Business Case Template v1

HEADER

Project Name: Simple Business Case Template

Request Date: 5/1/2012

Project Overview:

Business Requestor: Nina Boze

Impacted HPs and Depts: Jane Dawson

Total Cost: $ 391,402.60

Total Benefit: $ 482,817.00

Investment Analysis

Create and utilize a standard business case template to allow for project submission that can be used across the organization.

Requesting HP / MHI Dept

NPV $ 41,410

ROI 23%

IRRBreakeven Yr Year 3

COSTS

Implementation

YR 1 YR 2Hardware: $ 10,000

Software: $ 60,000

Internal Labor: $ 129,324

External Labor: $ 67,149

Leasehold & Improvements: $ -

Other: $ 6,600

Total: $ 273,073 $ -

On Going Maintenance

Hardware: $ - $ -

Software: $ 60,000 $ -

Internal Labor: $ 51,730

External Labor: $ -

Leasehold & Improvements: $ -

Other: $ - $ -

Total: $ 111,730 $ -

HEADER

Capital Project: Y

Project Risk: MED

Project Sponsor: Jane Dawson

Strategy:

Regulatory: 0

Total Hours: 1470

Project Duration: 2


MHC, MHW, MHM, MHWI

YR 3 YR 4 YR 5

$ - $ - $ -

$ - $ - $ - $ - $ - $ -

$ - $ - $ -

$ - $ - $ -

Simple Business Case Financial Calculatorintended for projects less than $250,000; 1000 - less than 10,000 hours; 1 year or less

A. Project Investment (Project < 12 months)

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7

ImplementationMCO Business 2.0 0.5 0.5 1.0IT (Shared Service) 1.0 1.0 1.0 1.0MMS 1.0 1.0 1.0 1.0Training HeadcountInternal / Staff Cost $ 43,108 $ 26,943 $ 26,943 $ 32,331 $ - $ - $ - Training Headcount 0.0 0.0 0.5 0.5External / Contractor Headcount 0.5 1.0 1.0 1.0External / Contractor Cost $ 7,461 $ 14,922 $ 22,383 $ 22,383 $ - $ - $ - Travel - trips per month 1.0 0.0 0.0 2.0Cost of travel $ 2,200 $ - $ - $ 4,400 $ - $ - $ - Hardware $ 10,000 $ - $ - $ - $ - $ - $ - Software $ 60,000 $ - $ - $ - $ - $ - $ - Leasehold / Building $ - ### $ - $ - $ - $ - $ - Furniture / Fixtures $ - ### $ - $ - $ - $ - $ - Other $ - ### $ - $ - $ - $ - $ -

MaintenanceMCO Business 0.2 0.2 0.2IT (Shared Service) 0.2 0.2 0.2MMS 0.2 0.2 0.2Training HeadcountInternal / Staff Cost $ - $ - $ - $ - $ 6,466 $ 6,466 $ 6,466 Training Headcount

External / Contractor Cost $ - $ - $ - $ - $ - $ - $ - Travel - trips per month 1.0 0.0 0.0 2.0Cost of travel $ 2,200 $ - $ - $ 4,400 $ - $ - $ - Hardware $ - ### $ - $ - $ - $ - $ - Software $ 60,000 $ - $ - $ - $ - $ - $ - Leasehold / Building $ - ### $ - $ - $ - $ - $ - Furniture / Fixtures $ - ### $ - $ - $ - $ - $ -

External / Contractor Headcount new contractors

Other $ - ### $ - $ - $ - $ - $ -

Yearly Recurring CostsHardware Maintenance $ - Software Maintenance $ - Miscellaneous $ -

TOTAL $ COSTS $ 184,969 $ 41,865 $ 49,326 $ 63,514 $ 6,466 $ 6,466 $ 6,466

B. Net Impact / Benefits COST REDUCTION Year 1 Year 2 Year 3 Year 4 Year 5

FTE Decrease / (Increase) 2.0 2.0 2.0 0.0 0.0Savings from deceased FTE $ 139,272 $ 139,272 $ 139,272 $ - $ - Reduction in support cost $ - ### $ - $ - $ - Reduced HW / SW support $ 13,000 ### $ 13,000 $ 13,000 $ 13,001

Total Savings $ 152,272 $ 152,272 $ 152,272 $ 13,000 $ 13,001

One time savings / benefits $ -

NEW REVENUEExternal Revenue $ - ### $ - $ - $ - Other Income (explain) $ - ### $ - $ - $ -

Total Revenue $ - $ - $ - $ - $ -

TOTAL $ BENEFIT $ 152,272 $ 152,272 $ 152,272 $ 13,000 $ 13,001

C. Investment Analysis

Year 1 Year 2 Year 3 Year 4 Year 5Undiscounted Net Benefit $ (239,131) $ 152,272 $ 152,272 $ 13,000 $ 13,001

Discount Factor 1.0 0.9 0.8 0.7 0.7 PV of Net Cash Flows $ (239,131) $ 137,703 $ 124,528 $ 9,614 $ 8,695 Cumulative PV Cashflows $ (239,131) $ (101,428) $ 23,100 $ 32,715 $ 41,410

NPV= $ 41,410

ROI= 23%

IRR =

Breakeven Yr = Year 3

Blended hourly rate project contractor $ 90 Please check box if default assumptions have been changed.

