Transcript
Samantha Bouchard (00:00) thanks, Sam… drake. What’s up? I finally don’t sound like a monster. I.
Andrew Harnish (00:07) know, are you?
Jake Shubert (00:08) Feeling actually like 100 percent now?
Samantha Bouchard (00:11) Yes, thank God, sunshine, and some antibiotics will do that, you know?
Jake Shubert (00:15) Yeah. Who’s to say? Which one’s more important?
Samantha Bouchard (00:19) Hey, I might have to hop off this like five to 10 minutes early. I don’t know that we’ll take the whole time, but just you.
Jake Shubert (00:26) Know, no, I appreciate that. That should be fine. Yeah, cool. So, what were the Orlando highlights? I’m.
Samantha Bouchard (00:35) so jealous that your sister lives there and you get to go. I like… loved disney. I’m like shocked. Yeah, like, I knew I would like it but like it’s so clean?
Jake Shubert (00:49) Like.
Samantha Bouchard (00:50) Magic kingdom, like, it’s so funny, Jake, like I’m in the rides and like using the app and stuff, and I’m just like the technology.
Nicole Campbell (00:58) And.
Samantha Bouchard (00:58) I’m like looking at all these rides. I’m like who builds these, who services them? Yeah. Who designs them? Like it’s incredible.
Jake Shubert (01:07) No, it really is. Was there a favorite ride for like you or your kids or anything?
Samantha Bouchard (01:15) We liked my daughter loved like the little mermaid ride, but she loved the roller coasters, like she was on the mine train roller coaster and I couldn’t believe it. Yeah, she was like, it’s all smiles. I thought she would have been petrified but she’s a, yeah, crazy girl.
Jake Shubert (01:34) Hey, Andrew. Hey, Tom. How are you guys doing?
Samantha Bouchard (01:37) Nope. Tom’s still connecting.
Jake Shubert (01:38) Andrew, I think you might be on.
Andrew Harnish (01:39) Mute, hey, Jake. Yeah. Hey, Samantha. Welcome back. Thank.
Samantha Bouchard (01:43) You. I was just telling Jake a little bit about the disney trip. My four and a half year old was like a roller coaster. I don’t know. Like she’s apparently likes a thrill because she loved the roller coasters the most.
Andrew Harnish (01:58) That’s awesome. That is awesome. Is that her first time at disney?
Samantha Bouchard (02:04) Yes, she loved it. She wore her princess dress to dinner and one of the hosts at the restaurant we went to like bowed to her and was like your highness?
Andrew Harnish (02:14) Wow her.
Samantha Bouchard (02:15) Smile. I wish I could have like bottled it up and kept.
Andrew Harnish (02:19) It forever. Oh, yeah, of course. It was so sweet.
Samantha Bouchard (02:21) You.
Andrew Harnish (02:21) guys get the memories just as much as them, you know, exactly, we took my daughter when she was three and it was like, you know, she’s probably not going to remember this but like we have everything and it was a very cool trip very much. You get why disney, like why it’s disney, why there’s disney crazies, you know, all that, you know, if I lived in Florida, I’d certainly have a season to pass. Yeah.
Samantha Bouchard (02:44) I really do, I know I was just telling that to Jake, like I obviously went when I was 15 or 10 or whatever, but going as an adult, you just have this new perspective and I thought they were going to be too young two and a half and four and a half. And I’m so glad that I went because even my two and a half year old loved everything like he was locked in on every ride. Yeah, it was so cute.
Andrew Harnish (03:07) Very cool.
Jake Shubert (03:08) I’m just impressed by the roller coasters. I can’t do roller. Coasters. I’m like a baby when it comes to roller. Coasters.
Samantha Bouchard (03:15) I have to send you the videos, Jake, she’s literally, like I’m.
Andrew Harnish (03:19) an adrenaline junkie for sure. We live, where I live. I’m near, dorney park. Oh, yeah, which is a pretty, you know, dorney park. I.
Nicole Campbell (03:28) Grew up on the other side of allentown in New Jersey. Oh.
Andrew Harnish (03:32) Yeah, dorney.
Nicole Campbell (03:34) Hershey. Six flags oh.
