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www.openminds.com n 15 Lincoln Square, Gettysburg, Pennsylvania 17325 n 717-334-1329 n [email protected]
How To Make The Right Tech Investments For Your Organization: An OPEN MINDS Executive Seminar
On Technology Budgeting & Planning
T h e 2 0 1 8 O P E N M I N D S T e c h n o l o g y & I n f o r m a t i c s I n s t i t u t eO c t o b e r 2 4 , 2 0 1 8 | 2 : 0 0 p m – 5 : 0 0 p m
K e n C a r r , S e n i o r A s s o c i a t e , O P E N M I N D S
© 2018 OPEN MINDS
AgendaI. The Importance Of Strategic Planning For Technology Strategy
II. The OPEN MINDS Approach To Developing An Effective Strategic
Plan
III. Developing The Right Technology Strategy
IV. Technology Planning Case Studies
V. Questions & Discussion
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I. The Importance Of Strategic Planning For Technology Strategy
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Technology Investments Must Be In Sync With Strategy & Strategic ROI
Your tech strategy can’t be
“successful” without having an
overall organizational strategy…
"If you don't know where you are going, any
road will get you there."
- Lewis Carroll
© 2018 OPEN MINDS
The Strategic Part Of Technology Planning
The Strategic Technology plan identifies technological infrastructure needed for
organization to reach its strategic objectives
Should demonstrate (and quantify) that proposed technology investments deliver return
in:
• Increased revenues
• Improved performance
• Reduced operating costs
• Improved stakeholder preference or market positionStrategic planning is your
organization’s process of continually assessing its internal capabilities and
the external environment (payers, consumers, and competitors) in order
to determine how best to use its limited resources to meet your strategic
objectives.
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Strategy In An Uncertain Landscape
Need three plans –
The strategic plan for the current market – should focus on optimizing the performance
of current operations (market positioning, market share, revenue, margins, etc.)
The strategic plan for the future market – should have a vision for your organization in
its ‘next generation’ – and determine the time and resource required to make that
change
The transition plan to the future market – the framework for moving from current market
to future market
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A solid plan for the future frees the
management team to focus on a plan to
optimize the performance of current
operations and build cash reserves to
fund future development.
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Value Of Planning For CEO & Management Team
Provides clarity from the board regarding organizational priorities and
performance expectations
Serves as the basis for development of organizational infrastructure and
operating plans
Serves as the basis for departmental and program plans
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Value Of Planning For Your Organization
Interprets the mission and vision, providing clear direction for the short-
term and for the future
Serves as a formal process to allocate limited resources
Establishes strategic priorities
Ensures organizational alignment
Establishes the basis for on-going performance reporting on
organizational status provided by the chief executive officer to the board
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What Emerging Science Will Have The Greatest Impact On Behavioral Health?
New Understanding Of Central Nervous
System & Brain Chemistry
Technology To Optimize the Value of Consumer Care
Technology To Support System
Performance Improvement
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Reducing Service Cost
Engaging Consumers
Technology Infrastructure To Optimize Value Of Consumer Care
Patient portals,
websites, and
web-based
consumer tools
Automated
consumer outreach
Telehealth and
telemedicine
Remote
monitoring
Tech improving
admin
efficiencies
Tech-enabled
treatment
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Diagnost ics
Consumer Educat ion/ Dec ision
Support
C l in ica l Treatment
Cogni t ive Funct ion Restoration
Ear ly Detect ion
of Re lapse
Relapse Prevent io
n
Remote M oni tor in
g o f Pat ient Hea l th
Treatment-Enabling Technologies Available All Along The Service Continuum
• Video Doctor
• Common Ground
• Virtual Handheld Clinic
• PTSD Coach
• True Colours
• ChronoRecord
• Health Steps for Bipolar
• Biomarker: BDNF levels
• myStrength
• Tele-psychiatry using IronWorks™
• M3 (My Mood Monitor™)
• Brain scanning tech
• TMS Therapy®
• Beating the Blues
• SilverCloud
• My Mood Map
• eCBT Mood©
• MyBrain Solutions
• Automatic Trail Making Tests™
• fMRI
• ITAREPS
• MONARCA
• Actiwatch
• Health Buddy®
