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Supporting Primary Care Networks

Allowable Cost Categories 

 
Business Plan Development funding must be used only for business planning purposes, and is advanced to recipients on the understanding that PCNs will adhere to this policy and any other policies established by PCIC in this regard.

The following are the cost categories that should be considered by proposed PCNs in estimating their funding requirements during business planning:

Physicians: Physician leaders who are actively and directly involved in developing the PCN business plan can be compensated. Typically, this is at the established rate. The amounts in this column should be payments for time only. Reimbursement for travel expenses and other items should be entered in other columns of the detailed budget chart.

Project Manager:
PCNs are encouraged to engage professional help and support in developing their business plans. Typically, this involves expenditures for a project manager, project coordinator, or business planner. If AHS representatives are engaged, the time required for AHS representatives to participate should be reimbursed so that their responsibilities may be backfilled. In any case, this category is reserved solely for fees for applied time, and should not include any expenditures, such as travel costs, that can be claimed under other categories.

Administrative Support: Business Plan Development funds may be used to:

  • Conduct a technology or needs assessment for the PCN. This may include the services of a data analyst. Contact the PCI Program Office for further information about possibilities.
  • Track funding and expenditures associated with business planning for the PCN.
  • Acquire financial and business management consulting services to assist in business plan development.
  • Obtain administrative and clerical services to support the development of the PCN's business plan.

Travel: Business Plan Development funds may be used to reimburse travel costs (related to business plan development) incurred by physician leads, project managers, or AHS members. PCNs are advised that travel compensation and other payment policies established during PCN development will likely be adopted for PCN operations. The expectations established certainly will carry over from the project to PCN operations. To avoid accounting costs (assume accounting costs of at least $5 for each line item entry, more if project costing is required) associated with minimal amounts claimed for travel, PCNs are encouraged to limit reimbursement to non-local travel, and if possible, to establish that “gas money” will be covered as part of the reimbursement for time claimed and is not to be claimed separately.

Communications: Business Plan Development funds may be used for expenses incurred in promoting or communicating business plan development (including website development, although websites are not usually a priority until after a PCN is operational). Costs associated with community consultation should be included in this category, but do not include physician payments or venue & catering expenses.

Venue & Catering: In cases where suitable AHS rooms and facilities are not available, Business Plan Development funds may be used to secure a meeting facility. A reasonable portion of Business Plan Development funds may be used for catering. Several PCNs have advised that attendance improves if food is served.

Legal: Legal services required for PCN formation include:

  • Hiring a lawyer to review the legal agreements of the PCN (Note: Individual legal advice sought by physicians is not eligible for funding through PCNs.)
  • Forming the physician Non-Profit Corporation (NPC
  • Forming a Joint Venture (JV) between the physician NPC and AHS
  • If Legal Model #2 is followed, forming a network non-profit corporation between the physician NPC and the AHS

There is no separate category for contingency in the project plan budget. PCNs are advised to consider uncertainty when developing estimates for each category.

Note that any funding remaining at the conclusion of transition (or if business planning is discontinued at any earlier stage), must be returned to the PCI Program Office within 90 days.