Situation
Ivinson Memorial Hospital is a 100-bed facility located in Laramie, WY. Like many hospitals, Ivinson was operating on multiple, disparate systems to support each of its core functions.
With a myriad of hardware and software configurations that did not communicate interdepart- mentally or externally, Ivinson realized it was time to upgrade to a solution that would curb rising costs while providing a unified platform to deliver healthcare. Their goal was to replace all of their major systems with an integrated solution that would also provide shared Hospital Information Systems (HIS) and Patient Archiving Communication Systems (PACS).
Solution
With a strong balance sheet, Ivinson was in a financially sound position to buy and install all the hardware and software needed to upgrade their systems. However, after a significant review process, Hospital Management and CS Partners together proposed an alternative solution.
The team outlined a concept of creating a new technology services company that would not only provide the shared HIS and PACS systems for the hospital, but also offer those same services to rural hospitals in the region who normally would not be able to individually afford or manage such a solution.
The ultimate result was the creation and formation of a new and innovative health care services entity: Medicine Bow Technologies.
Ivinson Memorial Hospital Case Study
"Problem solving outside the box" only begins to explain CS Partners situation analysis and strategic planning for Ivinson Memorial Hospital. No one argued that the hospital needed a substantial technology upgrade, but significant questions had arisen regarding the best type and fit as well as the cost of ownership and return on investment. Initially, CS Partners was invited by hospital management to analyze and give input regarding the various options under review. However, as data was collected, interpreted and communicated, it became clear to all parties that an alternative solution was possible; one that would not only enhance the performance and bottom line of the hospital, but extend benefit to the region as well.
Working under the leadership of Ivinson Memorial's management team and board of directors, CS Partners formulated the creation of a new technology services company which would provide HIS (hospital information systems) and PACS (picture archiving and communications systems) solutions not only for the hospital but cost effectively to rural hospitals in the region. By leveraging the cost of the new systems among multiple hospitals, there would not only be cost reduction potential for Ivinson, but the result would be a more efficient and cost-effective integrated solution available to healthcare groups regionally.
To proof this concept, CS Partners used their VIP modeling tools to detail the business and fiscal feasibility of the proposed solution. They were able to capture the complexity and intricacies of creating and running the successful new technology services company including business formation, hardware, software, data center facilitation, business operations, and staffing. The VIP tools were able to calculate the new company's 5 year profit and loss and provide to hospital management the ability to continually track changes as the business plan evolved. Through extensive research and analysis, including site visits to similar ASP (applications services providers) companies ,surveys of potential customers, strategy sessions with vendors, meetings with hospital administration and other community leaders, CS Partners collected and analyzed the data utilizing its VIP tools, to formulate a 5 year business plan.
After 24 iterations of the VIP model, a comprehensive business model was agreed upon and presented to the Ivinson Memorial board for approval. The final model articulated a clear and detailed scope of operations for the new company over five years, including profit loss information, cash flow requirements, investment requirements, customer adoption rates and staffing needs The plan demonstrated that an investment in Medicine Bow would not only provide hospital it's information systems for the next 10 years, but Ivinson could potentially save millions of dollars over five years while affordably offering HIS and PACS solutions regionally; a true win/win scenario for Ivinson Memorial, for the community and its constituents and for healthcare organizations throughout the region.
After much review and discussion, The Ivinson Memorial board approved the plan, established the initial funding, signed a 5 year agreement with Medicine Bow as their exclusive provider of information technology, appointed the Medicine Bow Technologies Board of Directors and retained CSP Managing Partner Don Carlson as their founding CEO.
With the new company formed, a technology partnership was negotiated with the University of Wyoming to build a data center at the University's newly constructed Wyoming Technology Business Center; and human resource planning was undertaken to transition the information systems department of the hospital to Medicine Bow. PACS and HIS solution vendors were evaluated, chosen, and installed. Marketing began to introduce the regional healthcare community to Medicine Bow. Each step of the way, CS Partners provided the needed expertise and communicated options to all hospital stakeholders. As a result Ivinson Memorial remains confident in its decision to create Medicine Bow.
"CS Partners' "VIP" Financial Modeling helped us make the decision to create our new subsidiary, Medicine Bow Technologies"
C. L. Burton
Board of Trustees
Ivinson Memorial Hospital