PHDSC Business Plan

Initial Content of PHDSC Business Plan for PHDSC Board Of Directors Discussion

11/8/12 – Hyattsville, Maryland

About This Business Plan

• Goals of this Business Plan– Document strategic and tactical actions to execute PHDSC Strategic

Plan 2012-2014 (see http://phdsc.org/about/pdfs/PHDSC_Strategic_Plan_2012-2014_FINAL.pdf );

– Establish financial plan needed to fund strategic plan;– Identify growth strategy and relevant tactics;– Establish staff acquisition and training plan.

• How PHDSC Plans To Use this Business Plan– Monthly check for major deviations against plan and adjust actions;– Semi-annual refinement to align with actual progress;– Annual revision of plan.

Public Health Data Standards Consortium (PHDSC)

• National non profit organization with members from:‐– Federal, state and local health agencies– Professional associations– Academia– Public and private sector organizations– International members– Individuals.

History Leading to PHDSC

Public Health Background Related to PHDSC Business

PHDSC Mission Statement

• To build a coordinated, census-based Public Health Voice for Health IT (HIT) standards and bring this Voice to national and international HIT standards efforts to achieve interoperability of HIT in healthcare/public health/population health. To fulfill its mission PHDSC:– Identifies priorities for new standards for population health data;– Promotes integration of health related data systems ‐ to meet the

needs of public and private organizations, agencies and individuals;– Participates in national and international efforts to standardize

health related information;‐– Represents public health interests in standards development and

harmonization organizations, data content committees;– Educates the public health community about HIT standards and the

HIT community about public health; – Advocates for, and participates in, the transformation of healthcare

to a health based model ‐ in collaboration with other stakeholders.

PHDSC Strategic Initiatives

Eliminate fragmentation of data systems that limits public health ability to respond to emergencies, effectively coordinate healthcare services, and deliver community-based disease prevention interventions, by:1. Unifying Public Health in support of health based model/learning health ‐

system (HBM/LS): – Align data gathering across public health programs and levels of government

using standards to exchange health information– Enable Public Health to help lead the transformation in healthcare.

2. Unifying Public Health Information Systems: – Transform and align public health IT to support standards-based information

exchanges across public health entities and all other healthcare stakeholders. – Build Coordinated Voice from Public Health on HIT Standards and bring this

Voice to the national and international HIT standardization efforts..3. Aligning Public Health with Other Sectors in Healthcare:

– Monitor and participate in national initiatives that strive to align/integrate public health, healthcare, and other sectors to the extent possible, and

– Influence direction of these activities according to the PHDSC vision.

PHDSC Business Philosophy

• Overcome technical and policy obstacles to the secure and appropriate data sharing needed to enhance public and population healthcare quality, effectiveness, and safety (U.S. and worldwide). The PHDSC approach is to: – Provide public health with data needed for timely, coordinated response to

public health threats and opportunities by establishing data-sharing standards; – Transform redundant, inconsistent, manually intensive requirements public

health imposes on healthcare into requirements and standards that enable electronic data to be shared automatically;

– Eliminate the underreported, non-representative, un-timely, inconsistent data and the inability to integrate data across systems that plagues public health;

– Make Public Health a key contributor in transforming healthcare from a disease-based to a health-based model/learning health system.

• Gain resources to accomplish above through:– Volunteer efforts coordinated by professional staff– Professional staff funded by government and private sponsorship and program

funding as well as membership dues;– Cooperation with national and international health data-standards efforts.

PHDSC Value Proposition (1 of 2)

• Engages public health stakeholders to establish a unified voice with consensus priorities and requirements for data-sharing standards needed to enhance public and population health;

• Represents unified public health voice in: – National and international efforts to standardize secure

health related information and data content;‐– HIT Standards organizations and other standards entities;– Efforts to promote seamless alignment of systems

functionality and interoperability in HIT and healthcare/public health/population health.

PHDSC Value Proposition (2 of 2)

• Educates public health community about health information technology standards and opportunities they represent;

• Advocates for, and participates in, transformation of healthcare to a health based model in collaboration with other stakeholders, by:‐– Identifying HIT standards that support HBM/LS;– Promoting validation and implementation of those standards in HIT;– Promoting broad acceptance of the standards and effective use in HIT.

• Assures public health a strong, coordinated, and educated voice in HIT standards efforts that – Establishes and gains broad acceptance for required HIT standards; – Validates the HIT standards through broad interoperability testing;– Supports wide deployment and implementation of the HIT standards.