• OPTIMI
• Technology Enhanced Recovery™
• REAC-CRM (REAC-lithium)
• PSYCHE
• Personalised Ambient Monitoring (PAM)
• MoodMapping
• ViTelCare™ T400
• SenseWear® Armband System
• MagneTrace
• ID-Cap
• Electronic Medication Management Assistant® (EMMA)
• Implantable RF Transceiver ZL70102
• Motionlogger Actigraph
• Helius™
• MOBUS
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Optimizing Organizational
Performance, Care
Coordination & Population
Health Management
Getting The Necessary
Data
Technology Infrastructure To Support Performance Management
Electronic
health records
Health information
exchange and data
aggregation
Care
coordination
platforms
Advanced population
analytics and clinical
decision support
Performance
monitoring and
management tools
Consumer
segmentation
and health risk
stratification
Consumer referral
tracking
Patient
registries
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So Where Does Technology Fit In This Equation? Necessary To Manage Risk & Compete On “Value”
Analytics technology to support
performance measurement
capability
Treatment technology into
increase ‘value’ of consumer care
For analytics technologies,
use of the data for decision
making is key to ROI
For treatment technologies,
increasing treatment
‘value’ is key to ROI
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Technology Has Changed The Expectations Of Payers & Consumers
1. Personalization of consumer treatment through analytics-informed decision support
2. More efficient and effective coordination of consumer services across the service system
3. The measurement of “value” of services
Telehealth and virtual
consultation changing
geographic market
boundaries for services
Smartphone and other technologies
for inexpensive consumer-
directed disease management
Health information exchange provides data exchange and creates ‘big data’ for
consumer service planning
New treatment technologies have
changed the options for consumers
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A New Market Model Is Emerging
New Genetics, Pharma, & Neurotech:The “What” of Service
Telehealth & Remote Services: The “Where” of Service
Web-Enabled Admin Tools:
The “How” of Service
Analytics & Decision Support:
The “Right” Service
New Service Delivery
Paradigm
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Technology Adoption in Health & Human Services Is Slow
Conflict between the technical
capabilities of HIEs and HIPAA
Slow change in reimbursement
models to support (require)
new tech adoption
Lack of ‘best practice’ models and expertise to
reengineer service delivery
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34.7% 30.6%25.5%
16.8%
4.1%
13.3%13.8%
15.8%
18.4%
3.6%
31.1%30.6% 33.2%
38.3%
22.4%
0.0%
20.0%
40.0%
60.0%
80.0%
Text messaging/emailcommunication with
consumer
Telehealth/telepsychiatry Consumer portal Patient engagementapps/tools
eCBT
Adoption Of Technology Innovations By Specialty Provider Organizations, 2017, %
Currently implemented Implementation in process Considering implementing in future
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Where Does Technology Fit In?
1. Develop vision of future competitive advantage and market positioning
2. Scenario-based strategic plan incorporating alternate future positioning options
3. Detailed plans – marketing, financial, operational, capital, HR, etc. – to implement strategy and future vision
4. Key performance metrics and metrics-based management to track strategy implementation (and allow mid-course adjustments)
5. Optimization of current operations to keep current programs as competitive (and profitable) as possible as long as possible
6. New service model development to support future vision
7. Collaborations as needed to facilitate new market vision
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Shifting Role of Technology In Health & Human Services
Administrative Tool
Compliance Requirement
Platform For Competitive Advantage
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The Shift From The Functional To The Strategic
The result of compliance focus of the past ten years – less focus on usability and
clinical effectiveness
• From ‘cost’ to ‘investment’
• From ‘administrative management’ to ‘imbedded in service lines’
Essential for competitive advantage – and market positioning - over the next five years
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Scenario-Based Planning Is A Tool For Planning In A Chaotic Market
Most organizations need to move forward
with implementation without “final”
information
Most practical option is concurrent scenario
building and planning
Most organizations need to move forward
with implementation without “final”
information
Most practical option is concurrent scenario
building and planning
A Scenario Is. . .