Andrew Harnish (03:36) Yeah. So, I grew up in south jersey. So I grew up going to six flags, but now I live outside like trexler town. So, west of dorney park, down to dorney park. So, you know, our corporate office is, you know, we’re in Easton. So we’re like 10 minutes from phillipsburg. Yeah, right over the.
Nicole Campbell (03:50) Bridge. Oh, yeah. I know exactly where you guys are. Yeah. That one ride at dorney that, oh, my God, the roller coaster, like with the big drop, it’s like the main one. Oh.
Andrew Harnish (03:58) Yeah. Shoot, I forget the name of it. It’s the best they’ve actually built like one or two new roller coasters just in the past like two years. So, yeah, it’s good to have season passes there, bring my kids there, you know, the nephews. Yeah, it’s good times.
Glenda Mack (04:12) Bill, the best roller coaster anywhere in the states is the beast at kings island. If you’ve never rode the beast, you just don’t know.
Nicole Campbell (04:18) Wow. That’s good too. My cousins live right near kings island, that’s in Ohio, and they have the season passes for that. I’m looking.
Samantha Bouchard (04:28) This up right now, the beast is insane. Yeah.
Jake Shubert (04:32) Anything called the beast, the cyclone, whatever. I have no idea.
Glenda Mack (04:37) It’s one of the few remaining wooden roller coasters in the country. Oh, that’s cool. And it has that feel to it, that bouncy feel that wooden roller coasters give you.
Andrew Harnish (04:45) Yeah, wow, may kill me at any second.
Samantha Bouchard (04:49) Well,
Nicole Campbell (04:50) the one in the six flags in jersey that Andrew and I clearly grew up going to, but there’s a roller coaster. I think they just took it down sadly, but it was called kingda, Ka, that’s.
Andrew Harnish (04:59) what I was going to reference, actually, yes, that was ridiculous. It was.
Nicole Campbell (05:04) so ridiculous. Glenda. I don’t know if you heard about this when it started. I mean, it went up years ago, but they couldn’t release it to the public because the dummies kept losing their heads and arms.
Samantha Bouchard (05:14) People when.
Nicole Campbell (05:16) it first was released, it was so much in velocity going up. People left with dislocated shoulders. Oh, my word. They had to make adjustments, but it was a great roller coaster.
Jake Shubert (05:26) Yeah. If.
Glenda Mack (05:27) you kept your arms and legs and head, it’s.
Jake Shubert (05:29) great. Minimal.
Andrew Harnish (05:31) Restraint. It was just like a small thing that went over the center of your lap, not over your whole knees, not around your shoulders. Like I felt like I was going to fall out of the thing. Yeah, it was crazy.
Nicole Campbell (05:40) And sometimes it couldn’t make it through the loop. So it would roll back down to the start and shoot you back up it again.
Glenda Mack (05:48) What?
Samantha Bouchard (05:49) About action park. This thing closed in like the nineties. Did you guys ever go there? That was in New Jersey, there’s a documentary on it. You have to watch it. It was like people died there. It was like this crazy park, they would create these rides and like not do like any proper testing, put it on your documentary list.
Jake Shubert (06:12) I will.
Andrew Harnish (06:12) I will.
Glenda Mack (06:13) Action park.
Samantha Bouchard (06:14) Yes, it’s a really good documentary. We.
Tom Orlandi (06:17) went down basically the slide right down a, you sit on a cart and wheels and you just go down the chute, all the way down the mountain. My friend fell off of it and half his back was ripped off. Oh,
Jake Shubert (06:32) my God. Wait.
Samantha Bouchard (06:33) Tom, you went.
Tom Orlandi (06:36) Yeah. I was there. Why are you so close to it?
Samantha Bouchard (06:38) Oh, my God. I’ve always wanted to meet someone that actually went to action park.
Jake Shubert (06:45) Oh, my God. I’m sure. Tom can’t say more. It’s probably a class action lawsuit. Yeah.
Nicole Campbell (06:50) I’m like if we ever do a,
Tom Orlandi (06:53) oh,
Nicole Campbell (06:53) yeah, I’m like now, I know where if we ever do an onsite with you all in the future. Now, I know where we’re taking you. We have to go. We’ll talk about medallion while we’re on a roller coaster, trying to scream to you about future. Yeah.
