Hi Everyone,
Please find the Spreadsheet HERE
<https://docs.google.com/spreadsheets/d/1GNZ5sggx371MIbVN3UpWdq0igL66RDXf_uVdhVhQf3c/edit?usp=sharing>
for
you can use for this pilot. @Chen Xie <chen@thekey.com> I hid your
column on H.
We have also added the following tag into your URL's: *Client Retention
Pilot*
Tiffany Silton
Director, Division Operations
* Please note my email has changed: *
tsilton@thekey.com <https://brand.thekey.com/esg/tsilton@thekey.com>
(760) 889-2188
TheKey.com <https://www.thekey.com/>
[image: TheKey] <https://homecareassistance.com/>
On Tue, Oct 3, 2023 at 2:35 PM Chen Xie <chen@thekey.com> wrote:
> 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 Client Discharges in the Post-Period as a proportion of
> eligible census should decline.
>
> If we are successful, we should start to see material improvements in our
> tracked numbers over the course of the next 3-5 months, which will help
> ensure the continuation of this authority and potentially allow you to
> extend it to your other markets and to extend to other regional directors.
>
> I will provide your baseline client turnover stats and the calculation
> methodology shortly.
>
> Participating Areas:
> New Jersey--- Kim Guerci
> Mid-Atlantic --- Beth Ann Rosario
> Greater SD --- Araceli Gutierrez
> Montreal --- Timothy Thomas
>
> Common Q&A:
> Tim has experience extending concessions to clients while also requiring
> them to remain on services for a fixed amount of time otherwise they would
> owe it back. Things like that can be explored but are not required. Again,
> the goal is to increase the revenue and profitability at your region, so
> things like this that give you greater assurances will only benefit you.
>
> This authority cannot be delegated to any decision makers beyond the RD
> and one designated Regional Manager. Every single case is assumed to have
> passed your review and been done with your approval.
>
>
>
> --
>
>
> *Chen Xie*CSO |
> *TheKey*650-208-2390
> [image: TheKey] <https://homecareassistance.com/>
>