An outline of an hypothesized chain of events
Depictions of a future that are useful to clarify thinking – not predictions or forecasts of what will happen; rather, a suggestion of what might happen
Several (usually 3-5) descriptions of hypothetical situations – interspersed with extrapolations of trends; more useful for understanding options and dealing with uncertainty than in predicting specific events
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Scenario-Based Planning Process
1. Build scenarios of likely future situations and high-level implementation plans for each
2. Determine the “common elements” in the scenario implementation plans – common organizational capabilities, resource investments, partnerships, etc.
3. Select the “most likely” scenario to occur as the basis for the strategic plan
4. When building the operational implementation plan, implement the “common elements to all scenarios” first
5. Monitor events to update scenarios and action plans
6. Continuously update both the scenarios and the implementation plans based on new developments
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Strategy Development - Common Strategic Options For Consideration
Closure of services/service lines that are not profitable and/or affordable and/or “good
fit”
Strategies to improve margins of existing service line
Building “value added” products to increase margins
Expansion of successful service lines (expansion of geography, new customer base,
etc.)
Diversification of revenue sources
Reconfiguration of services within “value chain”
Strategies to address shifting “economy of scale” issues
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Factors Contributing To Failed Plan Implementation
Poor preparation of line managers
Definitions of service lines
and operating units not precise
Vaguely formulated
goals
Inadequate information for action planning
Badly handled reviews of
business unit plans
Inadequate linkage of
strategic plan with other
control systems
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II. The OPEN MINDS Approach To
Developing An Effective Strategic Plan
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Recommended Phased Business Strategy Development Process
Phase One
Scenario-based strategy development
Phase Two
Modification of business unit plans to support strategy implementation
Phase Three
Development of executive team performance dashboard
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Phase One: Scenario-Based Strategy Development
Confirm short-term and long-term organizational objectives
Analyze external and internal factors that affect strategy
Identify likely environmental scenarios and related strategic issues and priorities
Develop strategic priorities and related tactics
Develop a strategic action plan with a high-level implementation plan
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Phase Two: Modification Of Business Unit Plans To Support Strategy Implementation
Marketing and development plan
Technology and communications plan
Operations management plan
Human resource and talent management plan
Financial management plan
Organizational and program budgets
Financial management organizational strategies
Recommendations regarding organizational structure
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Phase Three: Development Of Executive Team Performance Dashboard
Determine critical performance outcomes for success of strategy
Identify leading indicators and metrics that track these performance outcomes
Develop key performance indicator metrics and related specifications
Create an executive team performance dashboard based on these strategy key performance indicators
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Overview Of Strategic Planning Process
Develop Key Performance Indicators
Develop Detailed Implementation Action Plan
Develop Budget & Financing Plan
Develop Operational Plans – Marketing & Business Development, HR & IT
Identify Options for Achieving Objectives - Strategies, Tactics, Markets & Services
Gather Internal Information/Internal Analysis – Service Portfolio Analysis
Gather External Information/External Analysis – Trends & Competitors
Review/Establish Mission/Vision/Objectives
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Typical Strategic Plan Outline
Executive Summary
Statement of Annual Goals & Objectives (3 Year)
Summary of Internal Organizational Analysis
Summary of External Market Research
Possible Environmental Market Scenarios