Jake Shubert (07:06) That’s a great place. If you want me to not show up for it. I’m pretty sure I would have the same roller coaster tolerance as Sam’s four year old. I would have been riding the same exact rides as her. I’m sure. I don’t.
Samantha Bouchard (07:18) know, Jake, she might be surpassed you. We’ll.
Jake Shubert (07:20) see, I mean, actually that’s probably true.
Jake Shubert (07:22) I’m probably not even at that level. Well, this is pretty incredible stuff. I do want to watch the documentary but we can jump into things for today’s. Call. I know we set up about 45 minutes for today. Does that work for the three of you?
Glenda Mack (07:40) I can do 45 minutes. If we can be shorter. That’d be great because we’ve got a pay loss implementation going on right now and it’s requiring a lot of attention.
Jake Shubert (07:48) Yeah. No problem at all. So we can try to be a little bit quick. What I’ll probably do is like agenda wise. The main thing for our call today is to review pricing. I have some slides before pricing that we want to share just to talk about kind of like the value drivers and how we’re thinking about, you know, our partnership just to make sure we’re aligned on those. But I can go through this a little bit quicker. So we have more time to go through the actual pricing itself.
Glenda Mack (08:10) And then we.
Jake Shubert (08:11) can say the last five or so minutes, not all the way to the 45 but the last five or so minutes before you guys have to drop just to chat through next steps, evaluation criteria, all that kind of fun stuff. Does that sound like a fair plan? Sure. Cool. Well, it’s been about a week since we last chatted. I know you guys are having some internal chats and also external talks with, you know, other vendors that you guys are possibly considering. How have those dialogues gone over the last week or so?
Glenda Mack (08:36) Well, we’ve made some decisions on our revenue cycle. So we will go to waystar for our revenue cycle. That’s not public knowledge. So please, that’s us talking because it’s important for you to know that, but we will go to RCN waystar, probably fourth quarter sometime. We’ll make the move, okay?
Jake Shubert (08:58) That makes sense. And then with that waystar route, what we previously talked about is like that would be the avenue where medallion would likely make sense as sort of that bolt on and integration with waystar. Obviously, we have to figure out mutual beneficial pricing and terms and all that kind of stuff. But is that still how you’re thinking about like where medallion would fit in? Yes. Okay. Cool. Well, let’s jump into things here for today’s. Call and I can share my screen. Okay. Can you guys see the screen? Okay. Yes. All right. Perfect. Well, like I said, I will try to go through things relatively quickly so we can spend more time on the pricing component. What I built out on this first slide was just kind of like an overall summary of our conversations thus far. And then how medallion is directly addressing the challenges that three of you have shared transparently since our conversation. So again, I don’t need to go, you know, I won’t bore you guys with reading all this off individually. But from what we’ve really shared like we kind of boiled it down to the five main bullet points here around medallion, transforming and scaling for growth which Glenda you have shared, not only moving into new states but provider growth, opening new clinics, and how that sort of has a scale in conjunction with credentialing. Obviously, the enrollment turnaround time, speeding that up, then also speeding up the time to get communication of par status. When that par status is achieved, provider turnover, providers right now sometimes leave before joining the organization because of how long it takes to get them credentialed and ready to see patients. So reducing that provider turnover, all the manual processes involved with doing this work off of spreadsheets today, and the manual tracking that relates to that, as well as the overall it modernization initiatives. And a core piece of that would be the interoperability right? Which is the ability to integrate with paylocity, and also an RCM solution such as awaystar.
Samantha Bouchard (10:42) I’m happy.
Glenda Mack (10:43) To so with that, I’m sorry, with that integration. One of the questions that came up today earlier today, is medallion able to exchange documents with awaystar? And with paylocity… meaning send documents over to be uploaded into paylocity and vice versa. Yeah.
Jake Shubert (11:02) So, so both sending documents out but also receiving documents from those systems. Yes. Yeah, yeah. Got it. And I imagine the kind of documents if I’m thinking about an RCM workflow would probably be like that. That letter, of par status. Things like that would be what you would want attached. I’d imagine. Okay. Yeah, Sam, do you want to, do you want to talk about that at all?
