INVESTOR REPORT
May 2013
Management Services Solutions (MSS, LLC) was created to help disability service providers across New York State save money, standardize administrative functions and create business models where many business processes done today in the individual organizations can be done in a cooperative effort.
GOALS
Two key financial principals guide Management Services Solutions’ core business strategy:
Cost reductions for goods and services purchased by members and cost reductions
in operational efficiencies provided by consolidating administrative services through MSS, LLC. These direct benefit programs provided to members will be documented to drive our value proposition to all participating and potential members.
An ongoing revenue stream created by contractual relationship with a group
purchasing organization(s) and customized agreements negotiated by MSS, LLC for goods and services offered to participating members.
The initial business plan developed has three key action steps.
1. To contract with a group purchasing organization that would quickly deliver
supply chain savings opportunities and assist with helping with efficiencies in supply chain purchasing.
2. To look at pharmacy services business practices with the possibility of creating a business through the MSO that would reduce expenses as well as create a revenue stream to support MSS, LLC.
3. To look at back office processes that could be centralized to help reduce overhead
where those administrative savings can be redirected to improving direct care for the people we serve.
TASKS/ACCOMPLISHMENTS
Met with the Taiga Group for a presentation on their compliance services.
Met with Bald Eagle Pharmacy for a presentation on their pharmacy services.
Met with Paylocity to review their payroll services.
Met with with Allsector for a presentation on their software services.
Met with Relph Benefits to review their programs.
Met with Misner Associates to review employee insurance programs.
Met with Servomation to review their vending services for use in our facilities.
Participated in May MSO Board meeting.
BUSINESS GOAL ACCOMPLISHMENTS Management Services Solutions Website
A website has been created – Please take a moment to go to the
website and review the various areas and provide comments and suggestions. This website creates a single point of communication and information for Affiliate staff to access.
The goal is to use this site for accessing goods and services provided by the MSO.
GPO Services
Savings Summary Section
Hiscock and Barclay – HIPAA training and policy updates; we had 18 participants in the
effort. The cost per facility started at $3,000; when the opportunity closed on May 31st, we had a final cost per participant of $1,650. The following facilities participated.
Savings Jawonio - $1,350 45% Metro services – $1,350 45% Rochester CP - $1,350 45% Inspire - $1,350 45% AHRC - $1,350 45%
Center for Family Services - $1,350 45%
Oneida ARC - $1,350 45%
Westchester ARC - $1,350 45%
Able 2 - $1,350 45%
Guild for Exceptional Children - $1,350 45%
HCA - $1,350 45%
Jefferson Rehab Center - $1,350 45%
Ulster County CP - $1,350 45%
Upstate CP - $1,350 45%
CP of Westchester - $1,350 45%
PRALID - $1,350 45%
Abilities First - $1,350 45%
Please watch for notice of the upcoming training on the new regulations.
Thank you to all participants, this is an excellent example of delivering a great product at a great price with great partners.
Yost Engineering/CIS – With our business associate agreement with CIS, current Yost
users have the opportunity to save significant money with the Yost Engineering
agreement. In reviewing the offer, current users will be able to save around 50% of their current annual fees. Below is an example of one provider that has committed to the new agreement.
Savings
Jawonio - $860 55%
If you need to find out what your facility could save, please reach out to myself or Laura Segave, Executive Director at CIS, at 585-210-4032.
GPO Training
On May 9th UISS/GNYHA held a member meeting at the Turning Stone Casino and Event
Center in Verona, NY. This was attended by several of our provider agencies. Thank you to Jim Crisci (CP of Westchester), David Goss and Doug Reiue (Upstate CP), Janet Hansen (Aspire) and Adam Hungerford (Able2) for attending.
We will be holding more regional training classes on how to maximize the value of our GPO relationship. If you are hard pressed to send staff out, please let me know and I can schedule one-on-one time with your staff to review how to use out GPO services.
New Agreements
Paylocity – Paylocity for payroll and HR service needs. Paylocity offers a web-based,
management. There is a potential for an estimated 25% savings when compared to your current business model. Paylocity is also keenly aware of the affects of the Affordable Care Act and has a process available for you in your evaluation of the needs for compliance to the new law.