Organizational Strategies & Tactics for the Most Likely Strategic Scenario
• Strategic Issues & Objectives
• Strategic Initiatives
• Key Tactical Elements of Each Strategic Initiative
Implications of Proposed Strategy & Tactics on Operations
• Marketing & Development Implications of Organizational Strategies
• Operational & Technology Implications of Organizational Strategies
• Financial Management Implications of Organizational Strategies
Strategic Action Plan: High-Level Implementation Plan for Each Strategic Initiative
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Analysis Data Points
State Trends
Consumer Data
• Population / Demographics
Payor Coverage
• Medicaid, Medicare, Commercial, other
Competitors
• Size, Population, Service Lines, Branding
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Revenue Mix By Service Line
15% 15%12%
28% 28% 28%
4% 3%2%
47% 46%
50%
1% 2% 2%3% 3% 2%3% 3% 3%
2010 2011 2012
Partial Care Services Adult Residential Supported Housing
Other Services Adult PACT
Adult Intensive Case Mangement Services PATH
Adult Supported Employment
2015 2016 2017
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Profit and Loss by Service Line, 2017
Revenues
Allocated & Direct Expenses
Percentage of Revenue by Service Line
Profit/Loss (Margin)
Margin (Percentage)
Funding Mix
Medicaid
Other state funds/ grants
Other local funds/ grants
Partial Care Services $2,387,697 $2,583,957 12.5% ($196,260) -8.22% 43% 55% 2%
Adult Residential Supported Housing $5,400,241 $5,298,334 28.2% $101,907 1.89% 13% 86% 1%
Other Services $419,493 $451,558 2.2% ($32,065) -7.64% 99% 1%
Adult PACT $9,589,380 $9,370,374 50.0% $219,006 2.28% 42% 58%
Adult Intensive Case Management Services $364,118 $428,828 1.9% ($64,710) -0.67% 31% 69%
PATH $410,177 $401,618 2.1% $8,559 0.09% 21% 79%
Adult Supported Employment $600,715 $576,691 3.1% $24,024 6.60% 100%
Total $19,171,821 100.0%
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2017 Unit Cost of Services Unit of
Length Unit Cost Statewide
Median, 2010
Partial Care Services A County - Adult Only - Partial Care Services hour $38.35 $22.03
B County - Adult Only - Partial Care Services hour $16.51 $22.03
Adult Residential Supported Housing A County - Adult Only - Supported Housing 15 min $42.07 $43.14
B County - Adult Only - RIST 15 min $74.94 $50.05
B County - Adult Only - RIST 2 hour $22.49
C - Adult Only - RIST Tri-County 15 min $90.65 $50.05
C - Adult Only - At Risk 15 min
D County - Adult Only - Supported Housing 15 min $54.70 $43.14
E County - Adult Only - Supported Housing 15 min $39.04 $43.14
UnEion County - Adult Only - Enhanced Support 15 min $48.28 $43.14
Other Services Regional - Adult Only - Supported Education hour $66.22
Statewide - PACT TTA
Adult PACT E County - Adult Only - PACT 9 hour $261.81
D County - Adult Only - PACT 5 hour $274.71
B County - Adult Only - PACT 7 hour $237.53
B County - Adult Only - PACT 8 hour $250.76
A County - Adult Only - PACT 6 hour $223.41
C County - Adult Only - PACT 1 15 min $205.85
C County - Adult Only - PACT 2 15 min $278.10
C County - Adult Only - PACT 3 15 min $254.32
Z County - Adult Only - PACT 4 15 min $274.57
Adult Intensive Case Management Services F County - Adult Only – ICMS 15 min $82.23 $58.85
PATH F County - Adult Only – PATH 15 min $92.63 $56.63
F County - Child & Adult - PATH 15 min $53.53
Adult Supported Employment E County - Adult Only - Supported Employment 15 min $58.62
B County - Adult Only - Supported Employment 15 min $65.13
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Overview
The planning process can represent a significant challenge. It takes time and resources
in an already taxed environment
Planning
• Remove obstacles
• Look for process improvements
• Define best practices
• Consider new technologies (Broaden the scope of technology – don’t see what you have now
as all you’ll ever need)
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The Strategic Part Of Technology Planning
Are you a small or large business?
What is your current technology
investment?
• How far is it from where you need to be?
(Timeline & Budgeting Effects)
In-House or Cloud-Based
• It’s not just EHRs!
• Moving to the Cloud? Internet bandwidth
could be an issue
Current and future needs – hardware,
software and support
Staffing - Less or More?
Organizational Impact – How will it affect:
• People
o IT
o Management
o Clinical
o Billing
• Time
• Processes
• Training
• It is easy to underestimate
The most important question is WHY?