Jake Shubert (11:20) I mean, our integration, I guess before I jump into that, have you guys looked at our API docs I sent over last week?
Glenda Mack (11:27) I haven’t and I honestly did not get them to Mike. I’ve been in paylocity, hell. So, yeah, no.
Jake Shubert (11:33) No worries at all. We can certainly talk through what the integrations look like. But Sam, to my understanding, we have supported sort of documentation exchanges before, but Sam, not sure if you have any color on that, yeah.
Samantha Bouchard (11:44) No, exactly. I can get you some more information on that, Glenda. Okay. Yeah, because.
Glenda Mack (11:50) That the other providers we’ve looked at that’s been one of their limitations is the ability to exchange documents between systems going both directions.
Jake Shubert (11:59) Yep. Yeah. We can pull more information on that, but I don’t think that’ll be a limiting factor here. We have a pretty robust API, but we can get you more information there.
Tom Orlandi (12:05) Okay, cool.
Jake Shubert (12:07) Awesome. Well, that is sort of the summary here for this slide. Like I said, I can share this over email just so you guys have this.
Jake Shubert (12:13) But really what I wanted to ask here is like, are these sort of the right core challenges we should be talking about addressing? Is there anything that isn’t included here that you guys want to make sure we’re talking about speaking to and really addressing where medallion fits in.
Glenda Mack (12:26) These are hitting my high points, but I want Andrew and Tom to chip in because they’ve been doing it longer than me.
Andrew Harnish (12:35) Yeah, I think.
Tom Orlandi (12:36) Go ahead, Tom, for me. Most of that’s hitting the point really getting those providers enrolled quicker if there’s any way being automated to get the responses that’s what we’re missing half the time is constantly phone calls and so forth. So, this is focusing on those types of things.
Andrew Harnish (12:58) Yeah, I would agree. I think the biggest piece will be the contracts with the providers and the payers. I’m running into some situations recently where, you know, it shows a network on our side. We’re dealing with a contract issue. In the meantime patients are getting billed out of network benefits and like kind of not knowing where the status is or not having, you know, a direct contact or point of like just resource or information on where those things are will be like extremely helpful like through the dashboards and things of that nature. Yep.
Jake Shubert (13:30) That’s super helpful. And obviously, you know, medallion, I’ll talk about this in a couple slides but from us, you’d be getting the par status in real time. We do all the automated payer follow ups, all that information. So, you know, we’re managing an end to get providers and network. And then obviously, that’s all being documented inside the platform as opposed to spreadsheets. So, oh, sorry.
Andrew Harnish (13:49) Andrew, can I ask one other question on that? So what if that situation came up? I’m wondering just where you guys are involved or versus this is handled by waystar. So let’s say your spreadsheet does show par and we have a claim and it gets reimbursed as added network rates. What happens there?
Jake Shubert (14:07) Yeah, Sam, you want to touch on that one?
Samantha Bouchard (14:09) Yeah, absolutely. So everything’s going to be tracked, Andrew directly in that payr line. So from like a appeal status, you’re going to have all that documentation in one place. Whereas today, you might kind of have to do some digging for it which can obviously like convolute the appeal process… so that you can like add notes in the line, you can download those documents if for some reason like you need support from medallion where, you know, potentially like, you know, you would have expected a certain location to be included. You can loop us into that as well. And like we can support, those conversations, but we’re just, we’re definitely going to like, yeah, track all that information, make it easy for you to appeal and then obviously support you if there’s you know, any type of modification needed to the enrollment application. Yeah, understood.
Tom Orlandi (15:06) And that’s the pieces that usually happens. It’s usually the therapist ends up moving it to a different location. We were not, we were never notified. And so the claims went out with the, you know, with the new address and we never had that location credentialed. So that’s usually the denials that’s where we start to have to identify and address. They won’t. It’s going to be still manual labor through that process. But, but yeah, We do.
