Helping providers achieve efficiencies so they can focus on their                    mission of

improving the quality of services offered.                  

Vision – Our vision is for a financially healthy,

compassionate, vibrant, self-sustaining organization.

Our Mission is to ensure that agencies and

organizations serving people with disabilities

have practical tools and services to meet their

visionary ends

Values – Ethics, Integrity, Honesty, Execution with

Quality and Promptness. Recognizing we are

serving those who serve those in need.

Founded in 2012

Fred Sears named Executive Director

in August 2012

Today’s Report:Year I Activities/Accomplishments

Management Services Solutions is a for profit LLC.

Initial funding for the Management Services Organization came from selling shares to investors:

100 shares @ $7,500/share

Board of Managers Executive Committee made up of: Marcel Martino, Chairman Greg Sorrentino, Vice-Chairman Thomas Mandelkow , Treasurer Thomas Sy, Secretary

Monthly Board meetings.

Organizational Objectives

Dan Brown Associate Executive

Director Franziska Racker Centers

Stephen FriedmanPresident/CEO

UCP Suffolk

Mark PetersExecutive Director

Able2

Thomas MandelkowExecutive Vice President

CAO/DFO, CP of NYS

Marcel MartinoPresident/CEO

Inspire of Orange County

Howard SiegelPresident

Irwin Siegel Agency, Inc.

Geno DeCondoExecutive VP, Finance

Upstate Cerebral Palsy

Greg SorrentinoChief Operating Officer

Center for Disability Services

Thomas SyExecutive Director

Aspire of Western NY

BOARD OF DIRECTOR MEMBERS

Operational ObjectivesProvide goods and services that bring cost savings, operational efficiencies and value to the customers.

Create business models that provide value to the customers as well as a sustainable revenue stream to the MSO so that we can:

Increase Owner Equity

Develop and grow services that provide value to the customers

Provide a return on investment to the owners that includes operational savings and

rebates

1/1/2013 we began our relationship with UISS/Premier as our GPO partner, a non-exclusive business

relationship

The estimated purchased

volumes of non-clinical, essential

products is $15,000,000

To date we have analyzed $313,000 of

purchases representing $106,000 of savings or

34% cost reduction opportunity

Need contract for us to collect purchase data

We will work towards a centralized

procurement business model to create purchasing

efficiencies

Business Plan ActivitiesSelection of a National Group Purchasing Partner

Business Plan Activities

Task Groups formed forHR Services

3 Executive Directors engaged

to review RFI’s

Task Groups formed for

GPO Services

3 Purchasing Managers engaged

to review RFI’s

Transportation Needs (fuel,

maintenance, purchase/lease

)

IT Services

Payroll Services

Energy Needs

Pharmacy Services

HR Services

Business Plan ActivitiesSurvey Information obtained for the following

Business Plan ActivitiesMarketing to other Not-For-Profit providers

Abilities First, Poughkeepsie, NY became an Investor ACDS, Plainview, NY is pending board approval I also continue to work collaboratively with QSAC/AGNY and

IAC in NYC Made presentations to:

• CD Monarch, Rochester, NY• Community Based Services, North

Salem, NY• Community Services, Buffalo, NY• Ulster County NFP Group• New Horizon’s, Pleasant Valley, NY

• Person Center Services, Western

NY Network• Pathways, Corning, NY• Spectrum Services, Kingston, NY• United Way of Dutchess County

Business Plan Activities Creation of Pharmacy Services Business

We have 3,258 beds within the provider agencies 12 providers identified the need for help with controlling client

pharmacy costs Real opportunity for the MSO to create a closed door pharmacy

business that would not only save the providers on drug costs, but after 13 months return a positive cash flow

Added benefit will be working with our Medical Directors to build out a formulary, manage utilization

Negotiate drug costs from a position of strength Once established, we would then market this service to other

providers

Business Plan Activities Creation of Employee Benefits Program

7/1/2013 engaged Solid Benefit Guidance, to assist the MSO in creation of an employee benefit program.

This process will:• reduce the costs of health insurance• reduce the rate of increase • introduce wellness programs, lower cost supplemental, non-statutory

programs to the 18,000 employees within our family

SBG will assist in:• negotiating for us from a position of strength with the insurance

companies• cutting down on the number of insurance companies in use as well as the

number of brokers

Business Plan Activities Creation of Insurance Services Business

MSO becomes a licensed insurance broker. Which will allow us to:

Sell statutory and non-statutory

ancillary insurance products to the

providers

Reduce the commissionable

fees (savings to the providers) and

collect a portion of the

commissionable fee to the MSO

Creation of an IT Services Business

A high priority from the Executive Directors was assisting to manage the complexity of Information Technology services.

Center Information Services (CIS) out of Rochester, NY

Will help us build out a short-term and long-term business plan. To date we have surveyed and collected a needs assessment from 60% of the provider agencies.

Business Plan Activities

Through collaboration we expect to reduce the cost of administrative overhead (back office services) by offering centralized services that eliminates the redundancies and duplication of efforts in the provider organizations.

Create business models that provide customer value in centralization of core business practices that reduce the operating expense at the provider agencies as well as increasing owner equity in the MSO.

Establish data collection tools and processes so that MSS, LLC can provide solid benchmarking services to the providers, not only on goods and services purchased, for operating costs benchmarking to assist in determining best practices within the provider groups.

Business Plan Recap

Insurance Programs

Pharmacy

Anticipated Revenues

Revenue$300,000 - $700,000

Savings 2-8% on $10,000,000 spend

Revenue$100,000

Savings 2-10%

Business Plan Recap

35%

Business Plan Recap

S = R/E > 1