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Building A Strategic Technology Plan
The Strategic Technology plan identifies technological infrastructure needed for
organization to reach its strategic objectives
Should demonstrate (and quantify) that proposed technology investments deliver return
in:
• Increased revenues
• Improved performance
• Reduced operating costs
• Improved stakeholder preference or market position
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Broad Categories Of Technology Use In Behavioral Health Care
The Basics:
• Electronic Health Records
• Operations Software Applications – HR / Payroll; GL / Accounting
Telehealth Technologies
Consumer-Focused Technologies
Informatics, Analytics & Decision Support Technologies
Website & Social Media Usage
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Three-Phase Review Of Technologies
Strategic review phase
Clinical review phase
Business model review phase
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Start With Strategy & Positioning Of Each Service Line
Strategy should set the context for
tech selection – what markets and
what service lines?
Key question is competitive
advantage of each service line in the
selected markets.
What are the
competitive threats
to keeping targeted
customer and
consumer
markets?
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Technology Investment Should Serve Strategic Purpose
Reduce cost of service per unit
Reduce cost of service per case
Improve payer preference
Improve consumer preference
Improve operating performance
Improve consumer outcome or functioning
Facilitate new consumer service
Facilitate new payer relationship
Strategic reviewShort list of
technologies for each service line
Clinical review
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Phase 2: Clinical Review Phase
The technologies that meet the strategic review criteria
form a short list for clinical review.
Review of clinical leadership of proposed technology
• Clinical methodology and operational use of technology
• Scientific development and research data
• Outcomes and performance data
• Customer/consumer acceptance
Select treatment technologies to build into service
process
Does the new
technology
meet your
organization’s
clinical
standards?
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Phase 3: Business Model Review Phase
Define the revised service line business model with embedded technology
Determine financing model and reimbursement for service
Process mapping of revised service line
Develop a financial sustainability plan for the business model – breakeven and P/L
Establish key performance metrics for tracking performance
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Step 1 & Step 2. Define The Business Model & The Financing Model For The Service Line
Structural Financing Model
Service Delivery Model
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Step 4. Develop Financial Sustainability Plan For Business Model
Conduct a breakeven analysis
Develop profit/loss projections
Business model to imbed in organizational
strategic plan, operating plans, and
final budget
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Conduct Breakeven Analysis
Key breakeven analysis factors:
Annual yield/productivity of service units (by type) per
direct service (billable) clinical team member
Average annual total compensation cost per direct
service (billable) clinical team member
Assumptions in breakeven analysis:
Constant fixed costs
Average variable costs with assumptions
Relationship of revenue to variable expense in
assumptions
Factors affecting assumption of yield/productivity of
team members
Breakeven analysis answers
question: At what level of revenue
(how many consumers) will the
program break even?
Breakeven analysis is a supply
side (i.e., costs only) analysis –
does not address revenue side of
the equation
Construct breakeven analysis for
the specific coordinated care
business model both with and
without organizational overhead
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Develop Profit/Loss Projections
Key Variables In Profit/Loss Projections
All services provided
Number of annual unique consumers by payer
Number of annual service units (by type) per consumer
by payer
Negotiated contract rate for each service unit, case, or
population, by type and by payer
Billing and collections yield (% of total units billed that
are collected) by payer
If P4P bonuses or penalties, the projected performance
on each P4P performance measure
P/L determines the margin of service line based on revenue projections and operating cost model
Financial statement summarizing revenues (with associated costs and expenses) incurred during a specific period of time
Illustrate the ability of the program to generate a margin by increasing revenue and reducing costs
Revenue projections – and assumptions – are key element of P/L projections
Typically, revenue projections in health and human services are created by payer/contract
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Analysis Of Program Business Model
1. Does the investment in technology
achieve objectives and improve the
performance of the service line?
2. Improve margin and sustainability?
3. Reduce costs to customers (payer or
consumer)?
4. Improve performance or outcome in
metrics that are of interest to customers?
