Group Health had already created districts for the purpose of recruiting new members, something like a political campaign. Ad Shoudy, a cooperative movement activist and founding board member, recognized that a district organization might provide a better foundation for member democracy. The idea was endorsed in principle at a board meeting on November 17, 1948. (Later the voting districts were termed "nominating areas" to avoid confusion with the smaller membership districts.)
Before the election, the board of trustees resigned in order to clear the slate. The following board was elected:
- Virgil Chadwick (district-elected)
- George Hunter (district-elected)
- D. M. Johnson (district-elected)
- Bob Scott (district-elected)
- Bob Wells (district-elected)
- Tom Bevan (at-large)
- William Birnbaum (at-large)
- Jean Ross Cawley (at-large)
- John King (at-large)