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Charter Agencies Halo Effect

April 25, 2006

 

“Halo effect” is the term we use to describe improvements that Iowa Charter Agencies have reported, actions that are only indirectly attributable to Charter Agency status. These actions did not require Charter Agency authority, but the agencies report that they would not have happened in the pre-Charter Agency environment. Charter Agencies has had the effect of prompting creativity and an assertiveness that would not have happened otherwise. Examples:

  • The Departments of Human Services and Corrections are consolidating pharmacy purchases to save money. (The halo effect prompted the initiative; then the “stand in the shoes” purchasing authority made it work better.)
  • The Alcoholic Beverages Division is developing three major on-line systems to better serve their customers: liquor licensing applications, tax reporting and payments, and product ordering.
  • The Department of Corrections joined with a local racetrack and the Animal Rescue League to create a thoroughbred retirement farm to provide work opportunities and rehabilitation for inmates, as well as a safe haven for retired racehorses.
  • The Veterans Home and Corrections partnered to turn an old kitchen area into an outpatient clinic.
  • The Department of Natural Resources created an on-line Nature Store that sells outdoor recreation, conservation, and wildlife-related clothing to raise awareness and a little revenue.
  • Department of Corrections leaders increasingly talk about “running their business.” “Charter Agencies gave us the confidence to try something new – trying to run like a business.” Examples: Reference Point consultants work currently underway to save money; week of January 23, 2006 Kaizen event on procurement, delivery, and inventory processes; work continues with the Department of Administrative Services and others on purchasing.
  • The Department of Human Services dramatically changed the way they implement Iowa’s Medicaid program. Instead of hiring one major contractor for the bulk of Medicaid administration, the State of Iowa took over the general contractor role and sought bids for best-in-breed services for each of the eight major functions that make up Medicaid. DHS then put all the winning providers under one roof on one information and data warehouse system. Iowa is now both saving money and providing more and better service to Iowa’s Medicaid clients.
     

  More detail on the “halo effect” at the Department of Human Services . . .