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Feasibility Assessment of the Service Delivery Model

Article  in  American Indian and Alaska native mental health research (Online) · February 2004
DOI: 10.5820/aian.1102.2004.99 · Source: PubMed

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 FEASIBILITY ASSESSMENT OF THE SERVICE DELIVERY MODEL

Kenneth M. Coll, Ph.D., Gerald Mohatt, Ed.D., and Pamela L. LeMaster, Ph.D.

Abstract: In this component of the evaluation, the Circles of

Care grantees assessed the feasibility of their model systems
of care. The goal of the Feasibility Assessment was to
assure that each model system of care was well designed
with careful consideration of project goals, community
resources and readiness, cultural competence and
measurable outcomes.

The Feasibility Assessment was designed to answer the following

questions: Are the needs for services in the community matched with model
systems of care? Are there adequate human and other resources to bring
the plan to fruition? Is the management system appropriate to the service
system design? Is the service system design financially sound? Is it
economically justified?

Assessing the Feasibility of the Strategic Plan

Grantee Methodologies

One of the final steps required to accomplish the goals and objectives
identified in the Circles of Care (CoC) Guidance for Applicants (GFA) was to
complete an assessment of the feasibility of the new models. The GFA
stated, “In order to add greater reliability to the service system design,
grantees will perform a feasibility assessment of their preliminary design
and complete the final design by making revisions consistent with the
assessment.” Prior to the implementation of a new System of Care, it is
essential to determine if the system is fiscally and programmatically feasible,
as noted from one grantee:

99
 100 VOLUME 11, NUMBER 2

This feasibility study and subsequent report is important to

the program because it allows the project staff and
evaluators to consider the question of cost effective
programming. Determining if there are more efficient ways
to accomplish the same outcome is part of fiscal
responsibility. In addition, cost efficiency allows more youth
and families to be served with available resources.

In order to guide them through this process, the Circles of Care

Evaluation Technical Assistance Center (CoCETAC) conducted an orientation
to feasibility assessments and provided the grantees with a comprehensive
CoC Program Feasibility Assessment Checklist. This checklist included a
number of components critical to conducting a feasibility assessment including
a description of the strategic plan, their community needs assessment, as
well as descriptions of human resources and material inputs, and
management, financial, and economic analyses.
The overall goal of the CoC project was to plan the design of a
family-focused, community-based, wrap-around service delivery model that
is culturally appropriate and cost-effective for youth who are struggling with
Serious Emotional Disturbances (SED). One of the steps in the strategic
planning of any new service delivery model is to gather information about
the feasibility (in terms of cost outlay) of developing certain programs currently
missing in each community. The feasibility discussion among the grantees
was framed by Wolff’s (1998) “economic evaluation for measuring societal
costs” (p. 385). Wolff noted, “…as policy makers have struggled to get the
most out of each public dollar, economic evaluations of public-sector
investments have become more important” (p. 386). A common form of
such evaluation is the cost analysis study. The Government Accounting Office
is increasingly using cost analysis to support public spending on children’s
programs (Wolff, 1998). The Substance Abuse and Mental Health Services
Administration (SAMHSA) has now established well-specified “cost-bands”
for the residential, intensive outpatient and regular outpatient services that
its grants fund (S. M. Manson, personal communication, November 3, 2003).
A cost analysis worksheet was subsequently developed to provide
the grantees with a standard procedure for calculating specific projections
of costs related to proposed projects that emerged from their systems of
care planning. Specifically, one grantee (in collaboration with community
members and service providers) identified community-based residential
treatment as a high programmatic need. It was noted that youth in this
community needed the intensive services that residential treatment can
provide, as well as on-going extended family support and readily accessible
traditional healing services. As an illustrative example, a number of costs
were identified by the grantee and plans were developed to address them in
 FEASIBILITY ASSESSMENT 101

the System of Care model (see Table 1). As asserted by Wolff (1998) and
indicated in Table 1, cost analysis should include specific cost categories and
provide a calculation of average cost per youth served.