PHDSC Legal form of ownership

• x

PHDSC Business - PHDSC Products and Services

• Government sponsorship and programs;• Membership;• Other possible products and services– Work products – free with copyright?– Suggest treating following as types of program

• Educational services (e.g., seminars at conferences, webinars);• Testing services.

Question: should we project revenue from “other possible products and services” or just project revenue from government programs and membership?

PHDSC Business Plan -Assumptions used

• Financial Goals – Grow staff to support revenue growth and replace some

consulting services – Establish overhead structure with approved indirect rates

• Target 30%• Staff Included in indirect costs

• Managed Growth in revenue projection leading to performance excellence, with larger stretch goals

fy 2012 fy 2013 fy 2014 fy 2015program revenue in millions 1,046,345$ 1,203,297$ 1,383,791$ 1,591,360$ target program revenue growth 15% 15% 15%membership dues 95,000$ 104,500$ 114,950$ 126,445$ target membership growth 10% 10% 10%total revenue 1,141,345$ 1,307,797$ 1,498,741$ 1,717,805$

PHDSC Growth Plan

PHDSC Business – Marketing Plan

• Government sponsorship and programs– Identify and prioritize target customers – Establish customized value proposition and presentation for priority target

customers– Visit priority target customers– Plan to treat following as types of Government Programs

• Educational services (e.g., seminars at conferences, webinars)• Testing services

• Grow Membership– Identify and prioritize target members– Establish value proposition and message for priority target members– Use existing PHDSC membership leaders as signatories for invitational

letter to priority target members– Hold recruiting event for priority target members (keynote speaker, …)

PHDSC Membership

PHDSC Business – Customers

• Existing Customers - CDC Divisions, Centers, and Offices– Division of Informatics Practice, Policy & Coordination – Public Health Informatics & Technology Program Office– Office of Surveillance, Epidemiology, and Laboratory Services

(OSELS)– National Center for Health Statistics– National Center for Birth Defects and Developmental Disabilities– National Institute for Occupational Safety and Health

• Additional Target Customers and Acquisition Strategy(s)– More CDC Departments– Various DHHS agencies and other Departments/Agencies

• Are there any other key customers? • How should we prioritize these customers for pursuit?

PHDSC BusinessPartnerships and Competitive Landscape

• inner circle - key partners• middle circle - coopetition

(competitors/partners)• outer circle - key competitors

APHL

CSTE

Booz-Allen

ANSIX???

HIMSS

• What are key organizations in our competitive landscape?

• What strategy(s) would you use to address them?

PHDSC Business – Competitive Landscape Strategies

• Inner Circle– General strategy and actions for inner circle– strategy and actions for specific members of inner circle

• Middle Circle (sometimes competitors, sometimes partners)– General strategy and actions for middle circle– strategy and actions for priority members of middle circle

• Outer Circle– General strategy and actions for outer circle– strategy and actions for priority members of outer circle

PHDSC Organizational Structure

• PHDSC Membership• PHDSC Board Role and Responsibilities• PHDSC Executive Committee• PHDSC Committees

PHDSC Business - Management and Staff Structure

• Overview• PHDSC Management Structure• PHDSC Operations

FISCAL YEAR 2014-2016

PHDSC FINANCIAL PROJECTIONS

Trend for Sources of PHDSC Revenue

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013*

$-

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

MembershipContracts

Membership

Membership/Contracts

Primarily Contracts

• Membership includes dues and annual meeting

• Contracts also includes grants and services

Projecting PHDSC FY2014-2016Revenue

1 2 3 4 5 $-

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

$1,600,000

$1,800,000

$2,000,000

MembershipContracts

2012 2013 2014 2015 2016

Indirect Rates going from 10.6% in FY2013 to 30% in FY2014-2016

Project 15% revenue growth

in FY2014-2016To Consolidate Growth

and Establish Staff

PHDSC Financial Plan – Basis of Indirect Expenses

• Indirect Expenses in FÝ2013– Rent (BusinessSuites)– IT Support, Server (Legal Workspaces), Web-site– Internet, Telephone (3 lines), web-based conferencing resource (3 lines)– Professional Insurances – Accounting Services – Financial Audit Services– Legal Counseling – PHDSC Administrative Costs– Payroll

• Adding to Indirect Expenses in FY2014– Staff and Consultants – Business development costs– Travel

