The ICC Business Plan: Implementation, Challenges, Successes

1
The ICC Business Plan Implementation,
Challenges, Successes

• Paul Gionfriddo
• June 2003

2
Session Outline

• ICC Business Plan.
• Process for selling the plan from the top level
  to the front line (3-part sell).
• Process for implementing the business plan.
• Challenges successes.
• Learnings recommendations.

3
The Business Plan

• Business Objectives Differ from ICC
  Mission/Objectives.
• ICC Business Plan Acknowledged and Addressed
  Risks to Members.
• Business Plan Incorporated Marketing Strategies.
• Business Plan Identified Sources of Sustaining
  Revenues.

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Business Objectives Differ from ICC
Mission/Objectives

• ICC Mission Affordable access to quality health
  care for all residents of Williamson, Travis, and
  Hays Counties.
• Business Objectives (2001)
• To reduce costs to ICC members for caring for the
  medically indigent, through collaborative
  initiatives.
• To support and help launch a funding initiative
  for safety net health care providers by 2004.
• To generate annual income of up to 1 million for
  ICC operations by 2004.

5
ICC Business Plan Acknowledged and Addressed
Risks to Members

• Loss of brand identity.
• Loss of control of patient data.
• Loss of services.
• Loss of revenue and market share in reorganized
  system.
• Increase of market share without increased
  revenues.
• Loss of values.

6
Business Plan Incorporated Marketing Strategies

• Adoption of Communications Plan and Strategies
  for reaching patients, providers, and public.
• Development of ICC Logo, and I-Care program
  aimed at patients.
• Development of mass media messages for public.
• Implementation of Web-based communications
  strategies for partners.

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Business Plan Identified Sources of Sustaining
Revenues (in order)

• Partner contributions from reduced costs of doing
  business (leads to business rationales).
• Foundation grants and awards.
• Government grants.
• HFD Funding (if approved by voters).
• Fees for use of services and aggregate databases.
• Self-sustaining MPI/CDR program through fees
  and/or assessments.

8
Process for Top Down and Bottom Up Sale

• Board
• Committees
• (e.g. Fast Track Implementation Team (FIT), Legal
  Team, Pharmacy Committee)
• One-on-one and Training (Medicaider)

• CEO Representation
• Manager/Business Owner Buy-In
• Front Line Staff

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Process for Implementation of Business Plan

• Grant objectives aligned with business
  objectives.
• Development of value props and business
  rationales for and by members.
• Productive use of outside parties (e.g. HFD,
  Travis County Medical Society).
• In bad times, its about leveraging resources.

10
Challenges

• The Plan wouldnt mean anything unless it
  actually (and accurately) described the business
  activity of the entity. It isnt the strategic
  plan.
• Before developing the plan, Board and staff
  needed to agree on what we wanted to happen, and
  what we would do to get us there.
• We needed to keep the Business Plan in focus.
• The ICC and its members had to write clear,
  concise value propositions.
• We needed a business rationale for each major
  initiative.

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ICC Sample Value Props.

• Effectively channel more patients into funded
  sources reducing the overall proportion of self
  pay patients.
• Reduce the number of ambulatory care sensitive
  admissions to local hospitals by providing
  preventive care, chronic disease management, and
  a broad range of protocols and pathways for
  persons with asthma, diabetes, and other
  conditions.

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ICC Business Rationales

• One Page Outlines
• Summary.
• Rationale for the Initiative.
• Development Costs.
• Ongoing Costs.
• Return on Investment.

13
Successes

• Sticking to the plan enabled us to focus our
  efforts and develop our Big Five MPI/CDR
  Common Eligibility Disease Management New
  Access Initiatives Project Access, Seton Care
  Plus, MAP Expansion Pharmacy to meet Business
  Objectives 1 and 3 (Support for members and
  support for the ICC).
• Sticking to the plan enabled us to recruit others
  to carry the ball on HFD funding (i.e., the ICC
  was not going to morph into a political action
  committee) to meet Business Objective 2 (Support
  for a HFD).

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Focusing on Members Quantifying Success

• Big 3 members planning for core support for ICC
  in 2004, 2005.
• ICC members have pledged 100,000 to Medicaider.
• 340B expansion identified for 700 MHMR Clients.

• 340B opportunity found for 1-2 more DSH
  hospitals.
• 15-20 of uninsured patients are Medicaid
  eligible.
• Value of Project Access donated care to be
  calculated.

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Learnings and Recommendations

• Align Business Plan with Strategic Plan and
  Vice-versa.
• Develop the Business Plan as the plan for
  sustainability.
• Create and quantify business rationales for every
  major business activity.
• Stick with what you do not with which you dont
  (e.g. outreach, Promotores).

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ICC Quick Stats, May 2003