Samantha Bouchard (15:30) Have the demographic updates that are available Tom like directly in our system. So as providers are moving to different locations, we’d really want medallion to be the source of truth because you can do all of those associations in our platform. And so once that association’s made, you can always add that additional location to the existing enrollment as well. And then on each individual payr line, we’re going to have an active status not just by payr but by location. And so that’s typically like when I know you’re talking about like sending over the document. But typically, what our clients connect to from an RCM perspective would be the status by location so that you’re kind of pulling that instant status. And if you needed the documentation, it’s going to be attached to each of those individual lines for like proof, right? Because if we got like a portal proof, it will just be a screenshot of the portal, but that’s what we would typically recommend that you connect to for those like release of claims purposes.
Andrew Harnish (16:31) Okay. Yep, great. Thank you. I’m not sure if.
Jake Shubert (16:33) You guys remember the demo that Sam did a few weeks ago, but remember to request like a new enrollment is just kind of like three clicks of a button that you do in the platform. It’s the same thing with demographic updates. So you can just click request, demographic update, click the location, the provider, and then that processes, medallion handles the rest of the work to make that addition. So times like that might be relevant for you guys. Cool. Well, I’ll move along here to try to speed this up a little bit. So just want to talk quickly about resourcing impact. So I know that the team currently has about three full time employees, might have to be adding some folks as well to the team. If you guys were to do this in house to support your growth. Just wanted to call out that with medallion, we’d be looking at really half of an employee’s time. It wouldn’t be really like half of their full time job. This is how we sort of mark that we would want one person to be the medallion admin who is communicating directly with us and it would not be their full time role of working with medallion and want to take up their full day to day. But that’s what we would want is sort of like one admin who we could be communicating with who’s making the request on the platform and understands your strategic direction for credentialing. And.
Glenda Mack (17:36) that could feasibly be the half fte we have. And if they’re strong, so we wouldn’t necessarily need to sign an additional person.
Jake Shubert (17:43) Yep. That’s exactly, right. Exactly, right. Yep. Cool. I’m just in line with how you’re thinking about the resourcing impact. Glenda. Yes. Okay. Cool. And I would imagine with like the going rate of full time employees who manage credentialing. This is probably like six figures in savings. I would imagine for you guys to move to half of an employee. Yeah. Cool. Well, then this is the last slide before we jump into pricing. So I want to just share the comparison point between when rcms manage things in sort of an outsourced model versus medallions. So these are timelines we’ve taken across like, our 400 plus customers but then also just generally like industry standards. So I’ll walk through this in a little bit more detail. So the top row is what turnaround time comparisons look like for payer enrollment with RCM companies. The bottom line is what medallions look like. So typically with RCM organizations, it’s going to take between two weeks to a month to gather all the provider’s data and then translate that data into what’s needed for the enrollment applications, filling out the payer forms, filling out the applications, so that’s sort of the front end of the process is getting that data gathered and then ready to be submitted.
Jake Shubert (18:51) When RCM companies manage credentialing, average turnaround times are typically between 30 days. Those are for the government payers, you know, medicare and medicaid, that happen faster. And then up to 90 to 120 plus days for the commercial payers, is the average of what we see. And then because it is a little bit like a black box in terms of ownership with RCM companies, there are those par status delays in communication where your team might still need to be the ones calling payers or the follow ups to understand when providers are actually in network. If you don’t want delays for leaders in the field, knowing when providers are ready to see patients with medallion, it takes us about a week to gather provider data and then send those enrollments out the door. So initial savings up front in the process, our turnaround times, we looked at your exact payers that Tom you shared a while back. And for the government payers, we’re looking at around more of 10 to 15 days turnaround times and the commercial payers more in the 60 day range and some are faster. Our overall average across all payers in the country is 52 days, which is an industry leading average there. And as we talked about instantaneous par status. So the second that the provider is being par and we get that in the portal or we get the thumbs up from them via an email or a call that we make that has flowed through the platform immediately. And we send out the alerts to the provider, to your admin, to anyone else who you want to make sure those alerts come through. So just wanted to provide sort of the comparison point between RCM organizations and medallion in case that was helpful. Any thoughts or feedback here.
