El Camino Healthcare District (ECHD) Role
The ECHD is organized and operates pursuant to state law like every other public agency. It is governed by a five member Board of Directors who stand for election every four years and must reside in the District.
The ECHD Board is responsible for ensuring the District’s mission is accomplished and for providing public oversight of District’s business affairs.
Relationship with El Camino Hospital
The ECHD maintains oversight of El Camino Hospital by:
- Approving the election of the Directors of the El Camino Hospital Board
- Approving the selection of the El Camino Hospital CEO
- Approving annual budget of El Camino Hospital and District.
- Regaining assets of El Camino Hospital at the end of the lease.
The District owns the land (not the El Camino Hospital building) and leases the land to El Camino Hospital. The ECHD's elected Board, state laws and board policies protect the assets.
The ECHD has no employees and pays no salaries. The District Directors, upon a vote of the District Board, may also sit on the Hospital Board; however, it is not required that they be members of both boards.
In addition to providing oversight of El Camino Hospital, the District works to identify and address unmet community health needs through its Community Benefit Program.
The District annually issues a joint Community Benefit Report with El Camino Hospital to provide transparency around how funds are used to support District resident’s health and wellness.
El Camino Hospital
El Camino Hospital is a 501 (C)(3) not-for-profit, independent hospital with 3,000 employees. Its mission and goals are community focused and it is a community asset available to patients from any community.
El Camino Hospital leases the land from the ECHD and maintains the building. The El Camino Hospital Board is appointed by the ECHD Board.
In the 1980s, the California legislature determined that the District structure made it difficult for Health Care District hospitals to compete effectively with for-profit and nonprofit healthcare organizations threatening their very existence.
The Legislature enacted Health and Safety Code 32121(p), which gave all Health Care Districts the latitude to engage in certain transactions with a nonprofit corporations and allowed the Hospital to transfer property, equipment and other assets relating to the operation or maintenance of El Camino Hospital to the 501(c)(3).