MAKING THE BUSINESS CASE FOR AT REUSE WEBINAR
~ MARCH 29, 2011 ~
JOY KNISKERN: This is Joy Kniskern with the Pass
It On Center. And today we'll be talking about Making the
Business Case for AT Reutilization.
First what I'd like to do is take a few moments to
orient you to some of the accessibility features with our
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transcriptionist with us today, and so she will be taking
transcripts. And that's Kimberly Griffin.
Thank you, Kimberly.
And if you do have technical problems, you can call
Caroline Van Howe, who's with us today.
Hello, Caroline.
And she's at (415) 458-3597. Or you can e-mail
her -- actually, you can type a message in the public chat,
and she can respond to your questions that way as well.
Next slide.
Okay. And we're refreshing on our screen here. So
basically, if you want to look at the learning package for
today's webinar, you can click -- you can go to that
website, and you will see all the slides that we're working
with today, "Building the Business Case For AT Reuse,"
under "New to the knowledge base."
All right. Let's move on.
And for those of you who are interested in getting
CEUs or CRCs, we have the various links to get that
information. If you're asking for CEUs or CRCs, we ask
that you log back in and you put your full name and your
organization so we can provide that to you.
And today joining us we have Sonja Schaible, who is
our executive director with the FREE Foundation in
Virginia; and Barclay Shepard, who's the AT program
specialist with Virginia Assistive Technology System; and
then Sara Sack, who's been with us on previous webinars.
She's the Director of Assistive Technology for Kansans.
And Trish Redmon, who's a consultant with the Pass It On
Center. Thank you all for joining us today.
I wanted to make a few quick comments. And that
is, I just received information from the National
Information System on Assistive Technology. Those of you
who know Dine Golden know that she's been working with the
data system for all the AT programs.
And the information we received on data is that in
2006 we've known that devices that were refurbished and so
on was 5,602. Recent data for 2010 shows a huge jump to
35,844 devices that were reutilized. And that also
includes exchange programs and open loans.
And the total amount of savings that were reported
from all the state AT programs using this system was a
little bit under $18,000.
This is very, very significant. And I'm bringing
this up because today you're going to learn how to go
beyond those basic figures, which is very important if
you're wanting to sustain and grow your program, very, very
important. This basic information is a starting point.
But if you're operating a reutilization program and
you're looking at funding resources or you're looking at
ways to improve the efficiencies of your program, then the
questions we'll be answering today are, what kinds of data
are you going to need?
And through our different speakers today, you'll
hear from program examples, and you'll get, I think, some
very useful data and information that will help you.
So with that, I'm going to turn this away to Sonja.
I will review our learning objectives briefly.
We're going to be developing a business case study of your
program. It should be a sustainability priority. You're
going to be looking at how to identify some target
audiences and specific data to make the business case for
AT reuse. And then you'll be learning about financial data
to compute return on investment for AT reuse data.
You'll also get the beginnings of what you need to
know if you were to develop a business plan for your
program using the business plan guide that Trish Redmon has
developed for us. And we know of a couple of different
programs who've already used this guide to really develop a
solid business plan.
So with that, I'll turn it away to Sonja. Glad you
could join us today.
SONJA SCHAIBLE: Thank you, Joy, and all of you at
the Pass It On Center.
This is Sonja Schaible with the FREE Foundation and
I'm going to start off with making your case stand out
through outcomes data.
Next slide.
Why do I need outcome data? Basically outcome data
is important for a few reasons. It shows equipment donors
the therapeutic and financial impacts of gifted equipment.
It also shows grantors and contributors the therapeutic and
financial impacts of their funding.
You know, there's a lot of great programs out
there, a lot of nonprofits all fighting for the same
dollars right now with this economy. And by us being able
to stand out and show more objective evidence as to why and
how your program is impacting the community that these
grantors and contributors live in and serve in, then that's
going to help you to get the dollars maybe over another
great program that's also going for it.
Another thing that helps with having outcome data
is it just helps to continually test, monitor, and validate
your service model. It's a great way to make sure that
what you're doing is what you want to be doing. If the
numbers are low, then you know you need to make some
changes. So it's a great evaluation tool.
Next slide.
Where do I start? Well, first of all, I think
definitely information you want to remember is that it
doesn't happen overnight. It does take time to develop
your case statement.
The four areas that we have identified as necessary
is -- the first one is, identify the problem that your
organization addresses. Secondly, determine the
consequences if your organization wasn't providing these
services.
So the problem is what's happening in the community
that's not good, and the consequences are what would happen
if your organization wasn't there to provide that service
to make those consequences be less or not at all.
Research costs of these determined consequences.
So you put a dollar value to these consequences. And then
next you're going to collect the data to determine the
impact.
So, you know, once you've determined the cost, then
you're going to have that to help you. But now you need to
know to what extent your data helps to apply those numbers
to your data to see the extent of that impact.
Next slide.
Identify the problem being addressed. So now we're
going to take each one of those sections and go a little
bit farther in explaining to you what they mean.
So how is your program helping the client and the
community you serve?
It's a good idea to just sit down with your board
members, your staff and just determine what exactly your
program is helping the client in the community you serve.
And what is your program helping to prevent in the
community from occurring. If your program wasn't there,
what would be happening?
For example, the FREE Foundation's problem is that
in Virginia almost one of every five adults does not have
health insurance. This means that 20 percent of the
state's adult population does not get needed health care
services, medicines and equipment.
Of course equipment is the important one for us.
Even some with insurance could not get all the equipment
they needed to fully recover. So once again, the problem
is that 20 percent of Virginians are not getting the
medical durable equipment that they need to fully recover.
Next slide.
So now we know the problem. So now let's determine
the consequences of that problem.
The consequences of this shortfall, this problem
are dramatic to individuals, families and the health care
system. Without the needed equipment, people could not
recover and return to a life of independence. So the
individual is definitely -- as a consequence, there's
definitely an impact to the individual because their
independence has been decreased as well as their quality of
life.
That, of course, also impacts the family because
now that's the persons who are going to have to help take
care of that family member. And often their health
declined, and falls occurred upon return home without
necessary devices.
So what happens when you don't have the appropriate
piece of medical equipment? You try to make unsafe
transfers. You try to get from point A to point B unsafely
with walking or et cetera. And you fall because you're not
doing it safely, and you don't have the right equipment.
So the biggest consequence for us, besides just
their health decline, is the falls.
Next slide.
So if we take it a step farther and say, Well, what
happens when someone falls or if someone has some kind of
secondary medical condition because they're sedentary and
haven't been able to get around like they should? So
you've got to think of the costly results of these
consequences.
For the FREE Foundation, what we had determined
was, once a person falls because they weren't able to move
safely in their home, that they ended up having to go to
the E.R.
They ended up having to go to the doctor because of
this fall or because of their condition. They may have to
stay in a hospital because they've broken a bone, and now
they're going to have to stay for a while to get that taken
care of.