Blended hourly rate project staf $ 65 Cost of Capital* 10.58%Stand workdays per year 248.7Stand workdays per month 20.7Avg staf billable hours per day 8Avg contractor billable hours per day 10Avg cost per trip (4 days on site) $ 2,200 Blended hourly rate replaced staf $ 35

*Current MHI estimated cost of capital assumption

G. ASSUMPTIONS (#'s in green can be modified)

Month 8 Month 9 Month 10 Month 11 Month 12 TOTAL

$ - $ - $ - $ - $ - $ 129,324

$ - $ - $ - $ - $ - $ 67,149

$ - $ - $ - $ - $ - $ 6,600 $ - $ - $ - $ - $ - $ 10,000 $ - $ - $ - $ - $ - $ 60,000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -

0.2 0.2 0.2 0.2 0.20.2 0.2 0.2 0.2 0.20.2 0.2 0.2 0.2 0.2

$ 6,466 $ 6,466 $ 6,466 $ 6,466 $ 6,466 $ 51,730

$ - $ - $ - $ - $ - $ -

$ - $ - $ - $ - $ - $ 6,600 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 60,000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -

$ - $ - $ - $ - $ - $ -

$ 6,466 $ 6,466 $ 6,466 $ 6,466 $ 6,466 $ 391,403 <--- If red, these costs exceed the Small Project limit of $250,000

TOTAL

$ 417,816

$ 65,001 $ 482,817

$ -

$ - $ - $ -

$ 482,817

TOTAL $ 91,414

$ 41,410

If red, these costs exceed the Small Project limit of $250,000

BUSINESS DATA INPUT - PROJECT INTAKE

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PROJECT HEADER:Project Name: Simple Business Case Template Request Date:

Business Requestor: Nina Boze Capital Project (Y/N):Requesting HP / MHI Dept MCO, MMS Total Project Hours:Business Project Manager: Nina Boze Requested Start Date:

Project Sponsor: Jane Dawson Expected End Date:Executive Sponsor: Jane Dawson Duration

MHC, MHW, MHM, MHWI Business Complexity: Operation Plan Strategy: Growth Technical Complexity:

Regulatory? N Project Class (IT/Business):Reference the regulatory rule: Project Type:

BUSINESS STAFFING HOURS:

HP Hours: 520 UM/CM:

Clinical Programs: 0 Stakeholder Experience:

Claims Ops: 30 Corporate Dev:

Configuration: 120 MMG:

Provider Network Strategy: 0 Credentialling:

Business Analyst: 180 Enrollment:

Project Management: 180

TOTAL BUSINES ESTIMATED HOURS: 1070TOTAL APPROVED BUSINESS HOURS:

List Impacted HPs and Coroporate Departments:

Project Priority:(Normal, High, Critical)

Project Risk:(Based on complexity and Duration)

Member / Provider Services:(Call Center)


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PROJECT DETAIL:

Project Overview/Description:


Project Scope and Approach:

Quantitative Benefits:

Qualitative Benefits:


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Proposed Solution Options:

TOTAL QUANTITATIVE BENEFITS:TOTAL QUALITATIVE BENEFITS:

Recommended Solution:


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5/1/2012Y

24,220 8/1/2012

9/30/20122

HIGHLOW

MED

0

0

0

0

0

0

40


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IT DATA INPUT - PROJECT INTAKE

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PROJECT HEADER:Project Name: Simple Business Case Template Project ID (from MOPPS):

SDM: New Project Request:Workflow: IT Tower:

IT Project Manager: IT Manager:IT Director: Approval Route:

IT Budget Responsibility:

IT STAFFING HOURS:Infrastructure 120 Other:

O&M 0 Other:Developer 0 Other:Telecomm: 60 Other:

Other: 0 Other:Other: 0 OtherPMO: 180 Other

TOTAL ESTIMATED IT HOURS: 400TOTAL APPROVED BUSINESS HOURS:

IT DATA INPUT - PROJECT INTAKE

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000000

40

Low = 1Med = 2High = 3

Duration

Business Complexity: HIGHTechnical Complexity: LOW

MED

Project Type ExamplesBusiness Transformation HCV Redesign, Quality Project / Program, HC Reform 2014, Provider Data Management (PIM)DiscoveryRegulatory / ComplianceNew Business New Health Plan, New Clinic, DDI, Expansions, New HP ConversionsTechnology Software / Hardware Projecs, Infrastructure, Re-ArchitectureKTLO O&M, Production SupportOperational Process Improvement, Business Improvement, Enhancements

Low = 3 Months or lessMed = 3 - 6 monthsHigh = 6 months or greater

Project Risk:(Based on complexity and

Duration)

HCV Redesign, Quality Project / Program, HC Reform 2014, Provider Data Management (PIM)

New Health Plan, New Clinic, DDI, Expansions, New HP ConversionsSoftware / Hardware Projecs, Infrastructure, Re-Architecture

Process Improvement, Business Improvement, Enhancements

Low = 1-2 Business Units, Clear solutionMed= 3-4 Business Units

Low = 1-3Med = 3.1-6High = 6 or greater

Business Case Template v1

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