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 District’s mission is accomplished and for providing public oversight of District’s business affairs.
Relationship with El Camino Hospital
The ECHD maintains control of El Camino Hospital by:
- Owning land hospital is on and specifying use.
- Appointing members of El Camino Hospital board.
- Approving annual budget of El Camino Hospital and District.
- Regaining assets of El Camino Hospital at end of lease in 2039.
The ECHD 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.
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 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).
ECHD and El Camino Hospital Structure
The El Camino Healthcare District (ECHD) is a separate governmental entity in and of itself, formed pursuant to The Local Health Care District Law (California Health and Safety Code Sections 32000 et seq.). The District is governed by its five elected Board members, and ultimately the Board and the District are answerable to the voters of the District.