They may not be able to return home and have to go
to a skilled-nursing facility or an assisted-living
facility because they're not independent. They can't stay
home alone. So if someone can't take care of them from
their own family, then they're going to have to go into one
of these long-term-care facilities.
Maybe lost wages of the individuals who cannot
return to work. So if the person who doesn't have the
equipment they need is the person who fell, they can't go
back to work. Or if it's the person who needed the
equipment in order to be able to get to work doesn't have
the equipment, they can't get to work.
Lost wages of family members forced to leave jobs
to become caregivers. So if someone doesn't have the
equipment they need to be independent, then if they're not
independent, they're dependent on someone, and it's usually
the family members that have to quit their job to stay home
now to take care of that person.
So it certainly has that ripple effect. It not
only affects the client that's being served but also the
whole family and the community at large.
Let's see. That's the next slide.
So once you've determined your consequences and
that there's a cost related, then you need to determine
what those costs are. So you're going to research. And
again, this is time consuming. Don't expect instant
results.
Some websites that we have found helpful are the
U.S. Department of Health and Human Services, American
Hospital Association, U.S. Census Bureau. Also down below
you can see the National Center For Health Statistics and
the WHO Statistical Information System.
Also locally there are lots of times community
service organizations who do local census services. So
with us we have the Council of Community Services who does
statistics locally. They'll send out surveys. And we can
find out -- if we're looking for funding from local grants
here in our area, then they want to know really how we're
specifically targeting this community, and we can find out
statistics just for this community. So that's always
helpful as well.
Again, once you even get on the site, say you go to
the U.S. Department of Health and Human Services, you must
also remember that the numbers aren't going to pop out at
you. You still have to search even the sites that you know
you can get information from. So it is a time-consuming
step process, but it's worth it when you get the
information.
Next slide.
So we, of course, had done our research. And these
are the costs that we had found using the FREE Foundation
example.
The average cost of an E.R. visit was $1,896. The
average cost of a typical doctor's visit was $155. Average
daily cost of a hospital stay was $1,149. And further
research indicated that a typical stay is usually five
days. So that cost was $5,745.
Average annual cost of a skilled-nursing facility
is $74,095. Further research indicated that the average
stay for recovery is usually 50 days. So we took $74,095,
divided it by 365 days, and then took that number times 50
to get the $10,150.
The average annual cost to stay in an
assisted-living facility, $35,616. Did the same
calculation to get the 50 days, which is the average stay.
That made it $4,879.
The financial impact of a job loss to a family of
three at poverty level is $17,170. Again, we took this at
poverty level. We serve people up to 200 percent above
poverty level. So that really is the lowest, most
conservative figure there for the impact on a family. It
could definitely be higher.
We tend to go with more the conservative figures
and certainly let our funders know that that's the route
that we've gone.
Next slide.
So now that we have the costs of the consequences
that occur from the problem, then we try to go and collect
data to determine the actual impact that those costs have.
What we do at the FREE Foundation is we've
developed a questionnaire that captures the desired outcome
data.
So you need to think what is it that I'm looking
for? What questions can I ask that are certainly going to
give me those answers that I need to find out?
Also you want to determine an appropriate time
lapse before calling or mailing the questionnaire. We
found that calling works much better than mailing. People
tend to move around, or they don't return questionnaires if
you send them in the mail. We haven't had good success
with that.
So we call on the phone. We give the gift
recipient 30 days after receiving their equipment before we
call them. So we feel that that's an ample amount of time
that they've used the equipment and learned the benefits of
it and can give us some good valid information from the use
of that piece of equipment.
Then again we probe the recipients to determine if
the equipment they received is solving the need that
brought them to our program. So that seems to certainly
work best for us.
Next slide.
So determine how equipment alleviates problems. So
the FREE questionnaire is tailored to determine how FREE's
program helps alleviate the problem.
Questions are designed to determine if the
recipients have become more independent; able to take care
of themselves well; had fewer falls; reduced the number of
hospital stays, E.R. visits, and doctor visits; been able
to continue living in their current residence without
having to move to a facility that provides a higher level
of care, which of course are your skilled-nursing
facilities or your assisted-living facilities or even into
a house with someone else, with a family member, which
would require a higher level of care.
So again, these are consequences that we're
checking out to see how we've helped to reduce those.
Next slide.
Our outcomes. We've been doing outcomes since
2004, I believe -- 2002. Excuse me. But for the last five
years these are what our outcomes have been.
And you can see for 2010 greater independence is 96
percent of those that we have given equipment to. We have
decreased falls by 88 percent as well as E.R. visits by
88 percent. We have decreased hospitalizations by 93
percent. And those that were able to stay home versus
having to move into a higher level of care was 100 percent.
So we're very proud of our outcomes this year.
And just quickly, if one of those numbers was very
low, say the decreased falls was -- I'm sorry -- I'm kind
of going back here -- was down to say 70 percent, we would
know then to look at that and realize that we need to
evaluate our program and do some research to find out why
that number was so low.
And that's how we can use this to help us with
evaluating our program and making it what we want it to be
at the standard that we want it to be at.
Next slide.
So then you want to put it all together. So we've
determined the problem. We've determined what those
consequences are because of the problem. Then we've put a
cost value, dollar value to those consequences. And then
we've collected data to see how much those consequences are
being prevented.
And now we're going to take that and apply the cost
to that impact, that data. So knowing the outcomes allows
us to project the final financial savings that result from
the equipment gifted.
You can now quantify the real dollar value of your
program's outcomes, and you can determine the appropriate
number of people served to make the resulting cost savings
present a valid picture.
We used a hundred people served. So we collected
all of our data, and we said, "We think that we can take
100 of the people that we served, and that would give us a
good average range of what would show us the whole -- that
would be a good picture of everyone that we serve."
Next slide.
So our cost savings analysis. We did determine
that, for every 100 persons served, the average is that 26
hospital stays were avoided. And we can take -- you know,
the average stay is five days, which was $1,149. Take that
times 26 to get the true impact of hospital stays avoided.
29 emergency room visits were avoided; same thing.
11 moves to skilled-nursing facilities were avoided.
Again, times the 50 days was the average length of stay
times 11. And then 11 moves to assisted-living facilities
were avoided. So same situation. You can take that times
the average stay of 50 days to get what the dollar impact
is for the savings that we've been able to help.
So our cost savings continued. Again, for every
hundred persons served, also 112 falls were avoided. And
one in four falls results in doctors visited. So we of
course divided 112 by four to get 28 and took that times
the average cost of a doctor's visit.
And 16 family members avoided quitting jobs to stay
at home and care for the recipients. Income per family of
three at poverty level is 17,170.
And again I've said here that, for purposes of
conservatism, FREE assumed only one-third of this cost,
which is $5,723, would be borne by the commonwealth of
Virginia. In reality, 100 percent of lost wages will
directly impact families.
So 16 times $5,723 is $91,573. And again, that's
very low. That's only a third of lost wages, that cost,
that impact.
Next slide.
