Sounds good….$125 every 2 months in NJ and has become a real problem with
some clients so I have started waiving the fees as they have threatened to
leave.
On Tue, Oct 3, 2023 at 6:33 PM Chen Xie <chen@thekey.com> wrote:
> Hi guys --- let's wait for Audra and Tiffany to share an official
> spreadsheet tomorrow. Waiving the RN fee is immaterial IMO ($100 a
> quarter?) and wouldn't qualify as this, more like ordinary course of
> business. Yes, outcome is important on anything that we activated.
>
> On Tue, Oct 3, 2023 at 6:32 PM Kimberly Guerci <kguerci@thekey.com> wrote:
>
>> We have a handful that we have already made these offers to so I will
>> have the teams get the spreadsheets started and tagged once we have them.
>> Do you want us to add the outcome so we can track if it is working or not?
>> Also, if we are waiving the RN fee to keep someone, do we add those as well?
>>
>>
>>
>> On Tue, Oct 3, 2023, 5:35 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/>
>>>
>>
>
> --
>
>
> *Chen Xie*CSO |
> *TheKey*650-208-2390
> [image: TheKey] <https://homecareassistance.com/>
>