Jake Shubert (20:34) Cool. Well, I will jump into pricing then and I’ll try to go through. So we have enough time for questions and answers. So what I wanted to first review is the scope of work for pricing. Hopefully none of this will come as a surprise because it comes directly from the questionnaire that you guys filled out, which I also want to say, thank you to the whole team for filling out the questionnaire so quickly to let us have enough time on our side to work on things. So just to walk through this, you guys have about 541 current providers hiring about 75 over the next 12 months, takes us to 616 providers whose data medallion will be managing, doing ongoing monitoring for etc. Then in terms of paid enrollments, you guys provided a range of between 202 50 enrollments. So we went conservative in the middle with 225. Then for revalidation, same thing. You guys supplied a range of 100 to 125. So we just took the medallion there and went with 112. I wanted to provide this just so you have the framing for the actual like unit by unit pricing you’ll see on the next slide, but does this look right to you? Has anything changed since you guys provided the scoping inputs a few days ago?
Glenda Mack (21:40) It looks fine, cool. Tom.
Jake Shubert (21:43) Any feedback here? Does it look good to you as well? No, I’m good. Okay, great. So in terms of our pricing here’s, the proposal that we built out. And I wanted to call out a few different things that you’re going to see here in the proposal today. So the first is that our proposals are three year contracts which is an industry standard across healthcare for credentialing and also just a standard for us. Given the amount of resources we have dedicated to each account to manage your credentialing work end to end, you’re going to see slides two and three here or years two and three in the next slides in a second. But just to do a little bit of a spoiler alert, they’re all around the same general pricing range of sub £. The next thing I’ll call out is that all of our contracts contain what’s called SKU flexibility, which means that while you guys do commit to this level of spend upfront, you are not committing it for particular line items. So for example, if you guys end up doing more enrollments in year one than you guys have contracted for, you can pull spend from other SKUs, or from additional, the out years of the contract into year one. So you’re not paying for that out of pocket. The inverse is true too. If you guys do less enrollments or anything else that you guys forecast, you can roll over that delta and spend to the future years of the contracts. You have that to use as well. The idea there is that we know that credentialing is an inexact science. We want to give you guys as much flexibility as possible inside the bounds of the contract. Last thing I’ll call out here is as you can see in the discounted prices versus the unit prices, we did try to get really aggressive here. So what you’re seeing today is about a 41 percent discount from our list prices.
Glenda Mack (23:24) Given the.
Jake Shubert (23:25) opex reduction, elimination of claim denials, and resubmissions, the turnaround time, improvements, our interoperability, we definitely see a lot of strong value here, but would really love your honest feedback. So I’ll pause here. Curiously, Glenda, I’ll start with you for a little temperature check. How do you feel about where our pricing is falling here?
Glenda Mack (23:47) It’s high compared to what I’ve seen in other platforms. Okay? So it’s a little bit of a shocking number especially when you think about, you know, right now I’m spending approximately 160,000 dollars on three employees. Yep, it’s not obviously they’re certainly what things that will improve with this on the revenue side. So, I am not just thinking of cost at all, but it’s a high number comparatively. Yeah.
Jake Shubert (24:15) But that’s helpful feedback. And I guess like just in terms, of ballparks, like how much higher than expected are we sort of landing? I want to make sure are we like, in an area where we can try to work on the proposal and find a number that we find mutually beneficial or are we sort of like way out of bounds with where we’ve originally scoped? So.
Glenda Mack (24:34) The, so you’re what you’re saying here is year one is 185 584. But on a go forward basis, that 15,001 time fee isn’t there. So you’re looking at about 170 K over the course of a year. Yeah. Am I reading that correctly? Yeah, you’re reading that?
Jake Shubert (24:51) You’re reading that correctly? I can show you year twos and threes of the contract we built in some like you guys adding more providers. The numbers do come up in terms of the totals, but you guys will be hovering around the like 185 190 range. But we could also obviously tweak the numbers of quantities here as well.
Glenda Mack (25:09) Yeah. And I think that I think that why your numbers look a little bit lower to me is because some platforms offer, a flat monthly fee for some of these services. And so there’s not variability. It just is what it is, it’s, that monthly fee for some of the stuff and you’re offering on a per use basis. And I will just tell you per use contracts don’t really work well for us. Generally, we’ve been burned on a few of them at this point. And so that’s a big concern looking at this.