So the conclusion. FREE has estimated the
financial impact of these results. Most data sources are
prior to 2007. But overall estimates are not adjusted
upward for inflation, therefore, underestimate current
costs.
So as you know, a lot has happened with the cost of
living. And the data is from 2007, so this number is very
low. It should be -- could be a lot higher. But the total
cost savings for each 100 recipients served is $465,586.
So next slide.
As you can see, that gives an actual dollar value,
and it certainly stands out and gives us ammunition to
definitely be able to prove that our program saves dollars
for the community as well as subjectively helping the
client that we serve with improved quality of life and
improving their independence.
Cost savings and outcomes data have helped the FREE
Foundation. Again, we have received consistent feedback,
positive feedback from grantors who value our ability to
show measurable results. This has really made us get some
funding that we may not have otherwise because we stood
out.
Knowing their dollars will yield measurable
outcomes has made grantors more willing to invest in us.
People who give money want to see how that money is going
to be used and what the cost savings are. They know that,
like I said, all programs are doing good things, but
they're dollar people, and they like to see dollars.
Our ability to demonstrate quantitative outcome
data has been instrumental obviously in sustainability.
And I think that's the last of my slides.
Any questions? If there are any questions, you can
certainly ask even as the next presenter is going on.
Thank you again, and I'll be listening to the rest of the
presentation.
JOY KNISKERN: Thank you so much, Sonja. We really
appreciate your information. That was really excellent.
And now what you're going to see from Barclay
Shepard is how the Virginia Assistive Technology System
used the data to secure sustainability funding. And the
FREE Foundation is one of their partners in reuse
throughout the state.
So, Barclay, take it away.
BARCLAY SHEPARD: All right. Thanks, Joy.
I want to talk about -- if we could flip to the
next slide, please.
I'm Barclay Shepard with Virginia Assistive
Technology System, as Joy said. And the first slide I just
wanted to show you real briefly just so you know what AT
reuse looks like in Virginia.
And this is our Virginia reuse network and the
location of the programs. And we have a formal and really
a virtual network.
And the formal network comprises of VATS or
Virginia Assistive Technology System, the FREE Foundation,
and the Department of Rehabilitative Services Woodrow
Wilson Rehabilitation Center. So those three programs.
And our informal network comprises of a whole host
of individuals, faith-based organizations, health care
organizations, much like in many of the other reuse
programs across the country.
But for the formal network, that is the AT Act
program. We are located in the Department of
Rehabilitative Services, which is our VR program. And VATS
administers the Virginia Reuse Network.
As Sonja was just speaking for the FREE Foundation,
the FREE Foundation is a nonprofit organization; they're
more than ten years old; and they're housed in eight
locations across the state. And in the graphic I showed of
Virginia, the stars are where the FREE Foundation has
services in the state.
And in Department of Rehabilitative Services,
Woodrow Wilson Rehabilitation Center has a spinal cord
injury unit, and they have a reuse program in that spinal
cord injury unit.
And really the formal network, we all collect
common data, and we share inventory, and we support one
another when individual programs seek funding.
And really VATS is using the data from all of the
partners to sustain the overall network. So each one of
these partners may get funding on their own for their own
program or for certain areas of the state, and we support
that.
But we also -- what we're looking at doing and what
I'm going to be talking about today is using data to find
funding for the entire network, to support the network,
since that's our approach.
Next slide, please.
I put our mission statement up here. Not that we
wanted to spend a lot of time on the mission statement, but
I just wanted to kind of talk a little bit about that the
Virginia Reuse Network supports AT reuse programs and
services that are appropriate, effective, centralized,
sustainable, and are committed to standardized data
collection and best practices/quality indicators for
national AT reuse.
And really, when we started the Virginia Reuse
Network, we included data in our mission statement. And
really we included this slide because we feel that having
data in the mission statement is really highly relevant to
our conversation today in making a business case for AT
reuse. So that's the only real reason I put it in there,
to show you that data is important.
Next slide, please.
Okay. This slide is labeled "No Data...No
Money...No Mission!" And really, within that, this has
become our informal slogan.
I used to -- when I was in high school, I worked
for an accounting department for a Catholic health care
organization. And what we learned was that the nuns were
very tough businesswomen. And we often heard the slogan
"No money, no mission" when the nuns were making business
decisions or tough business decisions.
And really there's no difference. Health care
organizations like a hospital and reuse programs, they're
both businesses, and they both can have a strong charitable
side to them.
So we kind of incorporated -- and it's just
something we started -- the "no data" part. So instead of
just saying "No money, no mission," we informally say "No
data, no money, no mission." And really we say that to
emphasize the importance of data not just as a requirement
but also as a strategy so we can modify our services and
secure funding.
And really, when I'm talking about data, I'm
talking about statistics and outcomes. And really we use
both. Sonja talked about the outcomes a little bit. But
data -- basic demographic data, persons served, devices
gifted, all those things are very important equally as
important as really all the data is equally important.
But what I found is -- and when we're writing
grants or we're trying to secure funding is who we're not
serving or the underserved. So either we're not serving or
we're not serving them to full capacity or we could serve
them better.
Those are really the important persons to look at
if you're looking for funding. And really the reason for
that is it creates a great opportunity. You can say you're
serving this target population, children, or you're not
serving this target population.
But what we've found is that grantors really prefer
new services that are sustainable versus supplying money or
giving money to a continuation of what already exists.
So most grants that we're finding out there all ask
for either adding to an existing service or creating a new
service out there. And that's what they're willing to
support.
With outcomes, Sonja talked a little bit about the
FREE outcome survey. And this is a customer feedback or
self-reporting exercise that they do that I think is really
great. And like Sonja said, it gives us cost savings,
therapeutic benefits. It gives us a little bit more
information than what the typical statistics or typical
data that we would collect would give us. And we use that.
And I'll kind of share that on the next slide in just a
minute.
And the other thing that we've done is really we've
compared ourselves -- how does our program, our state AT
program, how does that compare nationally?
So I mean if we look at 2008 data, we have a pretty
high number of individuals served, a significant amount of
devices distributed, and a significant cost savings when we
compare that to other AT Act programs.
And really we just use this as a strategy to show
that Virginia has a strong program. So when we go out
there and we're talking to people, we can say we have a
strong program in the state, and we want to expand that;
but also we have a strong program nationally. And we can
use that data to kind of make that point.
Next slide, please.
Okay. I talked about the FREE outcome survey that
Sonja was talking about earlier. And it would be too
difficult to put it on the slide. Everything would look so
small. We tried to scan it in.
And so what I did was I just kind of just pulled an
example of some of the FREE questions so you get a basic
idea of what that outcome survey would look like.
And it's really broken into two different sections.
You have yes/no and open-ended-type questions, and then you
have quantitative responses. And both of them are equally
important.
Yes/no, open-ended questions could be, you know,
How is the equipment working for you? That's an open-ended
statement. Do you feel this equipment has increased your
independence when you've used it? Were you mobile or able
to walk before receiving this equipment? And then the
follow-up question would be, Are you more mobile or more
able to walk with the use of this equipment once you
received this equipment? And those are good questions to
ask.
