financial Officer. The department expects the newly hired Chief Financial Officer to participate in the restructuring of the department’s financial leadership, which may include engagement with a consultant to conduct a organizational study of the department’s financial operations. Future position requests will be brought to the Board of Supervisors to ensure the department’s financial operations are appropriately staffed.
The Deputy Director/Health Chief Finance Officer will be a member of the executive leadership team, reporting directly to the Health Director. Responsibilities will include planning, organizing, and directing the development of the Contra Costa Health budget, as well as overseeing its financial operations. Additionally, the position will provide high-level support and guidance to the Health Director to optimize revenue and maintain the department's fiscal health. This role will also manage financial planning, fiscal policies, control finance activities, and coordinate with the Enterprise, Special Districts, and Health Service Area budgets.
Furthermore, the position will oversee capital project planning and financing while collaborating with the County Finance Director and County Administrator’s Office on financial matters, including budget development.
CONSEQUENCE OF NEGATIVE ACTION:
Failure to promptly establish key leadership positions within the Finance program will adversely affect Contra Costa Health's overall operations.
☒Recommendation of the County Administrator
☐ Recommendation of Board Committee
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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. |
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ATTESTED: |
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Monica Nino, County Administrator and Clerk of the Board of Supervisors |
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By: |