IGNITE Leadership Academy Action Learning Project 2016-17 | Page 21

Sabrina McLeod
Director of Finance
St. Ann’s Home
Support Allocation Methodology for
Cost Accounting Analysis
1
How would you describe your Action Learning Project and the difference you hope it will make to advance
your organization’s mission (or the field) and benefit the individuals you serve?
My Action Learning Project involves setting up an appropriate allocation methodology for indirect/administrative support for our cost accounting
software. As we move closer to risk adjusted payer contracts, it will become increasingly necessary for us to be able to know what it costs
us for individualized care for our residents and patients. This will allow us to be in a better negotiating position when it comes to negotiating
our contracted reimbursement. It is sometimes very easy to identify the costs that are directly to bedside care of a resident/patient, but it is
not always easy to identify the administrative or overhead costs. This project will help me identify what costs need to be allocated, and how
to properly allocate those costs so we can get to an individualized cost of care for every resident/patient in our care. It will put us in a better
negotiating position as we move into negotiated rates for services that were previously paid for with a per diem rate.
2
How have the relationships you’ve developed as part of your project (with mentors, partners, stakeholders,
etc.) influenced this direction and you as a leader?
The relationships I’ve developed as part of this project helped clear a path for me to make sure that I am helping put St. Ann’s in a better
negotiating position. The competition in our field, especially in the Rochester area, is pretty stiff, and with the two major hospital players, it is
important for us to know how we can help the hospitals when it comes to risk adjusted contracts. We want to be a good risk partner for the
hospitals. The relationships I have developed have given me a great perspective on how important it is to think outside the box when developing
the allocation methodology. This has given me some great “a-ha” moments that I know will help me think about this project a little differently than
the original mind set I had.
3
What have been important turning points for you, in your own learning, as you’ve engaged with the action
learning process (you might consider a surprise, insight, setback, or challenge)?
Although I knew this would be a big project, I think I somewhat underestimated the amount of allocated expenses we actually have, and how
unprepared we were to be able to start allocating those expenses. Some of the information is not readily available for me to do the project, so I
had to take a step back and begin with the information before I could start the methodology. One other thing that somewhat surprised me is how
much I had to break down the reason for doing this project to those in my organization. It’s a pretty nebulous project to the “bedside” providers,
but I need their buy-in so that I can get information from them (such as how much time they spend on particular activities). I have seen many
challenges with this project, but I’m not discouraged...it just encourages me more that we need this project to happen.
4
How do you hope your project might unfold in the months and years ahead and what impact do you hope it
will have on the field at large?
I think that this project will set up a good baseline, but will need to be refined from time to time. I think that the challenge in our organization is
going to be “how do we cut administrative expenses” without cutting quality. I hope this project will give us insight into what opportunities we
may have in being able to cut administrative expenses in a strategic manner.
5
How has the action learning process in the context of the Leadership Academy experience contributed to
your growth as a leader?
The Leadership Academy helped me approach this project with the patience that I don’t always have. I like to get to an conclusion as quickly as
possible. I can’t do that with this project. The strategies I’ve learned in the leadership academy about working with teams, moving towards change,
and energy have helped me approach this project with some new insights. I think that this is definitely my growth as a