If no demonstrable
improvement in
cost reduction,
margin
improvement, or
revenue – no reason
to invest in
technology…
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The Budget Issue… Can You Afford The Technology You Need?
1. Capitalization of the initial purchase is smaller
issue
2. The big question – on-going costs of
technology and systems to support it
3. Part of financial analysis – breakeven points
and on-going P&L
4. It’s all about ROI
"Price is what
you pay. Value
is what you
get.”
Warren Buffet
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From Technology Planning To Budgeting
Organizational Strategy & Vision For IT
Current IT Environment: Gap Analysis & Assessment
Future IT Environment: What It Will Look Like & Performance Expectations
Detailed Plan
Budget & Other Resource Requirements
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A Review: Budgeting 101
A balanced financial plan that promotes the efficient allocation and use of resources
and ensures that all funds received and disbursed are accounted for in accordance with
current laws, regulations, and policies
• A plan
• Identifies receipts and expenditures in specific amounts
• Specific cost categories
• Set period of time
• Monitoring mechanisms
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Three Key Components Of Technology Budget
Technology Plan Budget
• Ensuring that technology aids in your objectives
Basic Expenses
• Covering all the basics to support infrastructure, applications, and staff
Routine Capital Budget
• Maintaining and enhancing technology infrastructure
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1. Technology Plan Budget Components
This one is easy – it’s the current budget year costs as laid out in your detailed
technology plan
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2. Basic Technology Budget Expenses
This is the bigger list of items:
Information technology staff and benefits
Telecommunication/connectivity costs
Internet access costs
Software maintenance and help desk
fees
Training costs
Consulting/customization costs
Outsourced IT service costs
Other?
Must-Have Basic IT Budget
Expenses
Infrastructure support and
maintenance
Application support and
maintenance
User support (Help Desk)
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3. Technology Capital Budget Expenses
This includes your typical capital budget
expenses
• Hardware, networks, and upgrade costs
• Software and software upgrade costs
• Other capital expenses and related depreciation
Use both strategies in your IT
budgeting process:
• Top Down – IT initiatives are pushed
from the top executive level on down to
the masses, based on strategic
objectives and initiatives
• Bottom Up – Where they start at the
department level and roll upward for
approval
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Common Questions Related To Technology Planning & Budgeting
What percentage of your overall budget should the technology budget be ?
How many FTEs should you have in your technology department and who does it
report to?
What are the key initiatives and objectives of your organization’s technology plan for
the next 3-5 years?
What major expenses are you anticipating in your technology budget and how are you
funding them?
How is your technology staffing changing (if at all) to meet your organization’s needs
over the coming years?
How are you building in mechanisms to support your staff’s increased use of
technology?
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Major Data Systems Analysis: EHR
Inventory your current use of your electronic health record software solution
• Using all major modules and components?
• Keeping abreast of updates and new functionality?
• Ensuring data quality?
• Good end user training materials and documentation?
• Routine reporting set-up with documentation on use?
• Other?
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Major Data Systems Analysis: GL/Accounting Systems
Inventory your current use of your GL/accounting software solution
• Using all major modules and components?
• Keeping abreast of updates and new functionality?
• Fully integrated with human resource and payroll applications?
Broad areas of functionality
• Budgeting and financial reporting
• Contract & grant management
• Unit cost reporting and management
• Forecasting
• Fixed asset management
• Electronic banking
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Major Data Systems Analysis: Integrated HR System
Inventory your current use of human resource software solution
• Using all major modules and components?
• Keeping abreast of updates and new functionality?
Broad areas of functionality
• Basic employee information
• Position control
• Education and certification tracking
• Electronic timesheets
• Employee self-service (demographic information, benefits, etc.)
• Manager self-service (position changes, evaluations, etc.)
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Video & Telehealth Technologies
Do you use video technologies for staff meetings and staff contracts to reduce travel
time and costs?
Have you implemented the use of video technologies for service delivery and consumer
contacts?
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Research & Plan for Use of Other Consumer-Focused Technologies
Which categories of consumer-technologies make sense for your organization? How to
you decide which to use?