PHDSC Projected 3-year Program Expense

Note: substantial growth in staff and indirects plus reduction in consulting

fy2013 fy2014 fy2015 fy2016Staff 235,073$ 411,482$ 515,731$ 588,193$ consulting services 693,844$ 506,000$ 541,000$ 625,888$ travel 56,722$ 51,120$ 56,428$ 66,000$ registration 9,200$ 9,250$ 10,000$ 11,000$ miscellaneous 6,065$ 1,415$ 3,000$ 4,000$ subtotal program costs 1,000,904$ 979,267$ 1,126,158$ 1,295,081$ program indirect costs 106,096$ 293,783$ 337,850$ 388,527$ total program costs 1,107,000$ 1,273,050$ 1,464,008$ 1,683,609$ program budget 1,107,000$ 1,273,050$ 1,464,008$ 1,683,609$

Program Expense and Revenue

PHDSC Projected 3-year Membership Expense and Income

fy2014 fy2015 fy2016Staff 75,820$ 85,053$ 94,385$ Travel 2,565$ 2,000$ 2,000$ Miscellaneous 2,000$ 1,371$ 881$ Subtotal Membership 80,385$ 88,423$ 97,265$ Indirect Costs 24,116$ 26,527$ 29,180$ Total Membership Costs per Year 104,500$ 114,950$ 126,445$ Membership Budget 104,500$ 114,950$ 126,445$

PHDSC Membership Expenses

PHDSC Financial 3-Year Projection – Indirect Charges and Expenses

Operating Expenses $ 60,300 $ 62,411 $ 64,595 $ 66,856 Business development Consulting Services $ - $ 10,000 $ 20,000 $ 65,000 Staff $ - $ 339,595 $ 386,702 $ 407,046 Travel $ - $ 1,260 $ 2,390 $ 4,115 Total indirect cost per year $ 60,300 $ 413,268 $ 473,691 $ 543,020 PHDSC Annual Operational Budget $569,024 0 0 0

PHDSC Annual Budget 0 $1,377,550 $1,578,958 $1,810,054Estimated Indirect Costs Percentage of Operational Budget 10.60% 30.00% 30.00% 30.00%Goal Indirect Costs Percentage of Operational Budget 0 30.00% 30.00% 30.00%

note - assumed escalation rate 3.50%

PHDSC Indirect Charges and Rates

Operating Expenses include 1) Rent (BusinessSuites); 2) IT Support, Server (Legal Workspaces), Web-site; 3) Internet, Telephone (3 lines), Webex (3 lines); 4) Professional Insurances (CNA); 5) Accounting Services; 6) Financial Audit Services; 7) Legal Counseling (Lochner Law Firm); 8) PHDSC Administrative Costs; 9) Payroll (It’sPayDay)

PHDSC Staffing Overview in Full-Time Equivalents (FTE) Per Fiscal Year

fy2013 fy2014 fy2015note - marketing + membership 100% 100% 100%

Total

fy2013 fy2014 fy2015Executive Director 100% 100% 100%Project Director 100% 100% 100%Business Operations Officer 45% 45% 45%Project manager 90% 150% 200%Marketing/Communications 50% 50% 50%Contracts manager 50% 100% 100%Membership services 50% 50% 50%Database/web services 35% 40% 50%Accounting support 80% 100% 100%Administrative support 100% 100% 100%

Total

PHDSC Staffing Total

PHDSC Staffing Details by Cost Type in FTEs Per Fiscal Year

fy2013 fy2014 fy2015 fy2013 fy2014 fy2015 fy2013 fy2014 fy2015Executive Director 40% 45% 48% 10.0% 13.0% 15.0% 50.0% 42.0% 37.0%Project Director 25% 30% 30% 10.0% 10.0% 12.0% 65.0% 60.0% 58.0%Business Operations Officer 20% 20% 20% 5.0% 5.0% 5.0% 20.0% 20.0% 20.0%Project manager 0% 0% 0% 0.0% 0.0% 0.0% 90.0% 150.0% 200.0%Marketing/Communications 35% 35% 35% 10.0% 10.0% 10.0% 5.0% 5.0% 5.0%Contracts manager 40% 55% 55% 0.0% 0.0% 0.0% 10.0% 45.0% 45.0%Membership services 40% 40% 40% 10.0% 10.0% 10.0% 0.0% 0.0% 0.0%Database/web services 15% 20% 20% 0.0% 0.0% 0.0% 20.0% 20.0% 30.0%Accounting support 15% 15% 15% 0.0% 0.0% 0.0% 65.0% 85.0% 85.0%Administrative support 60% 60% 60% 20.0% 20.0% 20.0% 20.0% 20.0% 20.0%

PHDSC Staffing By Cost Typeindirects membership Program

Alternative PHDSC Business Models

• Much faster program growth• Much lower membership cost with levels of

membership (e.g., sponsorship, …)• Other suggestions?