Business Operations Update

John Wilson, Sr.November 19, 2015

Agenda

Fiscal Year 2014/2015 Program Financial Dashboard

Business Improvement Actions

FY 2015/2016 Year-to-Date Program Financial Dashboard

FY 2015/2016 Program Financial Trends

Summary

Questions

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Fiscal Year 2014/2015 Program Revenue, Expense, Margin

Dashboard

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11/19/2015. UCP Supervisor Meeting. John Wilson Sr.

June YTD Revenue Expense Proftit (loss) 13/142015 YTD YTD YTD YTD YTD Actual YTD Actual

Program Actual Budget Actual BudgetTotal Childhood 1,210,551 1,282,276 1,326,826 1,368,435 (221,658) ($191,228)

Life Fit 419,429 413,189 347,392 363,974 47,763 (8,782)

Total Adult 8,394,822 9,300,096 7,818,723 8,165,168 (95,218) 87,478

Total CommunityServs 15,512,484 15,472,066 13,494,000 13,523,383 689,671 1,324,288

Total Link/AT/REEP/ILT 181,451 161,256 256,380 258,060 (92,461) ($25,052)

Change In Net Assets (Includes Fundraising, C2I, Grants, etc)

Total Agency 26,059,318 27,004,378 26,045,220 26,598,471 14,098

Proftit (loss) 14/15

.054% Profit Margin

Program Financial Improvement Actions

411/19/2015. UCP Supervisor Meeting. John Wilson Sr.

Monthly Director financial/gap assessments Move away from mind set and actions of program "breakeven“, but profit

and sustainability; its about more than just being able to pay the light bills and rent

Group Home Settlement (increased reimbursements) Formal Program "Open" criteria (minimum expenses before revenue

realization) CPARC changes (level changes, CPARC staffing, shared risk) CHC restructure/improved profitability Family Services restructure/operating cost reduction Options Analysis (marketing, increased consumers, cost reduction,

increased attendance/revenue) Revenue cycle management (getting paid for what we do); e.g., AWC

overtime management, no missed program billing, on-time billing, etc. Leveraging technology and reporting tools (e.g., dashboards) to enhance

efficiency, productivity, and to drive reduced costs and quicker decisions. (Soneto, ADP)

We will always seek to put our consumers first. However, we must strive for a balance between the needs of our consumers,

our agency, and our employees.

September 2015 Year-to-Date Program Revenue, Expense, Margin Dashboard

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11/19/2015. UCP Supervisor Meeting. John Wilson Sr.

September 2015 Revenue Expense Profit/Loss 15/16 Profit/Loss 14/15 Year-over-Year P/L Change FY 15/16 Profit MarginYTD YTD YTD YTD YTD Actual YTD Actual YTD

Program Actual Budget Actual Budget With O/H With O/H

Total Childhood 317,963 323,121 331,095 331,389 (36,211) (55,042) $18.8K Improvement -11.4%

Life Fit 108,987 109,156 91,849 92,607 10,637 2,914 $7,723 Improvement 9.8%

Total Adult 2,366,423 2,420,481 2,094,897 2,126,605 109,756 (52,960) $162,716 Improvement 4.6%

Total ComServ 3,897,345 3,631,949 3,429,206 3,195,275 171,383 163,920 $7,463 Improvement 4.4%

Total AT/REEP/ILT 48,311 48,368 60,669 58,690 (16,235) (23,477) $7,242 Improvement -33.6%

Change In Net Assets Agency Profit Margin

Total Agency 6,865,370 6,638,334 6,703,790 6,516,780 161,581 2.35%

September 2015 Year-to-Date Program Financial Trending Dashboard - Childhood

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September 2015 Year-to-Date Program Financial Trending Dashboard – Life Fit

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September 2015 Year-to-Date Program Financial Trending Dashboard - Adult

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September 2015 Year-to-Date Program Financial Trending Dashboard – Community Services

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SummaryProgram Financial Performance:

External forces such as Affordable Care, workers comp, etc. have added thousands of $$ to our agency operating costs

But…We’re in our 8th year of no rate increases

We must improve agency profitability. Why?... Raises to better compensate our staff Better pay to attract and keep staff Increase attractiveness to MCOs

We must strengthen the long-term Sustainability of the Agency

11/19/2015. UCP Supervisor Meeting. John Wilson Sr.