• Diagnostics
• Consumer education
• Treatment technologies
• Cognitive function restoration
• Early detection of relapse
• Relapse prevention
• Remote monitoring
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Data Analytics Plan
What reporting do you want from your various software systems and databases?
• Define reporting and dashboard needs.
• Identify data points and locations.
• Identify tools (data warehouse, data exports, business intelligence tools, etc.) to aggregate and
analyze data.
• Train staff in using the reports, dashboards, and data analysis tools
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Resources To Support Your Technology Use
Application support
• Do you have staff members who are the ‘expert users’ as well as those that support your key
software applications? Are the basics documented so that you are not dependent on
individuals?
Technology infrastructure support and maintenance
• What is your plan for maintaining and upgrading your technology infrastructure?
Help Desk
• Do you have formal help desk functions, require response times, and reporting to support all
technologies?
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Six Simple Rules For Tech Investment
1. Buy technological functionality like you buy anything else
2. Don't be swayed into buying new technology simply for the sake of the technology
3. Don't immediately reject technology that re-engineers your work processes
4. Assess potential technology vendors like you would potential business partners
5. If a reasonable person can't understand it, don't buy it
6. Choose wisely, plan carefully, and monitor progress
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Sample Technology Plan Outline
Executive Summary
• The executive summary is a snapshot of the entire plan, highlighting the key areas of the plan,
which include goals, vision, needs, priorities, and proposed solutions. It conveys how you will
use technology to achieve your strategic and operational goals in alignment with your agency's
mission.
Organization Profile
• Include a short description of the organization to set the context, including a summary of the
current state of technology use in comparison with the rest of the industry
Goals & Technology Vision
• Describe the vision of how you see your organization using technology in light of its strategic
and operational objectives.
Current Technology & Resources
• Describe your current technology use and staff resources.
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Sample Technology Plan Outline
Priority Needs
• Develop a bullet list of priority technology needs for the next 3-5 years, referencing how they
support the strategic and operational goals. Focus on what you want to do with technology, not
simply what you want to purchase.
Technology Solutions
• Detail the proposed technology solutions as a discreet list of items
Timeline
• Develop a reasonable timeline to complete all phases of the technology plan. Set deadlines for
phases and milestones.
Budget
• Develop a budget for all of the items detailed in the technology solutions section.
Supporting Documentation
• Include an appendix at the end of the plan for any support documentation.
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The Situation
County-based provider
$15 million in annual revenue
Medicaid; Medicare; Commercial; DHHS
230 Employees
3 Locations
Key state trends:
• Privatization of the management of some of the behavioral health services
• One million more individuals expected to obtain coverage through the Medicaid expansion provisions of the health care reform legislation
• The state has added or restored funding to improve the system of care for individuals with intellectual and developmental disabilities due to assorted court decrees
Service Lines
• Adult services (adult outpatient, community
support)
• Child, adolescent & families services
• Senior services
• Emergency services
• Housing services
• Medical (medication) services
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Strategic Objectives
#1 Continue to develop the administrative systems and service array necessary to maintain and further ABC Organization’s reputation as a premier service provider in the context of the changing state human service market.
#2 Pursue further revenue diversification and expansion of services, supports, and prevention activities so that ABC Organization can expand its impact on individuals, families, and communities.
#3 Celebrate and communicate ABC Organization’s performance and reputation as a center of excellence, center of influence, and employer of choice.
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Strategic Initiatives
Initiate a formal process for enhancing or developing relationships with MBHOs or other
parties who are likely to win the contract for privatization
Enhance the unit cost reporting and management and financial reporting systems to
ensure the ability of the ABC Organization to set target costs and prices and manage
them for all lines of service as well as provide all managers with up-to-date financial
reports with analysis and trend reporting
Implement a comprehensive technology infrastructure that:
• Supports the organization’s administrative, management, and compliance functions
• Creates new revenue and market opportunities
• Ensures successful implementation of electronic health records and meets all federal
requirements of meaningful use
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Strategic Initiatives
Develop and expand the business development office to include marketing, public
relations, grant writing, and advocacy functions at ABC Organization.
