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State of Washington Department of Labor and Industries State of Washington Department of Labor and Industries Centers of Occupation Health and Education Occupational Health Management System (OHMS) Feasibility Study March 5, 2012 FINAL (Version 4.0) Washington Department of Labor & Industries Occupation Health Management System (OHMS) Feasibility Study Status: FINAL Date: March 5, 2012 Document Control This document represents the feasibility study analysis of the information system required to support the Department of Labor and Industries (L&I) Centers of Occupational Health and Education (COHE) as part of the state Workers’ Compensation insurance reform. The study complies with the state Office of the Chief Information Officer (OCIO) requirement for a feasibility study for level 3 projects. Version Date Description/Changes 1.0 1/20/2012 Initial working draft of chapters I–V and initial appendices for review and comment. Preliminary, NOT EDITED version. 2.0 2/7/2012 Incorporated comments on version 1.0 draft. Updated Work Breakdown Structure. Added new chapters VI–X, XIII. Added new appendices for Vendor Survey, Washington HIE, and Risk Factor Analysis. Preliminary, NOT EDITED version. 3.0 2/20/2012 Incorporated comments on version 1.0 draft. Updated Alternatives Comparison chapter. Updated Major Alternatives Considered chapter. Added Estimated Timeframe and Work Plan chapter. Added Cost-Benefit Analysis chapter. Full Draft. EDITED, except Chapter XII – Cost Benefit Analysis 4.0 3/5/2012 Incorporated comments from version 3.0 draft. Incorporated Executive Summary. Incorporated Alternatives vs. Scope Analysis Appendix. The anticipated audience for this report includes L&I, the OCIO, the Technology Advisory Board, and other interested stakeholders. 4016.001\OHMS Feasibility Study\4.0 i FINAL sooscreekconsulting.com 3/5/2012 Washington Department of Labor & Industries Occupation Health Management System (OHMS) Feasibility Study TABLE OF CONTENTS Page I. Executive Summary .................................................. 1 A. Background ............................................................................... 1 B. Vision and Goals ....................................................................... 2 C. Current Situation ...................................................................... 3 D. Impacts and Organizational Effects .......................................... 3 E. Major Alternatives Considered .................................................. 4 F. Proposed Solution ..................................................................... 5 G. Estimated Time Frame and Work Plan ...................................... 6 H. Cost-Benefit Analysis ................................................................ 7 I. Risk Assessment ....................................................................... 8 II. Background ............................................................... 1 A. COHE Program Definition .......................................................... 1 B. Emerging Best Practices ........................................................... 4 C. Workers’ Compensation Legislative Directives .......................... 4 D. Program Research .................................................................... 5 E. Study Scope and Objectives ...................................................... 6 F. Document Organization ............................................................ 7 III. Goals and Objectives ................................................. 8 A. Vision ........................................................................................ 8 B. Customers ................................................................................. 9 C. Business Service Strategy ....................................................... 10 D. Business Service Goals ........................................................... 11 E. Challenges and Constraints ..................................................... 14 IV. Current Situation .................................................... 16 A. Organization Structure ........................................................... 16 B. Business Operations ............................................................... 16 C. Information Technology Environment ..................................... 21 V. Impacts .................................................................. 27 A. Business Impacts .................................................................... 27 B. Information Services .............................................................. 28 C. Project or Initiative Impacts ................................................... 29 VI. Organizational Effects ............................................. 31 A. COHEs ..................................................................................... 31 B. Health Services Analysis ......................................................... 32 4016.001\OHMS Feasibility Study\4.0 ii FINAL sooscreekconsulting.com 3/5/2012 Washington Department of Labor & Industries Occupation Health Management System (OHMS) Feasibility Study C. Customers ............................................................................... 33 D. Information Services .............................................................. 34 VII. Major Alternatives Considered ................................ 37 A. Strategic Requirements .......................................................... 37 B. Alternative 1 – Internal Development ..................................... 38 C. Alternative 2 – Internal Development/EMR Integration ......... 46 D. Alternative 3 – External Product Integrator ............................ 47 E. Alternative 4 – External Product Integrator/EMR Integration 54 F. Other Alternatives Considered ................................................ 56 VIII. Alternatives Comparison ......................................... 58 A. Comparison Summary ............................................................. 58 B. Functional Comparison ........................................................... 59 C. Technical Comparison ............................................................. 60 D. Schedule Comparison .............................................................. 60 E. Cost Comparison ..................................................................... 60 F. Benefits Comparison ............................................................... 61 G. Risk Comparison ..................................................................... 61 H. Alternatives versus Scope Analysis ......................................... 63 IX. Proposed Solution ................................................... 64 A. Business Perspective .............................................................. 64 B. Technical Design ..................................................................... 68 X. Conformity with Agency IT Portfolio ....................... 86 A. Agency Strategic Plan Conformity ........................................... 86 B. Agency IT Portfolio Conformity ............................................... 88 C. Agency Technology Vision Conformity .................................... 88 XI. Project Management and Organization ................... 89 A. Project Governance Structure ................................................. 89 B. Project Management Structure ............................................... 93 C. Stakeholder Management Structure ........................................ 95 XII. Estimated Timeframe and Work Plan ...................... 97 A. Project Approach .................................................................... 97 B. Work Plan and Schedule ....................................................... 108 XIII. Cost-Benefit Analysis ............................................ 110 A. Methodology ......................................................................... 110 B. Cost Benefit Analysis ............................................................ 114 C. Cost Calculations and Assumptions ....................................... 114 4016.001\OHMS Feasibility Study\4.0 iii FINAL sooscreekconsulting.com 3/5/2012 Washington Department of Labor & Industries Occupation Health Management System (OHMS) Feasibility Study D. Benefit Analysis .................................................................... 119 E. Key Benefits .......................................................................... 123 XIV. Risk Management .................................................. 134 A. Risk and Risk Management Strategies .................................. 134 B. Project Oversight .................................................................. 137 Appendix A - Glossary Appendix B – Project Library Index Appendix C – Project Participants Appendix D – Information Systems List Appendix E – COHE Research Study Appendix F – Work Breakdown Structure Appendix G – Health Information Exchange Summary Appendix H – Vendor Survey Appendix I – Cost-Benefit Spreadsheets Appendix J – Risk Factor Analysis Appendix K – Project Schedule Appendix L – Alternatives vs Scope Analysis 4016.001\OHMS Feasibility Study\4.0 iv FINAL sooscreekconsulting.com 3/5/2012 Washington Department of Labor & Industries Occupation Health Management System (OHMS) Feasibility Study I. EXECUTIVE SUMMARY The purpose of the Occupational Health Management System (OHMS) Feasibility Study is to explore technology alternatives to meet the needs of the Washington State Department of Labor & Industries’ (L&I’s) Centers of Occupational Health and Education (COHE) best practice programs. The OHMS project
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