And then the quantitative responses -- and some of
Sonja's cost analysis comes from this -- it's
self-reporting from the recipients. How many falls a week
did you have before receiving this equipment? How many
falls a week did you have after you received this
equipment? And that's where she gets some of that data.
And then we can go through. But each one of them
are kind of questions about emergency room visits, avoiding
hospital stays and things like that. And those are all
really important when you're trying to evaluate the impact
on the community.
And really we gather a lot of this information from
the survey, and we can report these outcomes. And once
again, this kind of helps shows the impact on the entire
community from self-reporting from individuals
participating in the program or individuals receiving
services from the program.
Okay. Next slide.
On this slide, what made me put this one up is
Carolyn Phillips with Pass It On Center would always say --
she kind of always says, "Make sure you tell your story."
Make sure you kind of put a face to what you're doing.
And we've really taken this to heart. So we really
use our data and our marketing and our grant applications
and any presentations we make really to tell our story
better. So really we use data as a strategy to tell our
story better.
And if you look at -- we really don't give
ourselves enough credit. And probably you don't either.
We tend to make very passive statements instead of more
stronger statements about what we do.
So I kind of have an "Acceptable" column and a
"Better" column. And really the acceptable is more passive
statements, and the stronger statements are on the
right-hand side.
So, for example, in our marketing and in our
presentations, we could say and it would be reasonable to
say "In FY 2010, the Virginia Reuse Network served 502
individuals."
We found that it's better or has a stronger impact
if we say "Since 2006, Virginia's formal network of reuse
programs served 6,882 Virginians with disabilities, gifting
8,500 AT devices valued at $3.2 million." And this really
demonstrates the greater impact our programs have had
versus what we just did last year.
Another statement, "The Virginia Reuse Network" --
or the FREE Foundation, either one -- "is a good steward of
its money." And that's certainly a statement that we've
used in the past.
What we've tried to do is make that a little bit
more of a stronger statement. And we will say, "For every
$1 spent on FREE" -- I'm sorry -- "For every $1 spent by
FREE on its mission, $33.40 is returned to the community."
And really this is a nontraditional return on
investment using FREE's cost analysis and its savings to
the community.
So that's some data that we've come up with and
calculated. And we think it sends a stronger message, or
it's easier for somebody to grab that and say, "Wow,
they're doing something really great. Let's figure out how
they've been able to do that."
And then lastly, "The Virginia Reuse Network helps
individuals with disabilities to be more independent." And
that's a great thing, and we certainly support that.
But probably a better way to say that is "Recipient
outcome surveys show 80 to 100 percent decrease in falls,
E.R. visits, and hospitalizations."
And that was that table that Sonja was talking
about at the end regarding the outcome survey, the results
from individuals.
And really we feel that the data really helps us to
tell our story. And we use this as a strategy, like I
said, to modify our services and approach funding sources.
Next slide, please.
Okay. This is a pretty simple graphic. It's a
little table, and it's only got a couple of items in it.
But we think it really shows the value of reuse.
If the average cost of a walker, cane, or similar
device is $100, our reuse ratio -- it's pretty simple to
explain. We could buy one walker or one cane for the
amount that we could gift two of them.
The same thing with wheelchairs. We could buy one
wheelchair, or we could gift four. We could buy one power
chair, or we could gift ten.
And the FREE Foundation came up with this reuse
leverage table. And I thought it was really good because,
inherently there's a cost to reuse, but it shows that reuse
is an efficient and effective model for getting people the
rehab equipment that they need. So that's why we use that
one. And it's pretty simple, and people kind of seem to
get that. Easy to follow.
Next slide, please.
Okay. How does VATS use the data to secure funding
for the network. And like I said, we're talking about the
entire Virginia Reuse Network. And really this is an
overly simplified looking graphic. It's not really meant
to be that impressive.
It's really just a philosophy to help guide us in
terms of our sustainability and what we need to be looking
at in terms of sustainability. And it's called the
"Five-Legged Stool."
And the stool could be a 20-legged stool.
Hopefully it's more than a one- or two-legged stool. And
that's the idea. But we kind of look in several different
areas right now that we're looking for funding for our
network.
And we're really looking at long-term grants;
short-term grants; funding from our state AT program,
putting aside some money for reuse within our ATF dollars;
Virginia Medicaid, and what I'm really talking about is
collaborating with the Department of Medical Assistance
Services or Virginia Medicaid; and then a legislative
approach, approaching the Virginia General Assembly for
funding.
And we've used data in all of these. Some of them
we've been more successful in than others. And I can kind
of go through that with the next slides.
Next slide, please.
The Commonwealth Neurotrauma Trust Fund Board, or
CNI. The Virginia General Assembly established this
Commonwealth Neurotrauma Initiative Trust Fund Board to
support research, education, and treatment relating to
traumatic spinal cord and traumatic brain injury.
And the really interesting thing is that the Code
of Virginia established a funding mechanism for this. And
the Department of Motor Vehicles collects an extra $30
additional reinstatement fee for an operator's license.
So basically you have bad drivers' fees. So if
someone has their driver's license suspended for a host of
reasons, $5 will go towards administrative fees, $10 will
go towards research, and then $10 will go towards
community-based programs.
And we were fortunate enough that the Commonwealth
Neurotrauma Initiative Trust Fund Board put out an RFP.
And this RFP was specifically for community-based programs
to be able to improve services for persons with spinal cord
injury and traumatic brain injury.
And when we were applying for this, at first we
said, "Well, you know, it might fit." And with any grant
you're going to look at it and go, "Hmm, let's see if this
works or this doesn't work for us."
And we looked at it, and we knew we were serving
persons with some complex cases because of the medical
model that we have with the FREE Foundation and some other
individuals.
But we kind of really had to look at our data to
see how we can make a case for this. And really, when we
looked at our data, we really saw that we were serving
mostly persons who were 55 and older. And that might be
very similar to a lot of the other AT reuse programs across
the country.
But we were serving some. It's just we had low
numbers of what we thought of persons with spinal cord
injury and traumatic brain injury, maybe even lower than
what we thought. And it just seemed to, in our brains,
create an opportunity to build the capacity.
So although our data showed that we were serving
low numbers, this was a great opportunity for us to say,
"Wow, you know what? If we do certain things, we can build
capacity to better serve these individuals."
And also we showed that we were serving large
numbers of individuals in our programs. And because we had
a lot of equipment that needed to be processed, we really
needed to automate this process, but not only automate it
but to upgrade the process from a cleaning process to a
true sanitization process.
So we responded to the RFP. And in our proposal we
added Woodrow Wilson Rehabilitation Center because they
have a spinal cord injury unit, and they're part of the
state's VR program. So by adding them, we added in some
extra expertise for spinal cord injury.
