County committee forwards Alameda Health Systems governance bill to full Board after public concern about layoffs

Chair Lina Tam and the committee voted Jan. 5 to forward proposed amendments to the Health and Safety Code that would implement recommendations from an ad hoc committee on Alameda Health Systems governance to the full Alameda County Board of Supervisors.

The measure would give the Board discretion to adopt either of two governance approaches the ad hoc committee outlined: option A, a hybrid model in which the Board would control AHS budget and CEO hiring and firing while the trustees oversee operations; or option B, which would allow the Board to appoint a member to the AHS Board of Trustees. County counsel and staff confirmed the draft legislation is intended to allow either path.

Jeanette Dong, chief public affairs officer for Alameda Health Systems, told the committee AHS would like to cosponsor the legislation and "work together to bring this to finality." She said the request stems from ad hoc committee recommendations and prior coordination between the County and AHS governance bodies.

During discussion supervisors sought clarification about a provision (section 5 in the proposal) that would permit the hospital authority to operate through "one or more corporations, joint ventures, or partnerships and maintain the private character" of any acquired hospitals or clinics. Dong explained that language was included to permit facilities such as Saint Rose to remain private in character where that status provides federal fiscal advantages, including intergovernmental transfers (IGT).

Public commenters urged the County to provide more detail before the full Board acts and raised operational concerns. "The proposal in the packet for today's meeting doesn't really say very much about what this might look like," said John Lizzie Poland, who asked how county finances and responsibilities would be used amid more than 300 announced AHS layoffs. An AHS employee who spoke during public comment said some jobs were budgeted through June 2026 and described planned cuts to outpatient services such as speech, behavioral and physical therapy. The employee said managers were not consulted about layoffs and encouraged trustees and administration to delay cuts.

Scott Dickey of County Counsel confirmed the draft implements the Board's previously selected option A pathway while giving the Board discretion to decide final governance arrangements and clarified that legislative counsel would refine statutory language. The committee recorded ayes and the motion passed; the item will advance to the full Board for further hearings and final action.

Next steps: the Board will consider the item at its next meeting; legislative counsel must publish the bill in print for at least 30 days before further action, allowing time for public review and comment.