june 2010
Post on 07-Jan-2016
22 Views
Preview:
DESCRIPTION
TRANSCRIPT
Copyright 2010 Capital Strategists LLC
June 2010
Success and
Sustainability
Kathryn R. Reed, MHA, CMPEExecutive Director
Catskill Hudson AHEC
Tom RalserPrincipal
Convergent Nonprofit Solutions
Copyright 2010 Capital Strategists LLC
Copyright 2010 Capital Strategists LLC
Why Listen to Me?
Our DNA is in over 450 funding efforts
All types of NPOS in 49 states
Investment Analyst, CFA, CMA
Techniques helped raise
over $850 million
Author of . . .
Copyright 2010 Capital Strategists LLC
Our Philosophy
Copyright 2010 Capital Strategists LLC
“If your organization doesn’t demonstrate its value to potential funders, they’ll fund an organization that does.”
Copyright 2010 Capital Strategists LLC
A financially sustainable program that positions Catskill Hudson AHEC as an investable community asset
Copyright 2010 Capital Strategists LLC
Today’s Discussion
1. HealthMatch, a turnkey solution to rural physician recruitment
2. A template for developing other sustainable programs
Copyright 2010 Capital Strategists LLC
The HealthMatch Program
The ProblemNot unlike yours
Copyright 2010 Capital Strategists LLC
Review of HealthMatch Program
• The Problem– Critical shortage of primary care
physicians across New York State
• Aging out of provider population
• Fewer medical students choosing primary care as a specialty
• Demonstrated difficulty recruiting physicians to rural, underserved areas of the State
Copyright 2010 Capital Strategists LLC
Reality. . .
Hospitals are prevented from assuming the sole responsibility for physician recruitment
Copyright 2010 Capital Strategists LLC
HealthMatch Program
Determined that regulatory mandates constrained hospitals from assuming the sole responsibility for physician recruitment
Established the concept of a collaborative recruitment program involving community key stakeholders
Developed a three-phased approach to community-specific health professional recruitment and retention
Copyright 2010 Capital Strategists LLC
HealthMatch Program
Plan componentsCommitting to the Community
– Educating and engaging communities in the process of needs assessment and establishing incentive programs
Coming to the Community– Community involvement in recruitment of health
professionals – assuring the right “match”
Staying in the Community– Consultative services for practice development and
management
Copyright 2010 Capital Strategists LLC
• Fall 2006: Began Feasibility work
• May 2007: Feasibility interviews
• July 2007: Results and
Recommendations
Timeline of Events
Copyright 2010 Capital Strategists LLC
Background on Feasibility Process
• Prospectus presented a 3 part strategic initiative with a total regional funding goal of $1,485,000
• Interviews conducted with 37 community, political, and business leaders across 11 counties
• Interviews were conducted in an informal, conversational style
Copyright 2010 Capital Strategists LLC
Key Findings of Feasibility Process
• 81% of interviewees had little to no knowledge of the CHAHEC and its services
• 90% of respondents answered that access to quality healthcare and retention of physicians in rural areas were extremely important and needed to be expanded and supported
• 46% of interviewees indicated that they would like to assume a personal leadership role in this effort
Copyright 2010 Capital Strategists LLC
Key Findings of Feasibility Process
• 38% gave an indication of financial support
• 60% of respondents thought that the CHAHEC’s funding goal of $1.4 million could be raised
• 95% of those interviewed felt the program should move forward
Copyright 2010 Capital Strategists LLC
Recommendations of Feasibility Process
A regional funding goal of $1.1 to $1.4 million is realistic
Funding levels can improve with early leadership
A strong effort must be made to inform and educate the public regarding the CHAHEC’s programs and services
Copyright 2010 Capital Strategists LLC
Conclusion of Feasibility Process• People like idea and realize the need for
action
• CHAHEC is “obvious choice” to do this
• Process needs to be top-down and inside-out
• Effort should be launched as soon as possible to capitalize on the momentum generated
Copyright 2010 Capital Strategists LLC
Then the Economy Changed
Shelf life of the feasibility process
Board buy-in
Eleven county area a bit large
Needed to regroup: the New Normal
Copyright 2010 Capital Strategists LLC
Moving HealthMatch Forward
Copyright 2010 Capital Strategists LLC
Grant Beginnings
HEAL NY grant was the catalyst
Copyright 2010 Capital Strategists LLC
HEAL NY Grant Provides• Consultative services of
– Catskill Hudson AHEC – needs assessment, physician recruitment and practice management
– Capital Strategist Group – project funding and sustainability strategies
– Communication Services – branding, messaging and marketing community
• Physician database
• Physician recruitment marketing
HealthMatch
Copyright 2010 Capital Strategists LLC
Grant BeginningsAlthough a great start, it was not the
complete solution
Still needed a sustainable source of funding for the long run
Primarily for incentive packages
Copyright 2010 Capital Strategists LLC
• Educational Loan Grants– 10% a year
• New Practice Establishment– Revolving loans– Grants
• Existing Practice Support
Typical Incentive Programs
Copyright 2010 Capital Strategists LLC
The Plan
Establish pilot program
Generate private sector investment to ensure long-term financial
sustainability
Copyright 2010 Capital Strategists LLC
Pilot program• Why Ellenville?