So using all of this together, we were able to put
in a proposal. In the end result we ended up getting
$416,000 over three years. And I just estimated here about
$300,000 for operations, which is great, and about $100,000
for five Hub Scrubs or automated sanitizations units that
we've been able to put across the state.
So we're really excited about this. And this is
one way that we used our data to show that, through
additional funding, we could expand these services to
better serve a target group that we really weren't
targeting at the time, but now we are.
And we've made some great connections with the
Spinal Cord Injury Association of Virginia and the
Traumatic Brain Injury Group in Virginia. And so we've
actually made some great connections through them through
obtaining this grant.
Next slide.
The American Recovery and Reinvestment Act funds.
ARRA funds became available last year, and we immediately
began looking at how we could secure some funding through
our VR, vocation rehabilitation, program for reuse. And we
weren't sure how we were going to do this, to be quite
honest with you.
We did look at the number of vocational
rehabilitation participants that we were serving in our
reuse programs. And we found those numbers to be very low.
It might have been 1 or 2 or 3, and maybe they weren't
documented.
The other part of it was we really weren't tracking
VR participants. It wasn't part of our data collection
process.
And we also saw that there was a great opportunity
to help vocationally oriented individuals have access to
back-up durable medical equipment.
And we looked at this as being -- originally as can
the counselor, instead of purchasing AT for an individual,
could they look at this as a comparable benefit?
And we had a lot of issues with that. And so we
decided to kind of drop that part of it and really look at
just what would be considered true back-up...
JOY KNISKERN: Hello, Barclay. We've lost sound.
Hope you can hear us. And maybe you need to depress your
mic again.
BARCLAY SHEPARD: Yeah. I think what happened is
my screen saver went off, and my mic got depressed.
So the point -- and I'm not sure where you lost me,
but basically the point I was making was we were serving
low numbers in the VR program, and we saw an opportunity to
help persons get back-up durable medical equipment.
Everybody needs a primary piece of equipment, but
you can't go to your job or receive your education if you
don't have a back-up piece of DME. And we really felt like
this was a great opportunity to partner with the VR
program, our reuse program, and our reuse partners with the
VR program.
And the other issue that we found just through our
research, that the VR programs or VR field offices across
the state, families would call them and say, "Hey, we had
this piece of equipment. We no longer need it. What do we
need to do with it?"
And these pieces of equipment were just getting
stored in VR offices, and there was no system to get
this -- there was no connection to the reuse program or no
system to get this good equipment back into the hands of
people that could use it. So it was kind of a win-win all
the way around.
It was also another opportunity to connect our VR
offices, our employment service organizations with our
reuse partners.
So the long story short is we did get some monies
through ARRA funding through our VR program, about $20,000
annually. It wasn't a lot of money, but it was good
because it got our foot in the door with the VR program in
terms of receiving some funding through them.
In our preliminary results in the first eight
months, we saw 22 VR participants served by the reuse
programs. The cost savings was about $16,500. And that's
just the value of the back-up equipment that these
individuals were receiving. And we did get increased
donations from VR participants and field offices.
And the other part that I didn't put on here was we
just really connected our reuse partners across the state
with our VR field offices, with our employment service
organizations. So there were a lot of connections that
were made past that.
But anyway, okay. I think that's enough on that
slide.
Okay. Other strategies -- and we're almost done
here. But other strategies that we have that we've used
data to sustain the network.
We've certainly looked at -- with Virginia
Medicaid, we actually invited two members of the Department
of Medical Assistance Services to be a part of our AT
advisory council. And we share with them data constantly:
what we're doing, how we're expanding programs, what we're
seeing in our reuse programs. So we have them a part of
our advisory council, which has been a really good thing.
We developed a durable medical equipment pilot
program, which is really a collaboration among the Virginia
Reuse Network partners, durable medical equipment vendors,
and Virginia Medicaid.
And the purpose of this program -- it's not a
funding thing where Medicaid is -- Virginia Medicaid is
giving us money; however, it's a foot in the door, and it's
us all collaborating together where the durable medical
equipment vendors are educating Medicaid recipients about
the benefits of reuse, who it might benefit, and really how
to increase our inventory of gently used equipment with the
application of the 1-800 stickers on it.
So we've gotten some great collaboration out of
that, and we're still collecting data on that.
The last -- well, there's actually this slide and
then one more. But the last thing I was going to talk
about was the Virginia General Assembly and the governor's
budget fact sheets.
And really what we found is that it's difficult. I
mean it's difficult to use a general assembly approach to
get money. And I know it has been done in the past.
But what our idea is and what we need to do on an
annual basis is educate our legislators and educate the
governor about what we're doing and how we are impacting
the community.
Using some of that cost analysis that Sonja was
talking about and I was talking about, the outcomes data.
We include a lot of that information on our facts sheet.
It's a one-page fact sheet. On the front is basic
facts, and the next slide will show it in a minute. And on
the back we have a proposed budget.
And really the thing that we've gotten out of the
legislative approach is we've learned that you don't need
to just go after all the legislators. You really need to
go after the legislators that are on particular committees,
the money committees.
And there might be six, eight, or ten people on
those money committees, the house appropriations or Senate
finance. And those are really the individuals that you
need as patrons on your legislation that you're trying to
get passed or on your budget amendment that you're trying
to get passed.
And really, if you can get some of those key
individuals on those committees, you're working a lot
smarter and not harder. And we've definitely learned a
lot.
The other thing is you've got to get started on
that stuff early. Like if you want to get on the
governor's budget, we've determined you really need to
start about in June or July having meetings with the
governor because the governor's budget in Virginia is done
by about mid-December.
We started the approach this year I think in
October or November or something, and it was just too late.
But that's just something we learn every single year as we
do this.
But just producing these fact sheets. And I think
constantly going back and not giving up after the first
year. Keep going back and going back. And it might take
three, four, five, six years. But we're going to keep
doing it; we're going to get smarter at it; and eventually
we're going to get in there, especially when the state gets
a little bit better economy.
But I think it's always important just to keep
using that data and keep those individuals informed on what
you're doing and what your reuse programs are and how
efficient and effective our programs are or your programs
are in helping people.
And the last slide -- and this is going to be our
fact sheet -- oh, I see. It says "The fact sheets are
included in the webinar package."
So anyway, the fact sheets are going to be included
in the webinar package, and you can download it and take a
look.
Any questions for me? Let me take my mic off real
quick.
JOY KNISKERN: Thank you, Barclay. We really
appreciate it. That's excellent, excellent information
from both you and Sonja and the first two presentations.
And we are going to move forward and look at return
on investment: what it is, how you can use it. Sara Sack
is sharing this information with us today.
Thank you, Sara.
SARA SACK: Good afternoon. And if we can advance
to the next slide, I'll take you through the road map of my
assignment for this afternoon.
And we will be discussing the terms that you use to
talk about value and how we really come to those terms; the
evolution of value, how we kind of arrived at where we are
now; how to calculate return on investment, simple return
on investment.
And then I'll share examples of using return on
investment in our practice for guiding our program
decisions. And then we will talk about using complex
return of investment to build a business case.
