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Board approves $249,500 HHS organizational assessment, funding shifted to interest income after debate
Summary
The Board approved a two‑year, $249,500 contract with Health Management Associates to conduct an organizational and fiscal sustainability assessment of Health, Housing & Human Services. After questions about layoffs and alternatives, commissioners directed staff to fund the contract entirely from departmental interest income; the measure passed 4‑1 with Commissioner West dissenting.
Clackamas County commissioners voted 4‑1 on May 7 to approve a personal services contract with Health Management Associates to conduct an organizational assessment and fiscal sustainability analysis of the county’s Health, Housing & Human Services (HHS) department.
Denise Swanson, HHS deputy director, told the board that HHS lacks the internal capacity to complete a comprehensive assessment and that an independent review would help identify inefficiencies, structural changes and strategies to prepare for ‘‘financial cliffs’’ that threaten services. ‘‘We do not have the organizational capacity to do this,’’ Swanson said, describing the need for an outside firm with experience in county‑level assessments.
The contract amount presented was $249,500 over two years, initially described as funded half from interest income and half from county general funds. Commissioners pressed staff on whether the work could be done internally and whether the one‑time dollars would instead be better used to retain staff facing layoffs. Staff and HHS leadership responded that one‑time funding would not sustainably cover ongoing positions and that the assessment aims to produce a strategic plan to reduce future layoffs and improve fiscal sustainability.
Commissioner West said he remained concerned about using limited county resources and sought assurance that shifting funding would not create ripple effects across other internal programs. After discussion, staff agreed to fund the contract entirely from departmental interest income rather than county general fund allocations; the board approved the contract with that funding direction by a 4‑1 vote (Commissioner West opposed).
What the assessment will cover: staff said the consultant will evaluate operations, financial practices and organizational structure, engage employees across divisions, and present phased recommendations in time to inform the next budget cycle.
Provenance: This article is based on the board’s discussion and vote on the HHS organizational assessment during the consent‑pulled item discussion on May 7, 2026.