Table 1
Cost Analysis Worksheet for Community Youth and Family Service
Providers Source: Designing Economic Evaluations to Measure Societal
Costs (Wolff, 1998)

EXAMPLE – Proposed ADOLESCENT RESIDENTIAL TREATMENT FACILITY

Cost categories (annual) and cost (in dollars)

1. Total On- Budget Costs - including:

a . salaries, wages, benefits 500,000
b. supplies (e.g., paper, cleaning, copying) 70,000
c. equipment (e.g., new computers, new copier) 100,000
d. utilities (heat, phone, electricity) 50,000
e . building space (no rent; high maintenance) 100,000
f. other (specify – vehicle maintenance) 40,000
g. other (specify- horse maintenance) 10,000
h. other (specify - food, kitchen maintenance) 20,000
i. other (specify- school books, supplies) 10,000

2. Total Off-Budget Costs - resources paid (fully or partially by other agencies)

a . grant funding (sources – State, Federal) 60,000
b. foundation funding (source – Casey Foundation) 20,000
c. donated labor (300 hours at $20 per hour) 6,000
d. equipment (2 vehicles, 2 computers, 1 copier) 25,000
e . land - 0-
f. building (one building) - 0-
g. administrative services (specify) - 0-
h. other off-budget funding? - 0-

TOTAL GROSS RESOURCE COSTS (1 + 2) = $1,011,000

3. Deducting Unrelated Costs

a . non-client services (estimated labor, transportation & materials)
research 10,000
community education 30,000
training activities 30,000
b. contracted-out specialized services (charity) 50,000
(involves money transfer only)
c. unrelated services -0-
(services not to adolescent/families)________________

NET RESOURCE COSTS = (1 + 2) – 3 = 1,011,000 - 120,000 = $891,000

Net resource costs divided by number served = Average Costs per person
891,000/400 = $2,227.50 per year ($185.62 per month)
102 VOLUME 11, NUMBER 2

CoCETAC suggested that grantees focus on assessing the feasibility

of adding new services or programs included in their models as well as for
any modifications of existing services or programs instead of trying to assess
the feasibility of the entire plan. Much of this effort was completed among
the program staff; however, several of the grantees indicated they brought
the models back to the communities for review and comment. One grantee
asked questions about the programmatic and fiscal feasibility of their model
during meetings with leaders, Elders, community members, school
professionals, and health care and special education providers.

Key Findings

Need for Services

In developing their Systems of Care, one of the primary tasks was

to identify services or programs missing in the current service system and
identified by the communities as something that they would like to see
addressed in any new system. The grantees used their completed needs
assessment and service system descriptions to determine what these
components might include. Based on the needs that were identified by the
communities, grantees included new services or modifications to existing
services or programs and addressed these in their model. Overall, grantee
communities observed a lack of mental health services or observed that
existing services are under-funded and inadequate. A number of needs
were identified by the grantees and plans were developed to address them
in their System of Care model. Several examples serve to illustrate (and are
included in Table 2). For instance, one of the grantees identified several
needs in their current system as: (a) the need for trained, credentialed
American Indian and Alaska Native (AI/AN) service providers with advanced
degrees; (b) coordination or integration between certain sectors (e.g.,
substance abuse and mental health services); and (c) to address the isolation,
burnout, and high turnover among service system staff. These needs were
addressed by incorporating a new training model that included continuing
education/training for providers in their System of Care. Another grantee
addressed barriers to services, such as lack of access to funds, transportation,
telephone, and physical access to services, by the development of satellite
clinics in a number of their communities. Other grantees identified the need
to involve the family and community support systems more formally into
their service models and addressed this by including such things as a Family
Support Circle and extended family (e.g., Tiospaye) support system.
 FEASIBILITY ASSESSMENT 103

Table 2
Selected Needs and Model in Four Circles of Care Communities

Grantee Identified Need Model Component

Cheyenne River Barriers to services - lack of Development of

Sioux Tribe access to funds, transportation, satellite clinics in
telephone, physical access communities
to services

Fairbanks Native Trained, credentialed AI/AN Ch’eghutsen’ training

Association service providers & AI/AN providers model - continuing
with advanced degrees; coordination education/training
or integration between service for all
sectors; isolation, burnout & high Ch’eghutsen’
turnover among service system staff providers

Inter-Tribal Council Parent and family support Family Support (F.S.)

of Michigan Services, with F.S.
Coordinator, F.S.
Circle, and
Independent F.S.
Organization

