Clyde Hamstreet, the firm's founder, has more than 20 years of experience with complex turnarounds, according to a biography on the firm's website. The firm led the restructuring of Sunwest Management, a Salem, Ore., company that owned a chain of senior living facilities and came under fire from creditors and investors.
Hamstreet has advised a number of companies through bankruptcy and restructuring of their finances, operations or management.
The state Legislature created Cover Oregon as a semi-autonomous public corporation. It is still considered an arm of the state government, but it has more independence than most state agencies and is supposed to be self-sufficient. Its revenue comes from a monthly charge of $9.38 for each person covered on a private insurance plan purchased through Cover Oregon. The organization also earns a smaller fee for people who apply to Cover Oregon and get referred to the Oregon Health Plan, the state's Medicaid plan for the poor.
Cover Oregon has received a total of $305 million in federal grants to fund its operations from 2011 through the end of this year. Most of the money has gone to develop technology that would allow people to compare health insurance plans and sign up, but the website has been plagued with glitches and has not been launched.
Hamstreet's contract says the firm will be paid up to $100,000 for its services and expenses. The contract lists five consultants who may be involved with fees ranging from $210 per hour to $300 per hour, which the contract says are lower rates than those charged to private-sector clients.
The firm will run Cover Oregon until a permanent executive director takes over. A search panel is expected to recommend one at the end of May.