Jake Shubert (25:43) It just it.
Glenda Mack (25:44) Just is, I mean, Andrew and Tom, you correct me if I’m wrong, but with our RCM last year, we had to go back to them and basically beat them over the head because they were charging us per use fees and it was astronomical going up every week and we’ve had that happen with a couple of other contracted entities. And so I do have anxiety about a per use fee on some of these things. I’d rather see a flat fee situation… where it’s a minimum monthly kind of thing, a minimum monthly spend type of thing. So we have predictability, but I don’t know how y’all feel about that. I don’t know how you’re willing to set up your pricing, yeah. And.
Nicole Campbell (26:25) I can kind of jump in here and be as transparent as possible like we want. We don’t want pricing to be the reason that we don’t find a partnership here. But in terms of what we can be flexible and what we can’t unfortunately, we can’t change the model of how we price, but there is ability for us to be more conservative in terms of whether it’s the number that we’re because what we don’t want is that you right over commit to spend and you don’t use it. There’s a much better model where we’d be a little bit more conservative. And then, hey, okay, great. If after year two, you are having like a very, your projections for growth, you feel much more comfortable with in terms of investing with us, then we revisit and maybe make an adjustment to the contract then, and then it makes sure that you’re not feeling like you’ve overspent inside of here that’s something that like we’d be comfortable with and including coming back with some pricing adjustments. If there is an idea of like, hey, our total budget for trying to spend on RCM and a tool like medallion, this is really where we want to be at that’s information I can take back to my finance team and say we’re creating a partnership package with you and the RCM that you’re that you’ve decided on and approvals around that kind of model.
Glenda Mack (27:40) Yeah. I mean… we need to be on the low, the bottom half of the 150 K, right? I mean, we can’t be at 185 K and feel good about it especially for pricing we’ve seen in other places. Yeah, we definitely would lose some of the qualities that you have here, but if it’s going to be 50,000 dollars a year difference, it might be okay to lose a few of those things, right?
Jake Shubert (28:09) Yeah, I guess Glenda like I’m trying to be conscientious of y’all’s time and y’all’s, bandwidth like you’re going through a pay loss implementation. You’re talking to other vendors like, I understand you guys have been very generous of like taking time to like meet with us throughout these conversations. So here’s kind of how I’m thinking about things. You let me know if it’s a terrible idea, if it’s a great idea. But what I’m thinking about is like, obviously this pricing is out of whack for what you guys are looking for. I think that’s very fair feedback. What we would love to do is Nicole and myself, we can take your feedback, go to our finance team, get more aggressive on the package and try to put something in front of you that is as close to what you’re looking for as possible to try to make this, you know, our goal is for this to be a no brainer for you guys, where we think that we’re really aligned from a partnership perspective. And.
Glenda Mack (28:55) I.
Jake Shubert (28:57) think there’s a lot of strong value here. So we want to make sure that, you know, we’re meeting in the prices and the constraint sure, is there like just a total annual, you know, average contract value spend where this would be like a no brainer for you guys based off of what you’ve seen from medallion. I.
Glenda Mack (29:13) Can’t really answer that honestly? Jake, because I have to take what you give me compare it to other things and we’ve not had this type of a platform in the past. So, I don’t have a basis of comparison. All I have as a basis for is labor, right? Labor costs. And I certainly don’t want to spend more than I’m already spending when I know I’m spending an excessive amount on labor for this, right? Without antiquated processes. So, it doesn’t do me any good to go to a new process that’s more efficient, but spend more money. The whole point of getting a more efficient process is I’m spending less than I was before my labor?
Jake Shubert (29:48) Yeah, I mean,
Glenda Mack (29:49) that’s valid. So that’s just being completely blunt and honest with you? No?
Jake Shubert (29:53) I don’t have a counter argument for you, right? I think that’s extremely fair. So, and is it safe?
Andrew Harnish (29:59) To say that the half time employee is not also included in that calculation like the fte?