If you are interested in speaking with our representative, his contact information is below. Joe Lisi District Manager 315.310.0112 http://www.youtube.com/watch?v=oyRuK2iUDBM [email protected] www.paylocity.com
Center Information Services – We have entered into a Business Associates agreement
with CIS, Rochester, NY. This agreement will allow MSS, LLC and CIS to work collaboratively on behalf of our participating customers to either use existing CIS
agreements with suppliers to save money or develop new agreements for our customers.
Surveys
This month we pushed out two requests for information:
o Hess energy solutions, asking for identifying by product type (electric, natural
gas and oil), by facility and by square footage of the building. Our goal is to collect information so we can benchmark best practices and help those who have
buildings outside of the norm develop ways to lower the cost of ownership with energy savings solutions. I plan to have this completed by the end of June.
o Pharmacy Services again taking center court, we asked for specific pharmacy
prescription utilization data so that we can fine tune the pro-forma on the business model of us creating our own business. The results of this will be
presented at the July MSS, LLC board meeting. Stay tuned for updates on both of these projects.
Thank you to all of your support in providing input into these requests.
Human Resources
o Health Benefits – With the April letter I mentioned that we had committed to
moving forward with Solid Benefit Guidance. However, after further discussion it was agreed that I would go through another review of opportunities and make a recommendation to the Board at the June MSS, LLC Board meeting. I will report on the final recommendation on this project in the June newsletter.
o Paylocity – Paylocity has provided us with a presentation on their view of the Affordable Care act. This presentation is posted to the MSS. LLC web site under the Executive Briefings section banner. We will be arranging for a webinar on this presentation in June.
Information Technology
o CIS – We are moving forward with having Laura Segave interview the IT folks of
each agency on specific needs. This plan will help us build the strategy and tactics for IT solutions for the group. Laura is also helping to migrate current users for sanction testing with Yost engineering services to a common agreement. Please see the savings section for specifics on the value to the users with this common
agreement.
Pharmacy Services
o Tempest Med – At the May MSS, LLC Board meeting, Northeast Pharmacy
Services and Tempest Med presented a review of their services and how they can help us create our own business model for pharmacy services. After much discussion it was agreed that we would provide Northeast with more specifics on utilization so that they can complete final pro-forma on business model options for us to consider. They will present these findings at the July MSS, LLC Board meeting. I am very excited about this opportunity, it is evident we have the potential to provide users with cost savings as well as revenue to the MSO to help support the many opportunities we have in front of us.
Administrative Services – I am working with staff to deploy existing staff consulting services as an offering for use by other Affiliates.
o Consulting for Affiliates pending further scoping:
Workers Compensation, staff evaluation
Grant Writing
Estate Planning – pending more discussions with Affiliates on this
need/opportunity
Business Models for us to look at as revenue generating:
o Centralized Payroll
o Centralized Purchasing
o Payroll
o Grant Writing
Miscellaneous – I met with Premier staff to review the Total Spend Control System and Analytics software. This is a viable option for the MSO as we begin to offer software to manage supply chain spend. This software is not limited to suppliers in the GPO portfolio; local suppliers can be uploaded so as to manage their spending and work on standardization of product. There will be more to follow on this opportunity.
Marketing – Groups that I am working with or that have expressed an interest in becoming an investor:
o Community Based Services, North Salem, NY – Executive Director and Business
Manager interested in the MSO, we met and have shared information on what I am working on and what is important to them. They will present this to the Board at their June Board meeting.
o The Center for Spectrum Services, Kingston, NY – Executive Director is
interested, although they need to be cautious in the approach as they are working with other like providers in the area on a similar approach. They will reach out at the end of the summer with a decision.
o Association of Children with Downs Syndrome (ACDS), Plainview, NY –
Executive Director and Vice President of compliance are interested in the MSO. We met and have shared information on what I am working on and what is important to them. They will present this to the Board at their June Board meeting.
o Abilities First, Poughkeepsie, NY – Associate Director and CFO and I met again,
they want to buy one share, they have the documents required to sign for the share.
Needs
o Requests – If there is anything that you believe is important that I need to begin
work on, please let me know and I can add it to the list. If you have any questions or comments, please let me know. Best Regards,
Fredrick C. Sears Executive Director
