Cost quality and shared services
Download
1 / 12

Cost, Quality and Shared Services - PowerPoint PPT Presentation


  • 110 Views
  • Updated On :

Cost, Quality and Shared Services. Anne Mitchell. The Cost-Quality Gap. Higher quality ECE costs more than most families can afford Market-based ECE encourages low tuition fees and discourages investments in quality Many ECE expenses are fixed (e.g., by regulation or industry practices). .

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Cost, Quality and Shared Services' - dempster


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
Cost quality and shared services l.jpg

Cost, Quality and Shared Services

Anne Mitchell


The cost quality gap l.jpg
The Cost-Quality Gap

Higher quality ECE costs more than most families can afford

Market-based ECE encourages low tuition fees and discourages investments in quality

Many ECE expenses are fixed (e.g., by regulation or industry practices).


Can shared services help close the gap l.jpg
Can shared services help close the gap?

Mathematical models of ECE center operations

Demonstrate potential savings from sharing services

Savings can be used to close the gap and improve quality


An average center in the us l.jpg
An ‘average’ center in the US

  • Serving the needs of its community

  • 5 classrooms/75 children/12 teachers

    • 1 infant room

    • 1 toddler room

    • 3 preschool rooms

  • Acceptable level of quality

    • Meets state regs for staff qualifications

    • Meets NAEYC minimums for ratios/group sizes


A better center in the us l.jpg
A ‘better’ center in the US

  • Same size

  • 5 classrooms/75 children/12 teachers

    • 1 infant room

    • 1 toddler room

    • 3 preschool rooms

  • Better level of quality

    • ½ the teachers have AAs

    • Wages are 5% better than average

    • Additional revenue from quality awards


So how do they fare l.jpg
So, how do they fare?

The acceptable center:

$570,910 Expense

$570,608 Revenue

$302 Annual Loss

The better center:

$602,785 Expense

$581,809 Revenue

$20,976 Annual Loss


What if they share purchasing l.jpg
What if they share PURCHASING?

The acceptable center has a surplus of -- $2,968

The better center has reduced its loss to -- $17,706


What if they also share office staff l.jpg
What if they also share OFFICE STAFF?

The acceptable center has larger surplus -- $12,315

The better center has further reduced its loss -- $7,349


What if they also share director l.jpg
What if they also share DIRECTOR?

The acceptable center has even more surplus -- $43,296

AND

The better center finally breaks even and has a surplus! -- $24,776



Other benefits of shared services l.jpg
Other benefits of Shared Services?

  • Access to staff like nurses, mental health consultants

  • Direct support to improve the program, like a mentor teacher, quality coach

  • Ability to apply for grants to benefit the center (and others in the Alliance)


For more info l.jpg
For more info…

Anne Mitchell

anne@earlychildhoodfinance.org