And as Barclay and Sonja were talking about, how to
use that to share with other potential funders and how to
make that more solid in our efforts.
So if we could move to the next slide.
I think we're all pretty comfortable now that -- we
know that it wasn't that long ago that we were talking
about activities, numbers of activities, and how that's
changed. And now we're really looking at the benefit or
the value of what we do.
And people generally talk about the value of
investment in terms of money, people, and time. Monetary,
the money side of it, is the most commonly used term of
value. But we look at return of investment in other
broader areas. And that was just what Sonja and Barclay
were doing.
The Global Reporting Initiative, it's a federal
initiative and an international initiative that was
established in 1997 where they're really looking at value
across three different areas: the environmental value, the
economic value, and the societal value.
And I think what we're doing naturally is talking
about our program in these three key areas. I think it
might be wise for us to be maybe more aware that that's
what we're doing, and maybe we can approach it and
strengthen our efforts in those areas.
So if we move on, what exactly are we talking about
in terms of -- in these financial, these value-laden terms
because we want to be comfortable with the words that we
use when we try and explain what we do to these potential
funders and benefactors.
The terms you'll hear are things like: The cost
benefit of your program. What is a simple return of
investment of your program? What's the business case for
your program?
So what are these terms? Well, they're similar,
but they're slightly different.
When individuals are talking about cost benefit,
most generally it's a list, a general list. Once in a
while you'll see a benefits-to-cost ratio. And I'll talk
about that in just a minute in a little more detail so you
kind of are more comfortable, when someone uses that, what
exactly that they mean and what they don't mean.
And then the term that we're using and we're
talking more and more about is return of investment. And
you have two basic types. You have a simple return on an
investment where you're really just comparing the efficacy
and efficiency of different investments.
And then the more complex version, and they do call
it complex return of investment or a business case. And
that is really where you're stating your definitions and
your assumptions. And as you go and do this, you're
actually modifying your statements and your values
according to the picture that you're painting for a
specific audience.
For example, in Kansas, if I know I'm going in
front of a certain group of bankers, I know they're very
conservative. So I would modify perhaps the value of the
equipment. I might take a more restricted value.
In Kansas we already take a conservative value of
80 percent of MRSP for our durable medical equipment. In
going before some conservative bankers, I may devalue that
to say 50 percent. In doing that, in stating that, I'm
making a more complex return-on-investment analysis and a
more business case approach.
So if we can move to the next slide.
So when you go -- if you Google "return on
investment" or listen to some YouTube videos, you'll hear
different people talking about it.
One person you'll hear a lot is Jack Phillips. And
if you go to the library and look at the books on return of
investment, he's published extensively on this topic.
And one of the key points that Mr. Phillips makes
is that you really need to state everything before you
begin and that the credibility of your organization of
these facts is really critical to your eventual success and
in sharing your information.
And so just real quickly, he talks about balanced
categories of data; he talks about using a conservative set
of standards.
Everything we're going to be doing today and we
have done. We've heard from Sonja and Barclay today is
reflected here.
And then he talks at the last about using a
procedure or procedures that are accepted by other funding
entities and agencies. And again, that's what we're doing,
and that's what we're trying to strengthen as we do so our
arguments are really well received and understood by folks
that maybe have stronger financial backgrounds than some of
us.
So if we move to the next slide.
If you're starting in this arena and figuring out
your return of investment for your program, it's fine to
start with -- I mean the word is simple return of
investment, but that's just fine.
So how do you calculate that? Well, quickly, you
just take your gains or the benefits of your program, and
you subtract your investment, and then you divide by the
cost of operating that program.
Now, I've got a note on this slide that lately I've
been seeing reports where groups are just taking the
benefits and not subtracting what it costs to run the
program and then just dividing by the cost of the program
and saying that that's a cost-benefit ratio.
Well, yes, it is a cost-benefit ratio. But when
you talk to financial professionals, they're really saying
that this is not an appropriate use and that you really
need to always subtract the cost.
So just a caution, if you look at materials to see
how the formula has been calculated, that you really do
want to acknowledge the costs of operating a program and
take those out.
So quickly and easily, if you had an investment of
a hundred dollars in the stock market and you were one of
the lucky ones and now you've earned $20, so when you cash
it in you have $120.
So using this formula, you'd say, "Okay. I now
have $120. I started with a hundred. That was my
investment. So I take that off. And then I divide by the
cost of my investment," by your hundred dollars. So you
have a return of 20 percent.
So the way you would talk about this with a
financial audience is, for each dollar invested, 20 cents
earned in return after costs were recovered. And that I
think is the language we want to get comfortable with
using; that you've acknowledged the cost of operating your
program, and this return is after those costs have been
recovered. I think that's a way that we want to start
using.
If we can have the next slide, please.
So I'll move through this kind of quickly. You'll
have, obviously, this material in the archives. So if this
is new to you and you want to start figuring your return of
investment, you'll have it to go back and refer to. I know
we want to be sure and have time for Trish and her work
today.
But before you start your calculations, it's like
everything. You want to lay out the rules and get started
and not make adjustments to make them fit at the end that
you'd like to have them.
So you list the costs of your program. What are
the operational costs including your staff time? What are
the costs of your volunteers? And include that.
Like Sonja had done in her presentation, I've
listed several resources for you that will take you right
to the facts and figures for your state. And if you go to
this site, it would tell you volunteer time in the United
States for 2009 was calculated at $20.85, but for Kansas it
was $17.79.
And if we move to the next slide, it will just give
you that website, and we'll again show you the map of the
United States.
And then if you were able to see there in the
bottom, you can calculate the costs. And if the web page
actually went further down, it would list state by state
the costs or values for your area.
So I thought that was very helpful. And that is a
well recognized site used by nonprofits and others.
The next slide.
And before you're starting your calculation, of
course, you'll want to think about the benefits. And
that's of course what Sonja and Barclay have been talking
about. And we want to go back and remember that global
initiative and think, "Okay. What case are we making?"
And so you will have a number of different cases.
Are we making an economic case? Are we making a societal
case? Are we making an environmental case?
And we've just listed here a number of return on
investment business cases that you may want to make for
your program depending on the audiences that you're going
to approach.
And this comes from a presentation that Joy and I
did down in Orlando.
And we had just listed: access to needed
equipment; increased community living; preventing
institutionalizations, which we have done in our state;
increased independence; less personal assistance; reduction
of work absence by having back-up and secondary equipment
like Barclay was talking about; prevention of falls and so
forth; reduction in number of emergency room visits;
calculation to determine the waste kept out of landfills --
and I'll show you one of those in just a minute; the value
of increased time producing homework with refurbished
laptops, and that was a return of investment that Joy and
her folks in Georgia have done.
The next slide, please.
So we also want to think of any additional benefits
that you want to acknowledge in your formula. Increase
network partners. Those have been very valuable for us.
We could easily do a return of investment for having that
increased network out there and our ability to respond in
cases of emergencies if the audience that we were going to
approach was, you know, a disaster response team.
