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In this scenario you are the Chief Information Officer (CIO) of a long-term care (LTC) organization that serves customers across four different states in your region supporting over 50 senior living and skilled nursing facilities. Because long-term care organizations are undergoing a great deal of state and federal level scrutiny around clinical outcomes and financial performance, your customers, the long-term care administrators of the facilities, are demanding greater levels of on-site reporting that integrate both clinical and financial data. The current data warehouse, called LTCView, is populated with sub-sets of reporting data feeds from five different client registration systems and three different clinical documentation systems. You are preparing to present your annual budget request to the board of directors of the facility. The major focus this year is growth and capacity planning related to data warehouse and business intelligence functions.
The total information technology capital budget for your company is $1.5 million per year and the total information technology operating budget is $960,000 per year. The LTCView Data warehouse application is supported currently with three Linux operating system servers which need to be upgraded for a total cost of $55,000. You are also recommending that an additional server be added at an estimated cost of $15,000. You are also recommending that a new Activity Monitoring (AM) application be implemented with a total cost of implementing that software anticipated at $40,000. The ongoing maintenance cost of the AM software is $8,000 per year and the ongoing maintenance cost of the additional servers on the current maintenance cost is an additional $7,000 per year.
Reflect on the feasibility of the CIOs budget request. What is the total new maintenance cost for the organization per year to implement the upgraded servers and AM software? Describe the value of performance management (AM) software to the organization. What kind of benchmarks would this software monitor for the long-term care organization once it is implemented?
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