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CompleteSource Slides. November 18, 2010. CompleteSource™ Rebate Overview. Augments and supports other USD agreements. Protects at risk business - provides incentives for growth Goal is to apply to full portfolio of USD products.
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CompleteSource Slides November 18, 2010
CompleteSource™ Rebate Overview • Augments and supports other USD agreements. • Protects at risk business - provides incentives for growth • Goal is to apply to full portfolio of USD products. • Rebates earned when account meets or exceeds target thresholds. • Baseline purchases set from previous 12 month's sales. • Adjustable baseline in years two and beyond • Quarterly rebate payment. • Typically uncapped at top tier. • Qualifying purchases net of returns, discounts, rebates & allowances. • Warranties and capital equipment don't count as qualifying purchases. • Rebate paid within 45 days of period end. • Rebates not paid/applied to account balance if account is delinquent.
Rebate on Incremental Purchases of All Products Growth Incentive Rebate USD will pay Account a rebate in the amount equal to 5%, 7%, 9%, 11% (as described below) of the incremental purchase volume of all USD product business during each Measurement Period. Year 1* :Revenue Growth Baseline = $4,500,000 Tier 1: Quarterly USD revenue = $1,112,500 to $1,237,499 achieves 5% Rebate on Growth dollars Tier 2: Quarterly USD revenue = $1,237,500 to $1,362,499 achieves 7% Rebate on Growth dollars Tier 3: Quarterly USD revenue = $1,362,500 to $1,487,499 achieves 9% Rebate on Growth dollars Tier 4: Quarterly USD revenue = $1,487,500 to uncapped achieves 11% Rebate on Growth dollars Year 2 Baseline Targets will be based on Year 1 Actual Performance Example From Ardent Healthcare - Includes four hospitals in OK and NM.
Rebate in Each Product Category w/Bonus for Attainment of All Targets - Standard % Growth Incentive Rebate USD will pay Account a rebate in the amount equal to 4%, 8% or 10% (as described below) of the total purchase volume of all USD product business during each Measurement Period. • Achieving growth rate in all three targets earns an additional 2% rebate on growth dollars. CRM/EP/IBI/ESI Quarterly Revenue Growth Baseline = $1,416,314 Tier 1: USD revenue = $1,699,577to $2,039,491 achieves 4% Rebate Tier 2: USD revenue = $2,039,492 to $2,447,389 achieves 8% Rebate Tier 3: USD revenue = $2,447,390 to uncapped achieves 10% Rebate CD Quarterly Revenue Growth Baseline = $181,020 Tier 1: USD revenue = $217,224to $260,668 achieves 4% Rebate Tier 2: USD revenue = $260,669 to $312,802 achieves 8% Rebate Tier 3: USD revenue = $312,803 to uncapped achieves 10% Rebate CSD Quarterly Revenue Growth Baseline = $83,314 Tier 1: USD revenue = $99,977to $119,971 achieves 4% Rebate Tier 2: USD revenue = $119,972 to $143,965 achieves 8% Rebate Tier 3: USD revenue = $143,966 to uncapped achieves 10% Rebate *Year 2 Baselines will be based on Year 1 Actual Sales Example from St. David's Partnership - Includes six hospitals in Austin
Rebate in Each Product Category w/Bonus for Attainment of All Targets - Varied % Growth Incentive Rebate USD will pay Account a rebate in the amounts described below of the incremental purchase volume of all USD product business during each Measurement Period. • Additionally, if Account achieves growth rate in both targets USD will remit an additional • rebate of 2% • . CRM, EP/IBI/ESI Revenue Growth Baseline = $1,146,814 Tier 1: USD revenue = $1,146,815 to uncapped achieves 5% Rebate on Growth dollars CSD Revenue Growth Baseline = $166,267 Tier 1: USD revenue = $190,000 to $208,999 achieves 2% Rebate on Growth dollars Tier 2: USD revenue = $209,000 to $228,899 achieves 4% Rebate on Growth dollars Tier 3: USD revenue = $228,900 to uncapped achieves 6% Rebate on Growth dollars Example From Vanderbilt University Medical Center I
Rebate in Limited Product Categories w/Bonus for Attainment of All Targets Growth Incentive Rebate USD will pay Account a rebate in the amount equal to 3%, 4% or 5% (as described below) of the purchase volume of all USD product business during each Measurement Period. Year 1* : CRM/AF Quarterly Revenue Growth Baseline = $285,481 Tier 1: USD revenue = $400,000 to $474,999 achieves 3% Rebate Tier 2: USD revenue = $475,000 to $549,999 achieves 4% Rebate Tier 3: USD revenue = $550,000 to uncapped achieves 5% Rebate Additional AF Bonus Rebate: If Account achieves any of the above tiers they are eligible for the below AF based Bonus Rebates: Tier 1: $80,000-$99,999 in AF only products achieve an additional 6% on AF dollars Tier 2: $100,000 and above in AF only products achieves an additional 7% on AF dollars Example From Genesis Healthcare - Includes two hospitals in OH