– Community-based hospital
– Location - Location - Location
– Focus Group of Jan. 2007 catalyst
• Demonstration of viability of this approach to physician recruitment
• Provides foundation for replication across region
HealthMatch
Copyright 2010 Capital Strategists LLC
Typical Costs of Recruitment
Recruitment Incentive Program• Average medical student loans $150,000 to $200,000• New practice establishment costs - $350,000• Practice Support for new provider - $100,000 over
first two years
Why Needed?
Copyright 2010 Capital Strategists LLC
Community Promotion Costs:
Community promotional material & direct mailings
• Average costs - $25,000 Community website development
• Average costs - $15,000 - $20,000
Why Needed?
Copyright 2010 Capital Strategists LLC
The Challenge:
Moving beyond the grant to private sector investment
Copyright 2010 Capital Strategists LLC
We believe that nonprofit
and for-profit
organizations share the
same trait:
The Bottom Line
Copyright 2010 Capital Strategists LLC
Deliver outcomes
that
investors value
Copyright 2010 Capital Strategists LLC
Not unlike for-profit counterparts
Use words like bottom line, investors, and value
Logical conclusion is . . .
Copyright 2010 Capital Strategists LLC
The The Investment-Driven Investment-Driven
ModelModel™
Copyright 2010 Capital Strategists LLC
An alternative view (revolutionary to some, common sense to others) of nonprofit funding that focuses on delivering outcomes that investors value
The Investment-Driven Model™
Copyright 2010 Capital Strategists LLC
The IDM . . .
Maximizes your strengths
Respects your capability
Focuses on
investable outcomes
Copyright 2010 Capital Strategists LLC
Investment-Driven Model™ answers…
Why should I invest in your organization over some
other nonprofit?
What are you going to really accomplish?
How will my company benefit?
Copyright 2010 Capital Strategists LLC
Not a theory . . .
The Investment-Driven Model™
Copyright 2010 Capital Strategists LLC
The results speak for themselves
The Investment-Driven Model™
Copyright 2010 Capital Strategists LLC
Small Projects Location Population Time $ Goal $ Raised
Vermillion SD 10,500 6 mos. $1.5 million $1.64 million Sheridan WY 17,200 8 mos. $1.4 million $1.42 million Jacksonville NC 68,000 6 mos. $ 900,000 $1.17 million Gowanda NY 2,600 6 mos. $ 500,000 $ 549,000 Thomasville NC 26,000 7 mos. $ 750,000 $1.03 million Burlington IA 35,000 8 mos. $1.5 million $1.51 million
Copyright 2010 Capital Strategists LLC
Large Projects
Location Time $ Goal $ Raised
Seattle WA 12 mos. $13.5 million $15 million Orlando FL 10 mos. $17.5 million $18 million NE Indiana 12 mos. $6 million $7.5 million Paducah KY 11 mos. $5 million $5.2 million Dupage IL 12 mos. $5.5 million $5.5 million Toledo OH 12 mos. $8 million $9.2 million Indianapolis IN 11 mos. $15 million $15.2 million
Copyright 2010 Capital Strategists LLC
Genesis of the Investment-Driven Model™
•Began with Funders
•Embraced by fundraisers
•Now an alternative and complimentary way to view nonprofit funding
Copyright 2010 Capital Strategists LLC
Today’s Landscape
•The Investment-Driven Model
•3 Paradigm Shifts
•Lessons from For-Profits
Copyright 2010 Capital Strategists LLC
NonProfit vs.
For ProfitModels
Copyright 2010 Capital Strategists LLC
The grant-driven nonprofit model is a designed to be an unreliable, overly dependent,
financial downward spiral
Copyright 2010 Capital Strategists LLC
How many did I offend with that comment?
Fill Need
Get FundingSee Need
Deplete Funding
Write Grant
NonProfit Model
Copyright 2010 Capital Strategists LLC
The for-profit model is a designed to build capacity,
but only if value is delivered
Fill Need
Get FundingSee Need
Write Plan
For Profit Model
Generate Funding
Copyright 2010 Capital Strategists LLC
The The Investment-Driven Investment-Driven
ModelModel™
Copyright 2010 Capital Strategists LLC
1. How it works
2. Why it works
3. Why it will work for you
Copyright 2010 Capital Strategists LLC
The Investment Driven Model
Focus on the value of outcomes
ROI is pivotal
Answer “What’s in it for me?”