• Marketing and business development
• Referral generation and management
• Grant and contract writing and management
• Market research and service line development
• Partner selection and management
• Public relations
• Advocacy and lobbying efforts with communities and government stakeholders
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Strategic Initiatives
Implement a formal balanced scorecard performance measurement system and
performance dashboard at ABC organization.
Develop a key stakeholder reporting and communication system to communicate ABC
organization’s performance and reputation as a center of excellence, center of
influence, and employer of choice.
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The Situation
Multi-County Provider
Annual Budget $130 million
97 county contracts, the majority are line-item cost reimbursement contracts with
performance reporting
The organization put together a seven component plan to be implemented over an 18-
month period
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Strategic Objectives
#1 Ensure the organization maximizes reimbursement by spending exactly the budgeted amount on each line item of each cost-reimbursement contract
#2 Provide better data and reporting to financial and clinical staff to manage report financial and performance data on each contract
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Strategic Initiatives
Implementing an electronic health record (EHR) to provide:
• Data on consumer demographics and service delivery
• Management reporting for operations
Restructuring the general ledger chart of accounts to:
• Enhance financial reporting and projections
• Allow the system to be used for reporting actual versus budgeted expenses for each contract
Implementing new A/P process to:
• To coach program managers in using management reporting
• To aid programs in managing expenses to hit budgeted numbers and service delivery to hit
targets
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Strategic Initiatives
Designating financial analysts for each clinical program:
• To coach program managers in using management reporting
• To aid programs in managing expenses to hit budgeted numbers and service delivery to hit
targets
Designing and implementing CRM-based software solution to:
• Manage all RFP opportunities and proposal development and submission
• Manage all current payer contracts, including contact information, billing and reporting, and
summary actual versus budget expenses
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Strategic Initiatives
Implement an overarching business intelligence tool on top of the EHR, GL, and CRM
systems to:
• Address the complexity of the contract financial performance reporting
• Simplify the process of allocating shared expenses each month across contracts and programs
• Generate required service and demographic reporting
• Address executive and management metrics dashboard needs
Involving quality assurance and clinical leadership in providing oversight to ensure
performance targets are achieved
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The Situation
Mental Health/IDD Authority in the State of Texas
600 employees
$60 million operating budget
16 locations
25 combined program / service lines
Key Issues:
• Clinician Shortage
• Lack of local contribution to service delivery system
• Low per capita income; provide services to some the poorest zip codes in the country
• Historical reliance on State contracting and general revenue
• Staff in the field complain about documentation (want mobile)
• Difficulty keeping OP in the black
o Need to grow caseloads and do more with less
o Staff pushback
• Management complains about poor data and reporting capabilities
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Strategic Initiatives: Discussion
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Where does Technology
fit in?
How will it affect the budget?
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Case Model Discussion Questions
Organizational Situation
• What is your assessment of the Center’s current situation?
• What questions would you want to ask the CEO?
Developing A Plan
• What options do you see as available to the Center at this point? What are the advantages and
disadvantages of pursuing each of them?
• If you were to replace the current CEO, what tactics would you include in your plan for the next
90 days?
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Review Of Technology Planning Process
Develop Key Performance Indicators
Develop Detailed Implementation Action Plan
Develop Budget & Financing Plan
Develop Operational Plans – Marketing & Business Development, HR & IT
Identify Options for Achieving Objectives - Strategies, Tactics, Markets & Services
Gather Internal Information/Internal Analysis – Service Portfolio Analysis
Gather External Information/External Analysis – Trends & Competitors
Review/Establish Mission/Vision/Objectives
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Review - Technology Planning To Budgeting
Organizational Strategy & Vision For IT
Current IT Environment: Gap Analysis & Assessment
Future IT Environment: What It Will Look Like & Performance Expectations
Detailed Plan
Budget & Other Resource Requirements
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-Michael Porter
“Finally, strategy must have continuity. It can't be constantly reinvented.”
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