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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

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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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Sample Analysis Data

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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



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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Unit Cost Data

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III. Developing The Right Technology Strategy

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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 3. Creating Process Map Of Revised Service Line

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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



• 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



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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Technology Planning Case Study #1

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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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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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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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Technology Planning Case Study #2

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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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#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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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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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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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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Technology Planning Case Study #3 - Workgroup

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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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Technology Planning Discussion Questions

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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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Questions & Discussion

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