Partnership HealthPlan completed its 12th year of operation in May 2006, helping over 85,000 members gain access to quality care for every need. In this past year we've continued to work together with our Board, providers, members, communities and our staff, maintaining a true working partnership. We continue working on four major focus areas, Expansion, Technology, Quality and Viability.

In the area of Expansion, The Healthy Kids program was launched in December 2005 in Solano and Napa Counties, and in January 2006 in Yolo and Sonoma Counties. The program thus far has helped over 1,300 uninsured children from ages 0 to 18 access comprehensive healthcare. This care includes not only outpatient and inpatient services, but vision and dental services as well. Just this past winter, children under the CalKids program were transitioned over to the Healthy Kids program in Solano and Sonoma County. This transition has allowed these members to access a wider range of services than under the CalKids program.

After two years of operation, the Solano County Medical Services Program (CMSP) program was transitioned over to Blue Cross of California in October 2005. The program had been a huge success, helping over 5,200 additional members obtain access to a primary care provider.

In the Quality area, HEDIS work was just completed in May 2005. Partnership continues to work very hard on keeping our quality measures high and our HEDIS scores are high again this year.

As for Technology, Partnership HealthPlan continues advancing in this area. We implemented eEligibility, an online system allowing providers to check the eligibility status of a member conveniently from their office computers. We have also implemented eTAR and eRAF, which allows the providers to fill out these forms online, saving paper, time and streamlining the approval process so our members get the care they need in a timely manner. Also, our Claims Status Checking system is very popular. These advances improve not only the services provided to members but also improve our processes within the HealthPlan. The Virtual Private Network (VPN), which allows providers to share pharmacy data, lab results and limited medical information essential when a patient changes physicians or sees several different specialists is saving untold time and expense for both providers and members and we are very excited to offer it to our communities. Our technology team is also testing a new Preventive Prompts system to assist members in knowing when they are in need of routine tests, examines and vaccinations. These are just a few of the multiple projects being worked on by our very talented Information Technology department.

Operationally, we remain very strong. Our Member Satisfaction survey again demonstrated that our members are very pleased with our services. Despite our inflation not being funding for the fourth straight year we have been able to keep administrative costs at an amazingly low 5%, ranking once again the third lowest in the state according to the California Medical Association. We remain fiscally strong as we search for new revenue sources in the way of grants as well as remain vigilant in our internal cost containment efforts.

Our care coordination programs such as prenatal care, diabetes, asthma and renal are working well with positive, quantifiable outcome measures. All of us at the HealthPlan take great pride in our achievements. We show an employee turnover rate of less than 10% with over 95% of employees rating Partnership as an excellent workplace. Our strong commitment from the Board and provider community help us to continue providing the quality care and services Partnership HealthPlan has become associated with over the past 12 years. I appreciate the support we have from our partners and look forward to another successful year.

Jack Horn

Executive Director/Chief Executive Officer