As we look back over the last 15 years, we realize how much Partnership HealthPlan of California has been able to do and how much we have grown and matured as an organization. We began operations in Solano County on May 1, 1994 with approximately 45,000 members and as of October 1, 2009 with Sonoma, we now have approximately 150,000 members. We believe our partnership model has benefits for members, providers, the state and our employees.

In the beginning of the HealthPlan, we provided health care to the Medi-Cal population in Solano County, but our programs and county coverage have grown. In 2006, we implemented a regional Healthy Kids program for children through age 18 who were ineligible for other publically-funded programs. In 2007, we implemented PartnershipAdvantage, which is a Medicare program for our dual eligible population. Just last year, we expanded into Sonoma County and open our first regional office in Santa Rosa, California. We intend to continue to play a key role in our current counties, Solano, Napa, Yolo, and Sonoma. To obtain financial viability was quite a challenge in 2008-2009 and will continue to be so in 2009-2010 and 2010-2011 due to California's budget crisis. We have been fortunate to have a great deal of support for our organization in Sacramento from legislators and the Governor's office.

As a HealthPlan we are committed to cost containment without jeopardizing the high level of quality we have provided over the last 15 years. We stand by our mission to help our members and the communities we serve be healthy. In order to fulfill that mission, our staff and providers are committed to providing continuous improvements like Perinatal Case Management, Severity of Illness programs, Substance Abuse Treatment benefits and outreach, Medicare, Complex Care Management and Physician Home Visits.

Partnership HealthPlan staff and Board of Directors have a strong committee to improve access, quality and cost effectiveness throughout the counties we serve by linking members with a primary care provider. We have been successful in reducing inappropriate use of emergency rooms, providing an appropriate level of inpatient care, developing innovative case management programs and providing more services locally. All of this has been possible because of the commitment of our partners, physicians, health care centers, hospitals, consumers, advocates, government officials, the business community, the Counties and many others.

As a HealthPlan we are committed to being a technology leader, so we have dedicated 2009-2010 to developing a stronger infrastructure in order to provide better services to our providers, who in turn, will continue to improve services to our members.

As always, thank you for your support and participation in the Partnership. We look forward to working with you for many years to come.

Jack Horn

Executive Director/Chief Executive Officer