Feasibility Study for the Privatization of Alaska Psychiatric Institute Round Table August 25, 2016 11:00am - 1:00pm AK Frontier Building, Room 880/890

Agenda PCG Overview PCG Privatization Studies Project Goals & Objectives PCG’s Approach Project Steps Stakeholders PCG Contact Information Questions www.pcghealth.com | Health Presentation

PCG Overview PCG provides management consulting and technology to help public sector clients achieve their performance goals and better serve population in need. Founded in 1986, PCG is headquartered in Boston, MA and employs more than 1,500 professionals in 46 offices. www.pcghealth.com | Health Presentation

PCG Privatization Studies Project PCG Recommendation Outcome/State Action MA Department of Mental Health – Emergency Service Program: Privatization Analysis (2015) Privatize Pending procurement for privatization contractor TX Health and Human Services Commission: Behavioral Health System Analysis (2012) Build upon existing privatization efforts Two unsuccessful attempts to privatize two state hospitals UT State Legislature – Executive Appropriations Committee: Feasibility Study on the Privatization of Portions of the Utah State Hospital and the Utah State Developmental Center (2010) Do not privatize Both facilities remain state run today www.pcghealth.com | Health Presentation

Project Goals & Objectives In compliance with SB 74, and in partnership with DBH and AMHTA, PCG will: Identify and analyze potential options for privatization of the Alaska Psychiatric Institute (API). Identify which potential option(s) would provide the best value to the State of Alaska. Ensure that the determination of the best value should consider both cost and benefits to the state, including financial costs and savings, maintenance or improvement of services and quality of care provided by the facility, and community stakeholder impact. www.pcghealth.com | Health Presentation

PCG’s Approach Finance Team Service Delivery Team Policy Team Responsible for all tasks involving hospital financial reporting and data analysis. Responsible for identifying and estimating all costs associated with service delivery and facility operations under the various privatization options. Service Delivery Team Responsible for all research and analysis pertaining to service delivery, patient care and patient outcomes. Responsible for describing how quality of care would be assured and maintained in each of the privatization model options. Policy Team Responsible for research and insight pertaining to legal analysis and to any other state and federal regulations which may impact the potential privatization. Responsible for identifying and discussing the State’s legal obligations related to the provision of psychiatric hospital services, and describing whether any of the obligations are transferrable www.pcghealth.com | Health Presentation

PCG’s Approach www.pcghealth.com | Health Presentation

Project Steps Project Steps Jul 2016 Aug 2016 Sep 2016 Oct 2016 Nov 2016 Dec 2016 Jan 2017 April 2017 Data Collection Policy Analysis Baseline Model Development Comparative Model Development Privatization Scenario Development Recommendations & Final Report Legislative Hearings Gather publicly available data, departmental data, and stakeholder input. Review relevant state and federal laws and regulations and national trends regarding state obligations to psychiatric hospital services. Develop financial and service delivery baseline models. Develop comparative model based off of similar peer facilities. Compare baseline models to comparative model to develop privatization scenarios. www.pcghealth.com | Health Presentation

Stakeholders Division of Behavioral Health Fairbanks Memorial Hospital Town Hall Alaska Psychiatric Institute Alaska Legislature Department of Health and Social Services- Commissioner’s Office Alaska Mental Health Trust Authority State Hospital and Nursing Home Association Alaska Department of Administration, Division of Personnel Alaska Behavioral Health Association Anchorage Community Mental Health Services Alaska Native Tribal Health Consortium Juneau Alliance for the Mentally Ill Alaska Department of Health and Social Services- Human Resources Alaska Native Health Board Providence Alaska Medical Center Alaska State Court Alaska Regional Hospital State Attorney General’s Office Mat-Su Regional Medical Center Department of Corrections Advisory Board on Alcoholism and Drug Abuse Yukon Kuskokwim Health Corporation Alaska Mental Health Board Disability Law Center of Alaska Bartlett Regional Hospital www.pcghealth.com | Health Presentation

Project Contact Information Michael Powell Alaska DBH Health Program Manager Engagement Manager michael.powell@alaska.gov  (907) 264 - 0735 Coy Jones PCG Senior Consultant Project Manager Service Delivery Team Lead coyjones@pcgus.com (512) 287- 4691 James Waldinger PCG Associate Manager Engagement Manager jwaldinger@pcgus.com (617) 426 - 1123 www.pcghealth.com | Health Presentation

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