Case Study: Pareto Solutions achieves accurate, risk‑balanced budget projections with Palisade @RISK

Pareto Solutions - Customer Case Study

Pareto Solutions, led by Dr. Anthony Broskowski, helps state and local governments plan the privatization of mental health and child welfare services — specifically the hard question of how much to pay private vendors under prepaid allotment systems. Facing wide uncertainty (population trends, case mix, entry rates, lengths of stay, unit costs, etc.), Pareto Solutions turned to Palisade’s @RISK to produce realistic budget projections and to illustrate the “risk‑reward corridor” governments and vendors must share.

Using Palisade’s @RISK, Pareto builds large Monte Carlo simulation models (one county-by-county mental health projection incorporated roughly 1,000 variables) to test scenarios, set fair prepaid rates, and design risk‑sharing mechanisms such as profit repayment triggers and stop‑loss provisions. @RISK made the tradeoffs visible, helped determine reasonable payment ranges (e.g., vendor retention within about ±15% of expected costs in the D.C. foster‑care work), and has become Pareto Solutions’ trusted tool for over a decade — enabling clearer budgeting decisions and easier client training on risk sharing.

Pareto Solutions

Anthony Broskowski

Pareto Solutions