Oglala Lakota Community way of life Tiospaye support

Nation patterned by Lakota rules system

Available Resources

Another component in the assessment of the feasibility of their service

systems was an analysis of the resources each grantee community has
available to them, including human and other material resources. One of
the primary considerations was the availability and adequacy of human
resources. All of the grantees indicated that they would need to hire additional
staff in order to implement their new service systems. They identified specific
positions with the desired educational level and experience in their Feasibility
Assessment reports. As noted in their service system descriptions, the
grantees concluded that these human resources are scarce. In particular,
grantees residing in rural settings reported a lack of AI/AN providers who
either possessed appropriate training and credentialing or had advanced
degrees. In contrast, grantees located in urban settings noted that, while
individuals with the desired background were more readily available, they
often lacked cultural competence, and AI/AN professionals are not readily
available. In spite of this, several grantee communities identified staff
members from their CoC programs to assume a number of the identified
positions within their Systems of Care.
 104 VOLUME 11, NUMBER 2

Through the course of the grant, material needs were identified and
budgeted by each grant community, including building space, office supplies,
informational systems (e.g., computers, software), and utilities. This process
allowed each grantee the opportunity to engage in specific planning so such
material needs could be clearly articulated, as grant writing and other funding
opportunities became available. Table 3 provides an illustration of needs for
material supplies and utilities.

Table 3
Material Inputs/Supplies and Utilities

Cost categories (annual) and costs (in dollars)

1. Total Material Inputs/Supplies and Utilities - including:

a . supplies (e.g., paper – 3000, cleaning – 5000, copying – 7000) 15,000

b. equipment (e.g., computers, upgrades – 15,000, new copier,
upgrades – 15,000) 30,000
c. utilities (heat – 3,500, phone – 8,000, electricity – 3,500) 15,000
d. building space (rented – 15,000; and maintenance – 5,000) 20,000

Total $80,000

Management System

Another essential element of the grantee feasibility assessments

was an analysis of the local management system. As one might expect, the
ownership and legal framework of the new Systems of Care range from
tribal oversight to oversight by private non-profit organizations, with Executive
Boards that have tribal, family, community, and/or service provider
representation. One of the grantee communities planned a small program
that would depend heavily upon other programs that currently exist to provide
a new System of Care. Another grantee community expressed concern
about the governance of their project, after a decrease in anticipated funding
made it necessary to develop a scaled-back version of their model, which
would be implemented in fewer communities. Because they hope eventually
to fully implement the model, the grantee community identified the importance
of outreach to these communities for their continued input and collaboration.

Justification for the System of Care

Other components of the grantee communities’ assessment of the

feasibility of their new service systems included financial and economic
analyses. In general, the majority of grantees reported that their programs
 FEASIBILITY ASSESSMENT 105

were considered “financially feasible” (see Table 4) given that expected

revenues were equal to or greater than expenses. However, a problem was
identified in that most of the grantee communities were relying on local,
state, and/or federal grant monies to fund a significant portion, if not all, of
their programs, and they recognized that they would have to replace these
funds when they completed these grants. As a result, several of the grantees
acknowledged the need to investigate other funding options that would provide
longevity for their programs. As one grantee noted, “The system of care
needs to aggressively seek funding sources beyond federal grants to create
a system that can be sustained over time. In addition to private foundations,
Medicaid and third party reimbursement needs to be explored”. Another
option identified by one of the grantees was to have some of the costs
absorbed by member agencies.

Table 4
Financial Feasibility Analysis

Source: Designing Economic Evaluations to Measure Societal Costs (Wolff, 1998).

Annual Estimates (in dollars)

1. Total Investment Estimates - including:

a . donated labor and matching funds (see Appendix A) 30,000
b. Volunteer services (extended families) 80,000

Total investment estimates $120,000

2. Total Revenue Estimates – including:

a . grant funding (source –Federal) 600,000

Total: investments and revenue $720,000

3. Total Operating Cost Estimates – including:

a . salaries, wages, benefits 300,000
b. supplies (e.g., paper, cleaning, copying) 15,000
c. equipment (e.g., new computers, new copier) 30,000
d. utilities (heat, phone, electricity) 15,000
e . building space (rented; and maintenance) 20,000
f. other (specify – community, staff and service
provider training –e.g., wraparound model,
Cultural Mental Health training) 40,000
g. other (specify- travel) 80,000

Total operating costs $500,000

Financial Feasibility =
Total investments and revenue (720,000) less total operating costs (500,000) = $220,000
The financial feasibility for this program is adequate given that revenue is greater than
costs. However, the federal grant subsidy will end in 2005. It will be important to begin now
to cultivate more potential sponsors/donors for the continued viability of the program.
106 VOLUME 11, NUMBER 2

Wolff (1998) indicates that financial feasibility which addresses

annual investments (e.g., volunteer, donated service) and revenue related to
costs can provide sound justification to policy makers for continuing
community-based children’s services. Table 4 provides an example of a
financial feasibility analysis used by one grantee to solicit additional funding
from policy makers in their community and state. The cost effective focus on
community-based, family-focused volunteer services enabled this grantee to
successfully lobby its state and federal representatives for additional funding.

