BLHC Funds Flow Plan Steering Committee December 15, 2015

Contents Developing The Plan – Input From The PPS BLHC DSRIP Award Overview of the Distribution Process BLHC Funds Flow Process Payment Received Contribution Percent Distribution Factor Performance Adjustment Graphic Example – Project 3.f.i Questions and Discussion

Developing The Plan – Input From The PPS BLHC’s approach to developing the funds flow methodology included oversight and input from the Executive Team and the Finance Committee

Developing The Plan – Input From The PPS Project Leads and Team members provided input regarding funds flow priorities. Board members provided input on the methodology, priorities and objectives. The recommended methodology reflects the involvement of the broad provider network in the funds flow plan process

BLHC Award And Funds Flow Overview

Overview of the Distribution Process The funds flow distribution process begins with the receipt of an actual DSRIP payment from DOH. Receipt of payment by BLHC initiates the planning and distribution process. The actual distribution of payments requires specific steps related to the distribution of funds for PPS level costs and contingency reserves

Overview of the Distribution Process The funds flow process includes consideration of PPS level costs and reserves that are needed for the administration of the PPS and implementation of DSRIP projects: The actual payment received – including recoups or reductions applied by DOH – impacts the amount available for costs and distribution to providers. Distribution to the PPS Lead for administrative and implementation costs Reserve or contingency payments as defined or approved by the PPS Other PPS level payments including financial sustainability The amount remaining after PPS level costs and reserves are deducted is eligible to be distributed to the provider partners.

Overview of the Distribution Process After determining the amount available to be distributed to the provider partners – the actual payment to the provider is calculated: The amount available to each provider type is calculated first based upon their project participation and an established “contribution percentage”. Each of the provider type “pools” is then distributed to the individual provider or contracting entity based upon a distribution variable or factor that is defined for each type (i.e. attribution, visits, discharges) The provider’s performance against specific requirements defined in their contract will then be applied as a final “performance factor” adjustment to determine their eligible payment Each contracting entity with providers participating in a project will receive a minimum payment amount to acknowledge their participation in the PPS and the related work effort.

BLHC Funds Flow Process

BLHC Funds Flow – Payment Received BLHC PPS receives DSRIP payments based on its achievement of DSRIP project goals BLHC expects to receive its DSRIP payments twice per year – January and July Payments would be distributed to providers within 60 days

BLHC Funds Flow – Contribution Percent The remaining payment is allocated to each DSRIP Provider Type based upon a Contribution Percent assigned to each Provider Type by Project. Project Leads and Co-Leads will receive an allocation for their contribution.

BLHC Funds Flow – Determine Provider Level Amount Payments will be distributed to the BLHC PPS Contracted Entities. Eligible payment is based upon a Distribution Factor for each Provider Type The plan is flexible in that the factors can be revised if needed in future periods. A minimum payment per Contracted Entity will be paid as part of Project 2.a.i

BLHC Funds Flow – Performance Adjusted Provider eligible payments will be adjusted based upon their performance in meeting achievement values for each project Distribution would be made within 60 days of BLHC receiving payment from DOH. Amounts not paid due to non-performance will be held to allow provider opportunity for review. They will be included in future distributions by the PPS if not disputed.

Graphic Example – Project 3.f.i The Distribution Factor may vary by Project and can be changed by BLHC in future periods. Distribution to Providers would be made within 60 days of BLHC receiving payment from DOH.

QUESTIONS And DISCUSSION BLHC Funds Flow QUESTIONS And DISCUSSION

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