Jake Shubert (30:08) Are you asking, are you asking me, Andrew? Yeah, yeah, yeah, yeah, you’re accurate, right? So, when we’re talking about this cost of fte, that’s also not including the cost of the fte, which again, takes us further away from what Glenda’s talking about. So, I think we’re in alignment with how we’re thinking about things. I guess my question would be if we’re able to get more aggressive on discounting, would you guys be open to a 15, 20 minute call either tomorrow or Monday where we could try to present to you what the more aggressive pricing will look like and get your feedback from there?
Glenda Mack (30:39) Probably not tomorrow or Monday, because like I said, we’re, in the depths of pay loss limitation over the next few days and I can’t really put any more calls on my calendar until we know that pay loss is fully implemented and we’re good with it. Yeah. So you’re looking at the end of next week before I’d really feel comfortable putting a call back on the calendar, okay?
Jake Shubert (30:57) What time end of next week would work best, for the team? Just… one second, please? Yeah, no, take your time.
Glenda Mack (31:10) So,
Glenda Mack (31:14) I’m looking at this week and that’s horrendous.
Jake Shubert (31:16) You’re like, why am I so booked why?
Glenda Mack (31:18) Am I so filled up? So, let’s see Thursday afternoon,
Jake Shubert (31:25) Is pretty.
Glenda Mack (31:27) open. Okay. And Friday is pretty open after nine 30. So.
Jake Shubert (31:32) For Thursday afternoon, could you do two 30 eastern? That’d be 11 30 pacific?
Glenda Mack (31:39) Yeah, I could do two 30. Okay. I’m.
Tom Orlandi (31:44) flexible for whatever you need. So, okay with Glenda, I’ll give you that.
Jake Shubert (31:49) Cool. And Andrew, that works for you as well.
Jake Shubert (31:51) Okay, great. And then Glenda, I won’t let you guys go early. So just a couple quick questions. And I’m sure you’ve heard this before when you’re like purchasing software. But when Nicole and I go to our finance team to get more or less on the discounts, they’re gonna ask us like pretty much like one core question, which is if, in theory, we find a price that works for Weston, when would they want to be moving forward and signing a contract? I just, I want to just ask that directly. So I have a good answer. This is not trying to rush your timeline, but like, when do you think would be the natural timeline if we can find a good price point that you guys would want to?
Glenda Mack (32:24) Move forward?
Glenda Mack (32:24) That’s a fair question. Yeah. I mean, I intend to have this settled by the end of this month by the end of April. Okay? And move forward with somebody and we will move sport. So we’re going to push our RCM implementation out some because that’s a whole another deal, but this is an implementation we move forward with a little bit faster because it’s not like we’re replacing a system. We’re input, we’re inputting a system, right? Yep. So this implementation would probably come in… the second quarter, early third quarter is an implementation timeline we might be looking at. Yep. Makes.
Jake Shubert (32:56) sense. Okay. That is really helpful. Nicole anything on our side that we’re forgetting to ask? No?
Nicole Campbell (33:01) I think, I want to, I think we’re good.
Nicole Campbell (33:03) Thank you so much for the feedback and the transparency and we’re excited to come back to you with a, hopefully something that’s better scoped for what you’re thinking for this project. And I just wish you all the best of luck over the next couple days with the paylocity integration. Yeah.
Glenda Mack (33:19) I’m just trying to be completely available. Yeah. So if we need to drop back and make decisions or change things and we need an executive to do it, then I need to be available to do it absolutely.
Nicole Campbell (33:30) But we’re thinking of you. Hopefully, it’s painless.
Glenda Mack (33:34) It’s not as bad as we think it is, but it’s just we’re in the middle of it. And so it’s always a little bit more dramatic being in the middle of it absolutely.
Nicole Campbell (33:42) But nothing from our end, Jake, I think we can let them go if you’re good with next.
Jake Shubert (33:46) Steps. Cool. Yeah, Glenda. Yeah, I think you mentioned Mike was the person to chat with about API doc stuff. If they do have any questions, just let us know. We’re happy to answer them. Besides that, we’ll all watch the action park documentary between now and next Thursday. We’ll chat next week. All right. Thanks. Everybody. Thanks guys. Bye.