The ICC Business Plan: The ICC Business Plan: Implementation, Implementation,

Challenges, SuccessesChallenges, Successes

Paul GionfriddoJune 2003

Session OutlineSession 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.

The Business PlanThe 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.

Business Objectives Differ Business Objectives Differ from ICC from ICC

Mission/ObjectivesMission/ObjectivesICC 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.

ICC Business Plan Acknowledged ICC Business Plan Acknowledged and Addressed Risks to and Addressed Risks to

MembersMembersLoss 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.

Business Plan Business Plan Incorporated Marketing Incorporated Marketing

StrategiesStrategies 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.

Business Plan Identified Business Plan Identified Sources of Sustaining Sources of Sustaining Revenues (in order):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.

Process for Top Down Process for Top Down and Bottom Up Saleand Bottom Up Sale

Board Committees

– (e.g. Fast Track Implementation Team (FIT), Legal Team, Pharmacy Committee)

One-on-one and Training (Medicaider)

CEO RepresentationManager/Business

Owner Buy-In

Front Line Staff

Process for Process for Implementation of Implementation of

Business PlanBusiness PlanGrant 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, it’s about leveraging resources.

ChallengesChallenges The Plan wouldn’t mean anything unless it

actually (and accurately) described the business activity of the entity. It isn’t 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.

ICC Sample Value Props.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.

ICC Business RationalesICC Business Rationales

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

SuccessesSuccesses 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).

Focusing on Members: Focusing on Members: Quantifying SuccessQuantifying 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.

Learnings and Learnings and RecommendationsRecommendations

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 don’t (e.g. outreach, Promotores).

ICC Quick Stats, May ICC Quick Stats, May 20032003

  Number enrolled

Providers Participating

MPI/CDR 136,178 12 Common Eligibility 6,229 11Disease Management

404 5

Project Access 48 562 physicians

Seton Care Plus 4,557 SetonMAP Expansion 2,756 City of

AustinPharmacy n/a