Our profit margin performance is trending in the right direction!

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QUESTIONS?

State of the Agency Update

Jeff CooperNovember 19, 2015

For More Than 20 Years, BH/ID/A Rate Increases for Community Services Have Lagged Far Behind Increases in the State General

Fund and in Inflation

BH/ID/A Rate Increases for Community Services Lag Well Behind the Increases Received by Other Major Medicaid

Providers in PA

Over 20 Years, Attendant Care and Physical Disability Waiver Rate Increases Have Lagged Far Behind Increases in the State General

Fund and in Inflation

Over 20 Years, OLTL Waiver Rate Increases Have Lagged Far Behind Increases in the State General Fund and in Inflation

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98% of funding for UCP is through the “Medicaid Waiver”

UCP Funding 101 Medicaid Waiver

In PA, total Medicaid funding is 52% federal dollars and 48% PA dollars

Example: If PA budgets $1B for a Medicaid program, then funding is split like this…

The percent of federal vs. state varies by state based on average per capita income compared to the national average and is updated annually.

WHY IS THIS IMPORTANT TO YOU? The way UCP is funded influences our decision making and the manner in which we deliver programs and services.

Direct

from the President/CEO Jeffrey W. Cooper

To the Point:UCP Funding 101 Series

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98% of funding for UCP is through the “Medicaid Waiver”, 2% are paid as “state only” funds (base) or private pay

UCP Funding 101 Rate Setting

The state determines the rate at which we are paid, for each of our services. Rates are either:

State-wide, the same for all providers By region, the same for all providers in a region

Exception: group home rates are based on the operating cost for each home.

WHY IS THIS IMPORTANT TO YOU? We are now in our eight consecutive Fiscal Year in which the state has made no meaningful increase in rates for all disability services. In 2011, the state cut rates by 6.5%. In the past eight years, our costs to provide services have steadily increased. Reminder: our rates have not increased. This makes it difficult to increase wages and provide adequate benefits.

UCP IS AN ACTIVE ADVOCATE.

As CEO, I advocate continuously for better rates. I do this individually, with the four state-wide associations, and with our national UCP in Washington D.C.

Direct

from the President/CEO Jeffrey W. Cooper

Active Advocacy on Behalf of UCP

UCP Funding 101 Settlement Agreement

A Settlement Agreement, in lieu of filing a lawsuit against Governor Corbett, was agreed to by the Secretary of the Pennsylvania Department of Human Services and the directors of the four state-wide provider associations.

Jeff Cooper, UCP’s President/CEO signed the agreement as the President of UCP of PA. Jeff and the directors of the other three state-wide associations (The Arc of PA, PAR, RCPA) negotiated with the Secretary for many months to achieve this outcome.

The term of the Settlement Agreement is through June 28, 2017, by which time current regulatory and rate issues are to be resolved.

THE SETTLEMENT AGREEMENT o Provided immediate interim relief on rates for group homes. o Provides higher rates for the next two fiscal years for group homes. o Prohibits the state from cutting rates in the middle of a fiscal year as they did in November

2011 (cut by 6.5%). o UCP received an additional $109,843 in June 2015 o Requires the state to work with stakeholders (providers, consumers, families, and counties)

to rewrite regulations for individuals with intellectual disabilities. o Requires the state to work with stakeholders to analyze possible changes to “payment

policies” (rates).

WHY IS THIS “ACTIVE ADVOCACY” IMPORTANT TO YOU? The regulations for individuals with intellectual disabilities direct how we must provide services and the rate at which we will be reimbursed.

Direct

from the President/CEO Jeffrey W. Cooper

October 28, 2014

June 28, 2017

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UCP Central PA shares UCP of Pennsylvania’s position on the State Budget

UCP Funding 101 Position on State Budget (FY 15-16)

$125.6M of additional state funding* Appropriate sufficient funds to rebuild and strengthen capacity in community services programs for individuals with disabilities by increasing workers’ wages and providers’ rates: 1. $37.8M for wage increases of 50 cents per hour for an estimated 67,540 workers in FY 2015-16 with a commitment to the appropriation of sufficient funds going forward to keep pace with any subsequent minimum wage increases enacted. 2. $87.8M for a 2.6% COLA increase (based on Home Health Market Basket Index (HHMBI) for 2015). Providers have had no systemic COLA on rates for services since 2007 to address inflationary factors over this time period.