Cultural Competence and Community Readiness

All grantees worked in diverse tribal cultural settings. Given these

contexts, a critical ethical and process element of the feasibility assessment
was to determine if the plans were culturally appropriate and acceptable to
the communities. Historically, either or both Indian Health Service (IHS) and
state mental health units had served each of the communities. Needs
assessments revealed that services were often delivered using personnel
and methods that were alien to the communities. For example, the Alaska
service system exported large numbers of children with SED to out-of-state
placements in which their cultural background was not acknowledged, and
aftercare considerations (often returning to a very remote and small village)
were not part of the treatment modalities. Additionally, grantees discovered
that communities associated SED with stigmatization and there was a
reluctance to identify children early. Again historically many AI/AN children
had been diagnosed (and misdiagnosed) with learning disabilities and placed
in special education programs. In many grantee communities, this lead to
suspicion and distrust of mental health professionals and programs. For
example, in Alaska and South Dakota, such diagnoses have led AI/AN parents
to believe that the state might take their children from them. Given these
considerations, grantees had to assess the attitudes and awareness of the
community for engaging in the programs that were developed.
Grantees dealt with this issue in a variety of ways but with some
significant commonality. First, grantees involved the community in the
development of the system of care models. Focus group methodology was
utilized to elicit input on what the model should include. Significant for many
of the grantees’ process was the inclusion of Elders and Traditional Healers
to insure that the model was grounded in the culture. Examples of how this
shaped the program models were the culturally grounded definitions of SED.
One program, in California, continued informing the community and providers
throughout their process through a regular newsletter. This newsletter
informed communities and developed awareness. Second, two of the grantees
utilized the Community Readiness model developed at Colorado State
University to structure their planning. One program in Oklahoma structured
their entire planning process using this model while another program in
 FEASIBILITY ASSESSMENT 107

Alaska used it in the final stage of planning to assist in implementation of

pilot projects. Third, at least one of the grantees returned to each community
assessed during the needs assessment process to garner feedback related
to the question of whether the assessment was feasible and culturally
grounded. Many grantees held trainings and provider meetings to garner
feedback on the models. Finally, this feedback from diverse sources was
used to continually revise the systems of care models.

Conclusions

The feasibility assessment was reported to have a positive impact

on the CoC planning process, as it proved to be quite valuable for practical
planning. The most frequently reported challenges were related to getting
accurate information, and the opportunities most mentioned were related to
discovering new ways to make sustainability more of a reality. Ethical concerns
consistently revolved around respect, cultural competence, and community
ownership. However, in the end, all grantees reported high degrees of ethical
practice related to feasibility assessment as outlined in the CoC GFA. Indeed,
grantees overwhelmingly noted that evaluators and policy makers should
make note of the process used in feasibility assessment (and other aspects
of the CoC process) and use it as a participatory model for federal government
and AI/AN collaboration. This issue is particularly important given the recent
development of federal “cost-band” specifications for mental health (S. M.
Manson, personal communication, November 3, 2003).
In conclusion, the CoC grantees considered a number of essential
elements for feasibility assessment, including the needs of their communities,
the resources available to them, the management system necessary for
implementation, the financial and economic soundness of their plans, and
cultural competence and community readiness in developing their Systems
of Care. While optimistic that they would be able to successfully implement
their systems with the revenues available to them, they were also realistic in
acknowledging that they need to identify other funding options for the
sustainability of their programs.

Kenneth M. Coll, Ph.D.

Boise State University
Counselor Education Department
1901 University Drive
Boise, ID 83725
Phone: 208-426-1821
Email: [email protected].
 108 VOLUME 11, NUMBER 2

Reference

Wolff, N. (1988). Designing economic evaluations to measure societal costs. In

M. H. Epstein, K. Kutash, & A. Duchnowski (Eds.), Outcomes for children
and youth with behavioral and emotional disorders and their families: Program
and evaluation best practices (pp. 385-424). Austin, TX: Pro-ed.

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