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Home My WebLink AboutAssumptions - Case Management Only.pdfCASEMANAGEMENTOUTSOURCINGCOST-BENEFITANALYSISASSUMPTIONS August23, 2012 Thisanalysisisacomparisonoftheprogrambudgetsforstayingwithinthecountystructureintheir currentformandforoutsourcingthecasemanagementportionofeachforMentalHealth (MH), IntellectualDisabilities (ID), andEarlyIntervention (EI) programs. Itisintendedtoshowthedifferencein revenueandcostsofchangingtheprogramsandkeepingtheadministrationonlyportionunderthe county. Theassumptionsbehindthefiguresaredefinedbelow. FINANCIAL 1.Thestatebudget2012-2013carriesrevenuecutsandaproposedblockgrantprogram. We assumedrevenuepass-thruconsistentwithadoptedstatebudgetandthateachprogramwill receivetheirshareasallocated. Seeadditionalrevenueassumptionsbelow. 2.AssumedJuly1, 2012throughJune30, 2013asfirstyearofactivity. Thisanalysisiscompleted for1yearonly. ADVANTAGES & DISADVANTAGES Aredefinedinaseparatedocument. PERSONNEL TableofOrganization – SeeExhibitA. Itremainsthesameasiscurrentlysetupwiththeexception thatallcasemanagementstaff, fromtheCaseworkerDirectordownplusoneadministrativestaff areremoved. ALLOCATEDANDSHAREDCOSTS CentralServiceAllocatedCosts (CSCAP): includesthefollowingcomponentsandareexpectedto remainwiththeadministrative-onlystructure. TheseincludeEquipmentdepreciation, Propertyand LiabilityInsurances, RetirementAdministration, Commissioners’ Office, CountySolicitor, County ControllerandCountyTreasurer, GeneralAdministrativeCosts, andCentralTelephone. Sincethere wouldbefeweremployeesandlessactivity, someofthesecostsareexpectedtogodowninthe secondyearonceactualutilizationisknown. Shared/allocatedcostsincludeFiscalSupport, FiscalAccountsPayable, Purchasing, Human ResourcesandRiskManagement, HumanServicesAdministrationandFultonCountyOversight, and InformationServices (GeneralandDirect). Theyareexpectedtodecreasebytheamountpreviously relatedtocasemanagementservices. OTHERCOSTS 1.Occupancyexpense – Thespacecurrentlyoccupiedbycasemanagementstaffisassumedtobe vacated. Ifanoutsideproviderwouldelecttocontinuetousecountyspace, itisassumedthat revenuefromthiswouldapproximatecost, makingtheimpactcost-neutral. 1 CASEMANAGEMENTOUTSOURCINGCOST-BENEFITANALYSISASSUMPTIONS August23, 2012 2.Generaloperatingcosts – Thesecostsincludepostage, employeetravel, supplies, training, minorequipment, auditfees, copierleases, consultantsandgeneralprogramexpenses. Amountsincurredbycasemanagementoperationshavebeeneliminated. 3.Capitalpurchases – Capitalincludescomputersandrelatedequipment. Amountsincurredby casemanagementoperationshavebeeneliminated. PURCHASEDSERVICES Purchasedservicesincludepaymentstooutsideserviceprovidersforservicestoclientseligible undertheMentalHealth, IntellectualDisabilitiesandEarlyInterventionprograms. Thesecostsare basedonbudgetedservicesusingestimatedallocationsfor2012-2013. Thiscostincreasesby 820,300, $169,200, and $179,900forMH, IDandEIrespectivelyifcasemanagementservicesare outsourced. REVENUE 1.Interestincome – Interestincomeisbasedoneachprogram’spreliminary2012-2013budget. 2.Federal – Federalrevenueisbasedontheprograms’ preliminary2012-2013budgets. 3.State – Staterevenueisbasedonthenewlypassedbudget, includingimplementationofa HumanServiceBlockGrant, andreductionsof7.6% and9.2% innumerousfundingcategories forMentalHealthandIntellectualDisabilities, respectively. 4.ChargesforServices – Maintainingthecurrentstructurewouldresultinanincreaseoverfiscal year2012forMentalHealthascertainserviceswillnowbereimbursedthroughmanagedcare. Assumingoutsourcingofcasemanagementresultsindecreasesof $1,161,800, $478,100, and 167,100respectivelyforMH, IDandEIastheprovideroftheserviceswillbilldirectlyandthe fundswillnotpassthroughthecounty. 5.OtherMiscellaneousRevenue – Otherrevenueincludesmiscellaneousgrantsandothersources. 6.CountyShare – CountysharerepresentstherequiredmatchthatiscontributedbyFranklinand FultonCountiesaswellasanyovermatchandisbasedonthepreliminary2012-2013budgetsfor theprograms. 2