FY15-16 State Funds with 2.6% COLA Cost of 2.6% COLA

Early Intervention 125,954,000 129,228,804 3,274,804

ID Community Waiver 211,588,000 1,243,089,288 31,501,288

ID Base Funding 142,754,000 146,465,604 3,711,604

ICF/ID 155,964,000 160,019,064 4,055,064

Autism 18,334,000 18,810,684 476,684

Attendant Care 271,923,000 278,992,998 7,069,998

Persons W/ Disabilities 639,471,000 656,097,246 16,626,246

Aging Waiver (HCBS) 812,083,000 833,197,158 21,114,158

$3,378,071,000 $3,465,900,846 $87,829,846

United Cerebral Palsy of Pennsylvania member agencies, like many disability services providers, have participated in a public/private partnership with the state to serve individuals in the community dating back to 1966 for intellectual disability services and 1986 for services to people with physical disabilities. The provider community and its essential direct service workers are facing extreme economic stress that threatens the stability and viability of the programs that individuals and their families rely on. As private employers increase wages, our already difficult job of attracting and keeping good workers gets even harder, leading to unmanageable turnover rates that undermine quality and consistency. The system must be healthy in order to serve current individuals, and to be able to expand to serve the thousands of additional people in need of these vital community services.

Direct

from the President/CEO Jeffrey W. Cooper

*These requested funds are in addition to funding proposed by the Governor for the referenced appropriations including initiatives for service expansions and other obligations in the Department of Human Services.

KEY POINTS

We want an increase in direct care workers’ wages of at least $.50/hour. While we are also an advocate for an increase in the minimum wage, we prefer the $.50 per hour increase as it benefits our employees who are within or close to the increase in minimum wage amount.

A 2.6 Cost of Living Adjustment (COLA) will begin to help us cover all our wage, benefit, and our steadily increasing costs.

INCREASES IN PEOPLE SERVED

Funding for additional individuals to receive Home and Community Based Services (HCBS) in the following programs:

ID Community Waiver- Funds so that 1,000 more people with intellectual disability can receive services, including individuals on the emergency waiting list, and those graduating from special education; and funds to support 75 individuals leaving state centers.

ID Community Base Program- Funds to partially restore cuts made to this program in previous fiscal years; and funds to support a competitive employment initiative with the Office of Vocational Rehabilitation

Autism Intervention and Services- Funds so that 50 more people with autism can receive services and therapies

Attendant Care- Funds so that 324 more people can receive personal assistance services in their homes Services to Persons with Disabilities- funds so that 1,140 more people can receive personal assistance

services, assistive technology, and other supports in their homes. Home and Community Based Services (Aging Waiver) - Funds so that 1,764 more seniors can receive

services at home or in a day program. Department of Labor and Industry- Funds to increase Vocational Rehabilitation state funds that would

draw down about $18M more in federal funding for transition age youth who want to work.

The initiatives above support Pennsylvania’s continued efforts to serve people in the most appropriate setting while incrementally rebalancing the system from costly institutional placements to the community. Thousands of vulnerable individuals remain on waiting lists for services, which makes the full funding of a healthy and stable HCBS system today and into the future more imperative.

UCP IS AN ACTIVE ADVOCATE.

As CEO, I advocate continuously for wage increases, COLA increase, and increases in the number of people supported.

2.6% COLA

.50/hour increase

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QUESTIONS?

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Introducing… ADP Manager Self-Service!Reducing Paperwork for UCP

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What You Can Now Do in MSS

Change status classification

Place on leave

Return from leave

Terminate

Change compensation

Demote

Promote

Other job change

Transfer

Edit Talent

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What You Can NOT do in MSS

Annual Bonus

One-time payments

PTO Payout

Use PAF for one-time payments

New Hires

Paper PCF ONLY for New Hires

Personal Information Form (new hire fills out)

Scan to HR Helpdesk

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How to Make Changes in MSS

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How to Make Changes in MSS

1. Go to the Manager Tab in ADP

2. Click on My Team

3. Click on Team Summary

4. Select an employee by clicking their name

5. On the top right, choose an action under Select Action

6. Choose the action you want to make

7. Click Start

8. Complete the fields on the online form and submit

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Questions?