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CalOptima Health Board Member Faces Scrutiny Over Healthcare Center Endorsement

Elderly community members receiving healthcare support.

News Summary

Brian Helleland, a CalOptima Health board member, is under scrutiny for alleged pressure from a California health regulator to endorse a controversial healthcare center for elderly Vietnamese-speaking adults. This came amid fraud allegations against the organization behind the project, 360 PACE. Following concerns raised by Helleland about potential threats in communications with the regulator, CalOptima’s board unanimously voted to withdraw support for the health center, emphasizing the seriousness of the fraud claims.

Westminster, California — Brian Helleland, a board member of CalOptima Health and chief executive of Providence St. Joseph Medical Center, has faced intense scrutiny over multiple communications with Hang Nguyen, a leading regulator at the California Department of Public Health. Nguyen allegedly pressured Helleland to endorse a controversial healthcare center aimed at elderly Vietnamese-speaking adults, despite ongoing fraud allegations against the organization behind the project, 360 PACE.

Nguyen reached out to Helleland through numerous calls, texts, and emails, even contacting him late at night after 11 p.m. Using her work email, she reportedly emphasized her connection to the center, informing Helleland that her parent would be the facility’s “first patient.” As CalOptima approached a crucial decision regarding the health center’s endorsement, Nguyen allegedly sent a text message to Helleland that suggested she would not send investigators to his hospital during the vote, concluding her message with “lol,” which Helleland interpreted as a potential threat.

The health center, inspired by a federal model known as the Program of All-Inclusive Care for the Elderly and developed by 360 PACE, became a point of significant concern when CalOptima executives discovered a whistleblower lawsuit against 360 Health Plan, which is an affiliate of 360 PACE. This lawsuit alleges the company committed fraud during the COVID-19 pandemic, raising enough alarm for CalOptima to report the matter to federal law enforcement. Helleland, feeling pressured by Nguyen’s communications, expressed concerns to CalOptima executives.

Following Helleland’s reporting,CalOptima’s board unanimously voted in February to withdraw support for the healthcare center, indicating strong disagreement with Nguyen’s overtures. After the vote, Nguyen downplayed the severity of the fraud allegations against 360 PACE, dismissing the whistleblower as a “disgruntled employee.” Meanwhile, the California Department of Public Health acknowledged that it was reviewing Nguyen’s actions but refrained from discussing personnel matters.

Nguyen’s influence over CalOptima has raised significant concerns due to her apparent ties with influential local businessmen Gary and Larry Nguyen, whose companies have received financial benefits from CalOptima. It remains uncertain if there is any familial relationship between Hang Nguyen and the Nguyen brothers. The controversy surrounding this situation follows the resignation of Andrew Do, a notable former Orange County politician, from CalOptima’s board in February 2023, amid an audit and subsequent federal bribery charges against him.

In addition, the proposed healthcare center deal tied to the Nguyen brothers faced failure when the city of Tustin rejected the project, even with county funding allocated for it. A lawsuit from a former employee of 360 Clinic has brought to light further allegations of fraudulent reimbursement tactics during the pandemic, leading to heightened caution from CalOptima about projects associated with 360 PACE. The legal proceedings related to this whistleblower lawsuit are set to move forward in court by July 31, despite efforts to shift them to arbitration.

Ultimately, 360 PACE announced the discontinuation of the healthcare center initiative, citing significant regulatory delays and financial challenges amid ongoing investigations. While community leaders have expressed a strong need for the proposed center, recognizing the necessity for specialized senior care for the aging Vietnamese population, the project’s future remains uncertain amid these serious allegations and departmental reviews.