So then, when you figure your return of
investment -- and I'll show you some of our charts here in
just a second -- you want to state right on there your
definitions and your focus.
And then finally you want to think about what would
make your happy; what's a good return of investment. I was
at a hearing at the Kansas legislature. And a legislator
had announced that he would be quite happy with a $2 return
on an investment. So I thought, "Well, okay. We can make
him quite happy." So that was nice to know and nice to
hear just kind of what they thought a good metric was.
So your next slide just shows we use figuring just
simple return of investment for our access sites and for
our program.
And this is an old slide. This was our 2008, 2009
data. And I'm just showing you because it was already
creating, and this is just simple return on investment.
And it just lists the costs that we had there. It lists --
at that time we were saying "assets," but the benefits, the
value of the program, the number of pieces of equipment,
the value of that.
So at that point, our return on investments after
costs were recovered was $2.62 in the early days of our
program.
So next slide.
We use program data. We will look at -- we have
five access sites across our state and additional affiliate
sites, so really six sites that bring in and work on the
distribution of equipment. And we look at each of these on
a regular basis and what types of equipment they're
bringing in and what's their calculation for that period of
time, how much did it cost to run their program.
So this just shows you how we look at that -- those
numbers across time by devices, what types of devices.
Next slide, please.
And this slide will just tell you then for the next
quarter. And the decision made on that last quarter was
that they had a lot of lower-cost items. And while they
had a lot, it was a very rural site. That was great. But
our focus is on lightly used, high-cost items.
So even though our ROI would be going down to
adhere to our program standards, we needed to increase the
focus on our more expensive equipment. And it just shows
you that was the decision we made. That was the
instructions. We had changed on our broadcasts and our
radio alerts and changed that information.
And then the next slide.
I'm just going to kind of hurry through some of
these. That just shows that, yes, when we did that for a
period of time, we did drop in our ROI, but it adhered
closer to our program standards. And we thought long term
it was a good decision to make. And that was just where we
showed you that information and how we're displaying that.
The next slide shows you return of investment for
collection drives. We hold durable medical equipment
collection drives across the state. And so I've just
shared some of our graphs on doing that and looking at
the --
I hear a message "Don't rush." And I see -- I'll
slow down for half a second. I see Joy's message on a URL
for the volunteer site. Yes, it's on there. I'll go back
in just a minute and repeat it to you. But it's included
in the link here.
So what we have on this slide -- I was talking
about the durable medical equipment collection drives --
this was a simple return on investment where we just said,
"Okay. What did it really cost us to run these collection
drives?"
And it cost $5,060 including all the personnel
time. And so that was really a cheap, cheap series of
collection drives. And we brought in quite a bit of
equipment. And when you valued the equipment, it gave you
a return of investment for the drive of $28.97. So it
looked like a good return of investment.
Okay. And the next slide.
We then started looking at that and did a more
complex return on investment. And we said, "Well, you
know, some of our assumptions in here is that our program,
as I said, really focuses on lightly used, high-cost
items."
And so we adjusted the figures and said, "Okay. We
really felt like the value of this equipment was too high.
And this was used a little bit heavier, so we adjusted our
value to 40 percent of the manufacturer's suggested retail
price." And that brought that return of investment down
from your $26 figure to $13.99.
And then we went at the next slide a step further,
as we're really analyzing what we were doing, and said that
we wanted to look more carefully at what we got.
And in doing this, this is kind of like what they
will tell you if you're looking at the training or some
other aspect of your program that's a little harder to
value, that you need to make your statements and then say
what it is worth to your program.
Like in the earlier example, developing network
partners. It may be worth a lot to our program. Or it may
cut down on other public awareness costs. Or it may save
us considerable money for not having the costs of another
site. So you state all of those things.
Well, our assumption here was that we wanted to
focus on the lightly used, high-cost; and we wanted to
increase the public's awareness of the program. So that
was a benefit from the program as well as increasing our
durable medical equipment provider network.
So if you move on then to the next slide.
And this shows just the beginning analysis that we
made on that where we acknowledged only a portion of the
equipment that was brought in. So only the higher-cost
items were calculated. Everything else was still accepted
at the collection drive, but the values were only given for
those specific items.
So then your return on investment went from that
original $26 for the very same series of collection drives
to $8.39. But we felt that that was a more honest figure
for what we were trying to do. But that's just an example
of how we use the data.
Then we're moving on. I'm showing you here that we
applied for an award back in 2007. And people around here
are snickering and laughing because it was pretty funny,
but it was the Department of Health and Environment, and it
was a pollution prevention award.
And we actually won one of the five awards or
whatever for the state, and we got a lot of publicity. It
was probably one of the smartest things we did because it
got you at the state capitol in a good light.
But this is the way we did it. It was kind of like
back to what Barclay and Sonja were saying. We approached
a durable medical equipment provider, and he helped us with
estimated weights of the items. And then we calculated how
many items that we had kept out of the landfill. And this
is just the chart on how we did it.
And then the next slide shows you the additional
values and details. So if you want to try an environmental
return on investment, here are some of the things you might
think about.
You could use like the previous information and
then combine it with the facts and figures for your state.
Landfill tipping costs were between $13 and $20 per ton
that year. The costs getting to the landfill were not
included. So that's even more money.
We talked about environmental hazards, but we
didn't put a dollar value on it. We just talked about all
these metals leaching into the ground and so forth that we
had prevented.
We talked with a local manufacturer who reported
that he spent $194,000 to landfill 5,000 tons. So that
gave us a more accurate cost, local cost per tonnage.
And so that we concluded in 2007 that our program,
the Kansas Equipment Reutilization Program, saved at least
$1,373 in potential landfill costs by keeping this tonnage
out of the landfill.
So you might find that interesting or not, but it
might help you if you want to try and make that argument in
your state.
So then I thought, "Okay. You probably want to
know how we're doing now and what our return on investment
looks like and what our considerations are."
So I thought I'd give you and we could just look at
2009, 2010 data. And using that high-cost, lightly used
equipment, we reassigned 698 devices that were valued at
$940,000 -- well, $940,004.
And the value -- I've got the asterisk there. It
doesn't -- and then you see later in the chart that we are
valuing that on 80 percent MSRP.
And there is the cost of our program, $271,487. So
if you're doing the math, you would take the 940,000,
subtract the 271, and then divide by the 271. And that
would give you a $2.46 return on investment after costs are
recovered.
And then the way you would state that is that is a
246 percent return of investment. And so that would be how
your financial professionals would be wanting to hear it.
So then if we move to the next slide.
I thought, "Okay. Let's take that and apply what
we've learned today and make a more complex business case
and see how easily we could do that."
We could cite the nice data we have from the
Virginia study, which you just heard said that 11
assisted-living placements were avoided per 136. I didn't
quite know Sonja's breakdown. I had her earlier figures.
But that was, according to my calculations, roughly 8
percent of the population.
