--0000000000008085260606d6aa4b Content-Type: text/plain; charset="UTF-8" All, see the detailed program notes below. Purpose: To identify areas of opportunities to prevent long-term Tier 1/Elephant clients from discharging with TheKey using available economic incentives/inducements. Mechanism: Regional Directors and a select Regional Manager in participating regions will be authorized to provide special inducements to clients who have communicated a desire to leave service, an expected plan to leave service in the future, or who are known to have left service for a non-mortality reason. The mechanism can only be used on clients who have been on service with TheKey for at least one month, though ideally we want to be more selective towards those who have been on service at least three months. Inducements can include price reductions on the hourly rate, avoidance of a future rate increase, the assignment of a favored caregiver for non-billed OT, or other economic benefits to the client. Provided that the caregiver margin remains 38% or greater (10% below our current average of 48%), we should seek to retain the client. Expected Outcome / Rationale If we can target our clients effectively who have already established themselves in the top 3 deciles of our Client Lifetime Value, incremental margin generated by these clients (who might otherwise leave for a cost efficient alternative) should be accretive to the net topline revenue and net dollar EBITDA of our business. Because we have to be very selective and only target situations in which the client would otherwise be lost, authority will be delegated only to our most senior client professionals in the field. Tracking / Authorization No special incentives to track but only the RD and RM Client Success will be authorized to approve the client concessions. Tiffany and Audra will ensure a ClearCare Tag is created to note impacted clients. Clients with an approved concession should be tracked in a spreadsheet to be circulated by Audra and Tiffany. The following columns are required: - Client Name - Start of Care Date - Weekly Hours Billing - Reason for Client's Intended Departure - Date of Concession - Amount of Concession - Expected Caregiver Margin After Concession - Realized Caregiver Margin After Concession (Tiffany/Audra this is to be left blank and I will return to validate this) - Client Still on Service (Yes/No) - Detailed Notes on Client Negotiation and Nature of Concession Because these clients still affect your bottom line, you are encouraged to make as few concessions as possible, but authorized on any that still retain a 38%+ caregiver margin. We will track the net discharges of long-term clients in the pre-period (control) and in the post-period. Non-Mortality Client Discharges in the Pre-Period (as a proportion of the eligible census) should equal Non-Mortality Client Discharges + Clients with Concession (as a proportion of the eligible census) in the post period. Total % of Non-Mortality