Assessing Your Market Session of...2010/03/18 · • Tetanus, Diphtheria, and Pertussis • Not being vaccinated results in approximately 5,320 cases per 100,000 children • $17,000

9/25/2018

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2018 Capital Link 1www.caplink.org

Assessing Your MarketSession 1 of 2

Jonathan Chapman

Director CHC Advisory Services

October 3, 2018


Capital Link

• Launched in 1995, nonprofit, HRSA national cooperative partner

• Offices in CA, CO, FL, LA, MA, MO, and WV

• Over $1.1 billion in financing for over 230 capital projects

‐ Direct assistance to health centers and complementary nonprofit organizations in planning for and financing operational growth and capital needs

‐ Industry vision and leadership in the development of strategies for organizational, facilities, operational and financial improvements

‐ Metrics and analytical services for measuring health center impact, evaluating financial and operating trends and promoting performance improvement

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Assessing “at the Edges”


Assessing Risks and Opportunities

You can’t manage what you don’t know and…

You can’t know what you don’t measure

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Specific and Targeted Outreach


Things to Consider

• HRSA’s Compliance Manual, Chapter 3: Needs Assessment

• What is your perceivedMarket?

• Market can = geography, specific population, service type, etc.

• The findings will likely inform & expand any ‘gut instinct’

• There is A LOT of data out there

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Assessing Your Market


Geographical Service Area Identification

• Examine and map patient origins

• Approximately 75% (or other natural break) is considered Primary

• Next 10‐15% is Secondary

• Similar to HRSA UDS Service Area Map and UDSMAPPER

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Zip Code 37129 ‐ UDSMAPPER


Market Assessment ‐ UDSMAPPER

20 Minutes Drive Time from Health Center Admin Location

WITH TRAFFIC CONSIDERATION

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Market Assessment ‐ UDSMAPPER


Demographics and Economic Indicators

• Compare state, county, metropolitan areas, cities, zip codes, etc.‐ Populations‐ Race‐ Income Ratios‐ Education‐ Language‐ Business Establishments and Employees by Industry‐ Disabilities‐ Many more, usually according to health center specifics

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Data Table – UDSMAPPER Data


Data.gov

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US Census FactFinder

• Geographies by census block, tract, zip code, county, state, etc.


US Census FactFinder

• Veterans, SNAP, family structure, poverty, language, housing, transportation, businesses (county and zip code business patterns), disability, origins, etc.

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US Census FactFinder ‐ Veterans


Medical Needs of Service Area

• Compare state, county, metropolitan areas, cities, zip codes, etc.‐ General health indicators

• Other health providers and facilities

• Health Professional Shortage Areas (HPSA) and MUA/Ps

• Health Disparities

• Selected Workforce Considerations

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US Census FactFinder – Health Care Establishments


Data Table – UDSMAPPER Data

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HRSA Data (formerly Data Warehouse)


County Health Rankings

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County Health Rankings


Policy Map

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Policy Map ‐ Health


Aunt Bertha

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Aunt Bertha


Aunt Bertha

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Market Assessment – Selected National Resources

• UDSMAPPER and HealthLandscape: www.UDSMAPPER.org

• US Census FactFinder: https://factfinder.census.gov

• US Census QuickFacts: https://www.census.gov/quickfacts

• County Health Rankings: http://www.countyhealthrankings.org/

• HRSA Data: https://data.hrsa.gov/ (formerly Data Warehouse)

• Aunt Bertha: https://www.auntbertha.com/

• CDC/Nat’l Center for Health Statistics (FastStats): https://www.cdc.gov/nchs/index.htm

• Policy Map: https://www.policymap.com/

• US Datasets: https://catalog.data.gov/dataset

• US SBA’s Market Analysis: https://www.sba.gov/tools/sba‐learning‐center/training/market‐research


Data

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Identifying Service Area Opportunities

• Evaluate service area market share‐ Total population and low income population‐ Payor mix

• Population Projections‐ Anticipate changing demographics and their effect

• Estimating potential patients, visits, providers, capital needs

• https://www.tn.gov/content/dam/tn/tacir/documents/Population2010.pdf

• http://cber.bus.utk.edu/popproj.htm


Back of the Envelope

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Service Area – UDSMAPPER Data


Thinking of Expanding?

An organization wants to consider increasing its low income population market share by 10%.

How many more patients,

visits, and providers

would that mean?

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Expansion Considerations

• Market Share – Current and Projected• Number of Patients from specific population divided by that total population• Service Area FQHC Patients = 9,226• Service Area General Population = 230,000; Low Income Population = 70,000• 4% market share General Population; 13% market share Low Income Population

• Estimating Encounters/Visits• Historic/Realistic visits per patient times expected patients• FQHC Visits = 32,000• 32,000 / 9,226 = 3.5 visits per patient

• Projecting Workforce Needs• Historic/Realistic Provider Productivity divided by expected visits/patients• FQHC Provider FTE = 25 • FQHC Visits = 32,000• 32,000 / 25 = 1,280 visits per FTE



• An organization wants to increase its low income population market share by 10%; how many more patients, visits, providers?

• 13% x 1.10 = 14.3%• 14.3% x 70,000 = 10,010 patients

(increase of 784 patients)

• 784 * 3.5 visits per patient = 2,744 additional visits

• 2,744 / 1,280 visits per Provider FTE = 2.1 additional Provider FTEs

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• Estimated Square Footage/Funding Needed to Treat New Patients – HYPOTHETICAL

• Using estimated square feet per provider as basis…1,500

• 2.1 FTE x 1,500 sq ft per = 3,210 total sq ft

• Estimated construction cost per square foot as basis…$145*

• 3,210 sq ft * $145/sq ft = $465,000 estimated cost

*http://www.buildingjournal.com/construction‐estimating.html



Hard Costs: 70%Equipment: 15%Soft Costs: 15%

Total Project Cost 100%

+ Land/Building Acquisition

Typical Breakdown of Project Costs for Health Centers:

$465,000$100,000$100,000

$665,000

??

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Service Expansion ‐ Immunization Rates and Costs

• Tetanus, Diphtheria, and Pertussis

• Not being vaccinated results in approximately 5,320 cases per 100,000 children

• $17,000 in hospitalization costs per case

• Dtap Vaccine = $80/child

• 74,000 children under 5 years of age in service area

• Current Immunization Rate = 70% 30% = $20 million in costs

• Spend $1.6 million to increase the Immunization Rate to 80%

• New Immunization Rate = 77% 23% = $15 million in costs

Reduction of Hospitalization Costs of $5 Million


Information

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Contact

Visit us Online: www.caplink.org

• Learn more about our products and services

• Download our free publications and resources

• Register for upcoming webinars

• Sign up for our e‐newsletter, Capital Ink

• Subscribe to our blog at capitallinksblog.blogspot.com

Jonathan ChapmanDirector of CHC Advisory Services970‐833‐[email protected]

Documents

Assessing Your Market Session of...2010/03/18 · • Tetanus, Diphtheria, and Pertussis • Not being vaccinated results in approximately 5,320 cases per 100,000 children • $17,000