On behalf of the three partner hospitals, Western Maryland Regional Medical Center

Attachment F – Cost Per Strategy per Calendar Year (2016-2019)

Allocation methodology applied:

• 
  Regional Education Center and Technology/Training and Orientation cost allocated to teams based on # of FTE's per team/total FTE's for all teams combined.
  
• 
  Enabling Strategies cost allocated to teams evenly for all years (1/3).
  
• 
  Technology/Training and Orientation cost reduced from $1,000,000 in year 2 to $500,000, and from $500,000 to $300,000 for year 3 and 4.
  

Cost per Strategy for all four years combined:

	Calendar Years 1 - 4 Combined (2016-2019)
	Strategy 1: BH	Strategy 2: CCM	Strategy 3: Reduce Avoid. Use	All 3 Strategies Combined
A. Number of Patients	7,223	1,153	3,171	11,547
B. Number of Medicare and Dual Eligible	798	907	1,291	2,996
C. Annual Intervention Cost	$ 8,412,494	$ 16,418,409	$4,605,406	$ 29,436,309
D. Annual Intervention Cost/Patient (C/A)	$ 1,164	$ 14,239	$ 1,452	$ 2,549
E. Annual Intervention Cost (B x D) For Medicare and Dual Eligible Patients	$ 929,415	$ 12,915,435	$ 1,874,985	$ 15,719,837
F. Annual Charges (Baseline)	$ 113,881,912	$ 210,003,520	$41,940,516	$365,825,948
G. Annual Charge Savings % Target	11%	18%	11%	15%
H. Annual Gross Charge Savings (F x G)	$ 12,811,715	$ 38,325,642	$ 4,508,605	$ 55,645,962
I. ROI: Gross Charge Savings Per Intervention Cost Invested (H / C)	1.52	2.33	0.98	1.89
J. Variable Savings %	38%	38%	39%	38%
K. Variable Savings (H x J)	$ 4,868,451	$ 14,647,745	$ 1,751,016	$ 21,267,213

The following Tables Detail Cost per Strategy/year for 2016-2019.

Attachment F cont. – Cost Per Strategy per Calendar Year (2016-2019)

Strategy 1: Behavioral Health						4 Year Summary Total
Cost Center	Total FTE's	2016 Year 1	2017 Year 2	2018 Year 3	2019 Year 4	Total Project
Salaries	22.30	$ 1,259,961	$ 1,679,948	$1,679,948	$1,679,948	$ 6,299,805
Strategy 4: Regional CM Education Center (RCMEC)		$ 100,606	$ 100,606	$ 100,606	$ 100,606	$ 402,424
Technology/Training and Orientation		$ 269,649	$ 134,825	$ 80,895	$ 80,895	$ 566,264
Enabling Strategies		$ 286,000	$ 286,000	$ 286,000	$ 286,000	$ 1,144,000
Total	22.30	$ 1,916,216	$ 2,201,379	$ 2,147,449	$ 2,147,449	$ 8,412,494

Strategy 2: Complex Care Management						4 Year Summary Total
Cost Center	Total FTE's	Year 1	Year 2	Year 3	Year 4	Total Project
Salaries	45.70	$2,657,850	$ 3,543,800	$ 3,543,800	$ 3,543,800	$ 13,289,250
Strategy 4: Regional CM Education Center (RCMEC)		$ 206,174	$ 206,174	$ 206,174	$ 206,174	$ 824,699
Technology/Training and Orientation		$ 552,599	$ 276,299	$ 165,779	$ 165,779	$ 1,160,459
Enabling Strategies		$ 286,000	$ 286,000	$ 286,000	$ 286,000	$ 1,144,000
Total	45.70	$ 3,702,624	$ 4,312,274	$ 4,201,754	$ 4,201,754	$ 16,418,409

Strategy 3: Complex Care Management						4 Year Summary Total
Cost Center	Total FTE's	Year 1	Year 2	Year 3	Year 4	Total Project
Salaries	14.70	$ 564,570	$ 752,761	$ 752,761	$ 752,761	$ 2,822,853
Strategy 4: Regional CM Education Center (RCMEC)		$ 66,318	$ 66,318	$ 66,318	$ 66,318	$ 265,275
Technology/Training and Orientation		$ 177,750	$ 88,875	$ 53,325	$ 53,325	$ 373,276
Enabling Strategies		$ 286,000	$ 286,000	$ 286,000	$ 286,000	$ 1,144,000
Total	14.70	$ 1,094,640	$ 1,193,955	$ 1,158,405	$ 1,158,405	$ 4,605,406

All Strategies Per Year (2016 – 2019) & 4 Year Cumulative						4 Year Summary Total
Cost Center	Total FTE's	Year 1	Year 2	Year 3	Year 4	Total Project
Salaries	82.70	$ 4,482,381	$ 5,976,509	$ 5,976,509	$ 5,976,509	$ 22,411,909
Strategy 4: Regional CM Education Center (RCMEC)		$ 373,100	$ 373,100	$ 373,100	$ 373,100	$ 1,492,400
Technology/Training and Orientation		$1,000,000	$ 500,000	$ 300,000	$ 300,000	$ 2,100,000
Enabling Strategies		$ 858,000	$ 858,000	$ 858,000	$ 858,000	$ 3,432,000
Total	82.70	$ 6,713,481	$7,707,609	$ 7,507,609	$ 7,507,609	$ 29,436,309