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Psychiatric Rehabilitation Public Finance 101

Presentation to:The New Jersey Psychiatric Rehabilitation Annual ConferenceNovember 21, 2013, Pines Manor, Edison, NJ

By Tom Pyle MBA, MS, CPRP

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Budgetting

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Budgetting

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Budgetting

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Budgetting

 1. Mental Health Association Essex County Audit Report

(Agency Financials)  

2. Community Mental Health Block Grant(System and programs description)

  

3. NJ State Budget(State specific funding for DMHAS, others)

  

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Today’s Objectives

1. Determine info sourcesForm 990s, Block Grant Apps, Gov’s

Budget...

2. Differentiate info typesRevenues, expenses, assets, liabilities

3. Inspect particular info“Line items”, funding for programs

4. Evaluate overall info

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The Question...

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The Answer...

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The Problem (Kaplan & Porter, 2011)

“…almost complete lack of understanding of how much it

costs to deliver patient care, much less how those costs compare with

the outcomes achieved.”

Robert Kaplan & Michael Porter

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The Goal?

Access? Availability? Equity? Cost containment?

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The Goal?

Access? Availability? Equity? Cost containment?

VALUE for the Consumer

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What Is Value? (Oxford English Dictionary)

The regard that something is held to deserve; the importance, worth, or usefulness of something: your support is of great value

the material or monetary worth of something...

... compared to its price.

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Value: A Calculation (Porter,

2010)

Value = ❑❑

𝑂𝑢𝑡𝑐𝑜𝑚𝑒𝑠𝐶𝑜𝑠𝑡𝑠

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Presentation Outline

1. IntroBalance SheetIncome Statement

2. Agency

3. Block Grant

4. Governor’s Budget

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Intro: Balance Sheet

What I Have = What I Own

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Balance Sheet

What I Have = What I Own What I Have = What I Own + What I

Owe

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Balance Sheet

What I Have = What I Own What I Have = What I Own + What I

Owe Assets = Equity +

Liabilities

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Balance Sheet

What I Have = What I Own What I Have = What I Own + What I

Owe Assets = Liabilities +

Equity

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Balance Sheet

What I Have = What I Own What I Have = What I Own + What I

Owe Assets = Liabilities +

Equity

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Balance Sheet

What I Have = What I Own What I Have = What I Own + What I

Owe Assets = Liabilities +

Equity

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Intro: Income Statement

Revenues – Expenses = Profit

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Income Statement

Revenues – Expenses = Profit (or, Surplus)

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Agency

Balance Sheet

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Agency

Balance Sheet

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Agency

Income Statement

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Sidebar: Form 990

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Sidebar: Form 990

“501(c)3”

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Form 990

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Let’s Take A Closer Look...

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Block Grants

To states for behavioral health issues1) Substance Abuse, 2) Mental Health

http://www.samhsa.gov/grants/blockgrant/

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Block Grants

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NJ Mental Health Planning Council

http://www.state.nj.us/humanservices/dmhs/boards/planning_council.html

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Bi Yearly Application Process

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…Which Produces This Document…

http://www.state.nj.us/humanservices/divisions/dmhas/Final%202012-2013%20Joint%20Block%20Grant%20Application.pdf

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…Found on the DMHAS site…

http://www.state.nj.us/humanservices/divisions/dmhas/

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A Look At The Application...

http://www.state.nj.us/humanservices/divisions/dmhas/Final%202012-2013%20Joint%20Block%20Grant%20Application.pdf

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Let’s Take A Closer Look...

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NJ State Budget

http://www.nj.gov/treasury/omb/

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…Which leads to…

http://www.nj.gov/treasury/omb/publications/14budget/index.shtml#budget

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…Which leads to…

http://www.nj.gov/treasury/omb/publications/14budget/pdf/FY14BudgetBook.pdf

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Revs & Exps

Expenditures

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Let’s Take A Closer Look...

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What Have We Learned?

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What To Do?

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References

Kaplan, Robert S., & Porter, Michael E. (2011). How to solve the cost crisis in health care. Harvard Business Review, 89(9), 46-64.

Mental Health Association of Essex County, Inc. (2012). Form 990: Return of organization exempt from income tax. Montclair, NJ: Mental Health Association of Essex County, NJ.

Mental Health Association of Essex County, Inc. (2013). Financial statements and supplementary information: June 30, 2012 and 2011. Montclair, NJ: Mental Health Association of Essex County, Inc.

New Jersey Department of Human Services. (2013). Combined 2014-15 Substance Abuse Prevention and Treatment Block Grant and Community Mental Health Services Block Grant Application. Trenton, NJ: New Jersey Department of Human Services.

Pyle, Thomas H. (2012). Value: A better measure for health care and mental health services. Unpublished paper.

State of New Jersey. (2013). The Governor's FY 2014 budget. Trenton, NJ: New Jersey Department of the Treasury, Office of Management and Budget,.

Also: Slides available at www.psychodyssey.net.