Holland has cited personal and professional reasons for withdrawing from consideration for a second term.
He was an appointee of Senate President Steve Morris, a Hugoton Republican. A spokeswoman said Tuesday that Morris has no timetable for naming a successor.
Holland has served as one of nine voting members of the Health Policy Authority's board since its creation in 2005.
The authority drafts recommendations for health reforms and administers some state programs, including the bulk of the Medicaid program.
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