Copyright 2010 Capital Strategists LLC
1. Eliminating the gift mentality
2. Emphasis on results
3. Less reliance on
emotional
approach
3 Formative Shifts
Copyright 2010 Capital Strategists LLC
Shift #1Eliminating
the Gift Mentality
Charity Investment
Gift vs. Investment
Gift Implications Investment Implications Nothing expected in return Something expected in return Small, not of major value Large, major value Social and cultural emphasis Business emphasis Better to give than receive A penny saved is a penny earned A hope that receiver will appreciate it The expectation it will perform
Copyright 2010 Capital Strategists LLC
Taking Up a Collection
versus an
Investment Driven
Organization
Copyright 2010 Capital Strategists LLC
Taking Up a Collection
• Emotional appeal
• No target amount
• Everybody is a prospect
Copyright 2010 Capital Strategists LLC
In other words . . .
Copyright 2010 Capital Strategists LLC
Shift #2Emphasis on Results
Copyright 2010 Capital Strategists LLC
“What’s in it for me?”
Copyright 2010 Capital Strategists LLC
Outputs
Outcomes
Value
Copyright 2010 Capital Strategists LLC
Shift #3Less Reliance
on the Emotional Approach
Emotional Bottom Line
Outputs Outcomes
Anecdotal Examples
Descriptive Statistics
Stakeholder Surveys
Economic Impact
Organizational Impact/OVP
Specific/ Customized ROI
Warm / Fuzzy Appeals Only
Copyright 2010 Capital Strategists LLC
Why It Will Work For YouWhy It Will Work For You
• Demonstrates all of today’s buzz words: transparency, accountability, credibility
• Distinguishes your NPO by delivering measurable outcomes with
value
• Proven funding results
Copyright 2010 Capital Strategists LLC
Applying the IDM to HealthMatch
Copyright 2010 Capital Strategists LLC
Getting to that
“What’s in it for
me?” level
Copyright 2010 Capital Strategists LLC
BenefitsCommunity-based healthcare is greatly
improved and the need to travel outside the community for healthcare needs is greatly reduced.
Higher paying jobs become available - not just for healthcare providers, but for support staff as well.
This improves and supports the local economy.
HealthMatch
Copyright 2010 Capital Strategists LLC
HealthMatch
BenefitsA healthier workforce is cultivated
because more people will have access to healthcare.
A renewed sense of commitment arises because people come together to improve the health of their community
Copyright 2010 Capital Strategists LLC
Realized that the process for moving forward
in economic development is the same as it is for
healthcare
Copyright 2010 Capital Strategists LLC
The HealthMatch / Economic Development
Connection
Copyright 2010 Capital Strategists LLC
Economic Development Roots
Healthcare IS economic development
On decision list for site selection Can be a perk for attracting employees
Improves community “product”
Makes community more marketable
Copyright 2010 Capital Strategists LLC
Combining Efforts
Jump starts more formal economic development efforts
Crosses healthcare off of short list
Process to capitalize is the same
Necessary leadership is the same
Economic Development Components
Community Marketing
Physician Recruitment
Branding Direct marketing Collateral material Web Site
Loan forgiveness Establishment costs Practice support
Recruitment Retention Opportunity fund Site marketing
Complete Economic Development Plan
Classic ED Roles
Copyright 2010 Capital Strategists LLC
In a Nutshell
Pilot program must raise at least $200,000 in funds
In turn, HealthMatch will providePhysician recruitment
• Database, Mailings, Screening, Interviewing, Introductions, etc.
Community marketing
Foundation for broader economic development funding
Copyright 2010 Capital Strategists LLC
• Always under control of the community
• Can be structured many ways
• Key is to be competitive and realistic
Remember, This Program Is:
Copyright 2010 Capital Strategists LLC
Value Proposition Summary
Win/win for community
HealthMatch will do the heavy lifting in fundraising and marketing
Need partners and endorsements to make initial funding successful
Copyright 2010 Capital Strategists LLC
Economic Development Impacts
Hospital is one of largest employers
Healthcare one of key economic drivers
Economic impact is substantial
Copyright 2010 Capital Strategists LLC
Economic Development Impacts
Each job at the hospital creates .53 additional jobs
More than
• Accommodations• Foods services• Education
Copyright 2010 Capital Strategists LLC
Economic Development Impacts
Each dollar paid in earnings by the hospital stimulates another $.42 in area earnings
More than • Professional services• Education• Misc. manufacturing
Copyright 2010 Capital Strategists LLC
Economic Development Impacts
Every million dollars of service delivered by the hospital
creates an additional
$686,000
in business in the area
Copyright 2010 Capital Strategists LLC
Almost FinishedRecognized need
Tested solution in communities
Formulated solution
Copyright 2010 Capital Strategists LLC
Received positive feedback
Secured seed money
Copyright 2010 Capital Strategists LLC
Secure community funding
Integrate HealthMatch into broader economic development plan
Launch !
Copyright 2010 Capital Strategists LLC
Where We Stand Today
Incentive pool funds
Database
What we have learned
Copyright 2010 Capital Strategists LLC
Q&A
Copyright 2010 Capital Strategists LLC
Thank You!TRalser@ConvergentNonprofit.com
top related