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Program Update Karol Swartzlander ADRC Program Director California Health and Human Services Agency ADRC Financial Planning Model Webinar February 6, 2014

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Post on 17-Dec-2015




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  • Program Update Karol Swartzlander ADRC Program Director California Health and Human Services Agency ADRC Financial Planning Model Webinar February 6, 2014
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  • Agenda Welcome & Introductions Background Introduction of ADRC Financial Planning Models Michael Priniski, Mercer Terri Sult, Chi Partners (in collaboration with Sac State Univ.) Q & A 2
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  • Consultant Teams Mercer (The Scan Foundation Funding, San Diego and Nevada ADRCs) Michele Walker, MSG, MPA Mary Sowers, BA Mike Priniski, CPA Sacramento State University, College of Continuing Education (CMS Grant Funding, Alameda ADRC) Deborah Hunt, PhD Lindle Hatton, PhD Terri Sult, MBA 3
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  • Background California is undergoing a system transformation for the delivery of Medi-Cal benefits statewide Californias No Wrong Door ADRC Model: Core partnership between AAA and ILC and then other LTSS network providers ADRC partnerships are well positioned within their communities to play a vital role in this transformation Unparalleled knowledge of the complex service delivery system Track record of helping individuals understand their options and choices available in the community, including Medicare, Medicaid, Veterans Affairs, and other public and private LTSS delivery systems 4
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  • Background Local organizations indicated they needed technical assistance and tools to engage in the changing market place In May 2013, released a ADRC service cost tool developed by Peggy O'Brien-Strain of Mission Analytics Group, Inc. adapted from a cost/budget tool created by Tom Duke, Budget Manager for the County of San Diego, Aging and Independence Services 5
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  • Purpose of ADRC Financial Models Designed to help AAAs, ILCs, and other ADRC partners develop financial projections for business planning purposes Tools can be used evaluate the financial viability of specific programs or services, develop cost estimates to inform pricing discussions with potential funders, develop staffing plans, and/or provide estimates of the amount of reserves needed to cover losses while in the planning or ramp-up phase of new services or products. 6
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  • Comparing ADRC Financial Models Mercer: Model A General budgeting & financial viability model Yearly 5 years FTE ADRC as a whole Inflates Services Service cost tool 7 Sacramento State: Model B More detailed budgeting & financial viability model Monthly 3 years FTE allocation by multiple services Inflates Services & Revenue Service cost tool
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  • Tools and Resources California ADRC Website The Scan Foundation unity-based-organizations 8
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  • ADRC Mercer Business Model February 6, 2014 Government Human Services Consulting
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  • Project Goal: Establish a replicable business model for Aging and Disability Resource Connection (ADRC) partner organizations focused on the purchase of integrated long-term services and supports (LTSS) by managed care and other potential buyers.
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  • MERCERMay 13, 2015 11 Mercer Business Model The business model provides an overview on how the ADRC partnerships plan to operate, deliver value to customers, and how it will remain financially viable The business model was developed in conjunction between Mercer and 2 ADRCs It will help determine the revenue needed to break even as a sustainable ADRC without subsidies from other programs
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  • MERCERMay 13, 2015 12 Mercer Business Model Given the potential differences in ADRC systems, the model was constructed to be adapted accordingly The business model also needed to reflect the ADRC underpinnings, has built in some logic to remind partners to engage in critical analysis of business opportunities to ensure congruence with core values/core functions The model takes into account the budgeting needed for measuring financial viability and sustainability to help ADRCs make strong business decisions
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  • MERCERMay 13, 2015 13 Mercer Business Model The key components that were asked during the business model development are: Who are the key partners of the ADRC? What are the key activities of the ADRC? What are the key resources of the ADRC? Who/what are the ADRC customer segments, how to enhance the customer services, and what are the channels to address customer needs? What value does the ADRC bring to customers/contractors?
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  • MERCERMay 13, 2015 14 Mercer Business Model Components of the business model that projects up to 5 years includes: Grants and Contributions Other Current Contracted Services Agency Staff General Administration Sellable Services
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  • Presented by: Terri Sult, MBA February 6, 2014
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  • Purpose of the Model To help ADRC partners develop financial projections To assess the financial viability of specific programs or services To develop cost estimates to inform pricing discussions with managed care plans or other funders To provide estimates of reserves needed to cover losses associated with implementing new products or services
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  • Using the Model Enter service volume assumptions: The projected volume for each type of service The anticipated start date for each service Non-service-specific grant funds Enter staffing assumptions: Position titles and salaries # of FTEs utilized for each service % benefits and annual inflation factor
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  • Using the Model Enter direct cost assumptions for each service Select an indirect allocation / overhead method The model will then generate total estimated costs for each service Enter revenue assumptions: Per-unit or total revenue for each service
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  • Using the Model The model will generate financial projections: For each service on a monthly basis for 3 years With detail by service for volume, revenue, staffing, non-labor costs and net-operating income/loss Showing the total projected net income / loss Modify assumptions to test different scenarios
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  • 20 Presenter Contact Information Karol Swartzlander [email protected] Michael Priniski [email protected] Terri Sult [email protected]