So I think again, "Knowing my audience -- very,
very conservative -- we would cite the Virginia study, say
that in Kansas, if we were keeping 1 percent of Kansans, or
in this case approximately seven people this last year, out
of assisted living, what would that mean?"
And I've given you here one source for
long-term-care placement costs. And again, this site will
take you to the current costs for your state. And it gives
nursing-home costs, assisted-living-center costs, the
various costs. And they reported that the costs in Kansas
were $24,999 a year for assisted-living placement.
So if we go to the next slide, you would take that
almost $25,000 times your seven people. So we had avoided
$174,993 in costs.
So then your formula is just your benefits -- so
you get to add that to your benefit line and then do your
math. And so when you follow that same formula, then your
return on investment, when you calculate that seven people
have not entered an assisted living, which is very, very,
very conservative, that gives you your $3.11 earned in
return after your costs are covered or your ROI goes to
301 percent.
So that's just currently how we're using the data.
We just had a visit here on-site last Thursday from our
governor, and we were able to talk with him about just
briefly this program and its return on investment. And he
was like, "Oh, that sounds like a really strong program."
So that's kind of the report from Kansas.
So at this point I'll turn it over to Trish, and
we'll move on.
JOY KNISKERN: And Trish is a consultant with the
Pass It On Center -- this is Joy speaking -- and has worked
with us, as mentioned before, on developing a business plan
that has actually been used by a couple of states.
And it's a way to take all this data that you've
learned about -- or if you're even starting a new program,
you can do some extrapolations of the population you would
intend to serve.
And, Trish, if you've got a mic, I'm going to turn
it over to you.
TRISH REDMON: Thank you, Joy.
We've heard three really good presentations today
about using data to make a business case. And I'm just
going to go briefly through a few slides because our
outlines for how to write these plans are in the knowledge
base. I've attached them to today's webinar package.
So if you go to the knowledge base, the first thing
you'll see listed under "New" will be an item about the
webinar, and it will have the guide attached.
Just quickly, we talked about developing business
plans. And the first step I think is to go back and review
the indicators of quality of AT reuse to frame
expectations.
Whether you're a new program or an existing
program, that gives you an idea of what you're doing. If
you're new, of course you have to address the issues of
organization, structure and legalities.
But whether you're new or an old program, you first
need to develop a strategic plan before you write a
business plan. And you'll see a brief guide to the
differences and what you need in each one in those outlines
that I've attached. And then you're going to want to
tailor the plan for its proposed use.
We talked about how you would use these plans to
focus your new program or your existing program, how you
use it to support applications for funding, and how you
make the case to nonfinancial supporters and advocates.
The first thing is a strategic plan. And without
going into it at length, this is when you scope what it is
that you do with your program and explain to someone else
what you're doing; or perhaps you explain to yourself what
your focus is for the future.
And it first and foremost articulates your mission
and vision. And I'd like to tell all of you that Sonja's
FREE Foundation does something that's just outstanding. If
you look at her website, every single page has the mission
displayed. It's very creatively done. I recommend you
look at it.
We looked at that last year when we did a webinar
on effective websites. And I was just struck by how great
it is that they found a design to do that.
You really want to analyze your prospects using
SWOT analysis that's frequently used in business your
internal strengths and weaknesses and the external
opportunities and threats that present for you.
And then you want to translate your mission into
SMART goals. And you all know about SMART goals. And if
you're starting something new, whether it's a new program
or a new improvement plan, you want a timeline for
projects.
So once you do the strategic plan -- which is not a
big document. This is a narrowly focused document that you
develop with your board, your advisory council, your key
individuals -- then you're going to add the business plan
components: demographics about populations, statistics.
And you can take a look at the outline, and you're going to
need to do some financial analysis.
An example. We saw some statistics. Sonja used
some of those. This is one from the business plan from DME
Dallas that was one of the people who used our outline.
And it was similar to what Sonja showed you.
In Dallas County, 33.2 percent of the residents
under the age of 65 have no medical coverage. Over
40 percent of the people have incomes below 200 percent of
the federal poverty level. Well, that's a start on
defining the population you're going to serve.
And then they applying something else. And you can
do perspective analysis. They don't know, but applying
something researched in California, they said 5 percent of
the population will use DME each year.
According to this standard, we have 25,000 to
50,000 uninsured or low-income people in Dallas County who
need DME each year and don't get it.
So the essential components of your plan. And I'm
going to go through this quickly and not read all this to
you because you'll find questions in every section of the
plan outline for you. So if you just download that, it
will walk you through all these things.
You'll need to determine what your costs are. And
you've seen that. You'll need to do some accounting
documents.
And then, as Sonja and Barclay and Sara have all
said, you need to tell the story. After you've collected
all this financial data and collected outcomes data or
applied other people's outcomes data to get perspective or
potential savings or payback or return on investment, then
you have a story to tell.
And when you write this plan, you'll do a generic
plan, and then you'll customize this plan for the specific
audiences you have.
To borrow money, if you contemplate doing that, you
focus on how you assure someone of orderly repayment.
If you want support from foundations or
corporations, you need to emphasize the return on
investment we've talked about today; the societal benefits
that we've been able to compute; and the capacity for
growth that Barclay touched on -- who else can we serve;
and your plans for sustaining your program.
So you can use what you learned today about the
impact of outcomes data to make the case for investment in
your program.
And for individual donors, never underestimate how
important it is to explain in simple terms. As we saw, a
manual wheelchair can save this many dollars in hospital
stays, doctors visits, lost income. We've all seen those
ads on TV how few dollars it takes to feed a child for a
month. Those things really touch people in real ways that
they can understand.
The guides for writing the business and strategic
plans are on the Pass It On Center knowledge base,
passitoncenter -- that should be ".org." My mistake. I
left out the ".org."
It's www.passitoncenter.org/content. You'll see
the guides. And I'll add PDFs of our slides there
probably.
We would like to -- before we leave -- and it's
been wonderful for me. And we thank you all for attending.
We want to encourage you to please put your program
on the map. The Pass It On Center website has a locations
database. We would like you to take a look. If you're not
there, please create a profile and enter your information.
If you are there, please update it.
And we'd like to ask you to evaluate our
performance today. And if you would go to this web
address, Survey Monkey, you'll find a survey to do that
evaluation.
And do we have any questions?
JOY KNISKERN: Thank you, Trish. That was
excellent.
And as Trish said, we really hope that you will
take the time to go ahead and fill out that survey and let
us know how we're doing.
And please, please, please do let us know if this
was helpful to you and if there are other topics around
this area that you feel we need to address or anything else
that's reuse.
If there are a few questions, we can take them now
and let you go on about your way the rest of the afternoon.
All right. Thank you all so much for joining us
today. We appreciate your participation. I think this was
a knowledge-packed information session with lots of good
information that we can take back and use.
And I see a lot of people are saying, "Thanks."
We appreciate you. And thanks for joining us
today.
And thanks also to Sonja and Barclay and Sara and
Trish. Appreciate the work that you did putting this
together for us. Thank you.