Midwest Partner Solutions (rev )

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Beryl Benson
6 years ago
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Midwest Partner Solutions (rev.04.07.17) This agreement serves to outline the expectations of Midwest Dental Equipment & Supply (MWD) and, on this day of, in the year.

1 Midwest Partner Solutions (rev ) This agreement serves to outline the expectations of Midwest Dental Equipment & Supply (MWD) and, on this day of, in the year. It is Midwest Dental s goal to assist the customer in its continued growth, productivity and financial goal attainment. By way of the Midwest Partner Solutions (MPS), Midwest Dental agrees to secure, support and negotiate discounts from dental manufacturers and small business service companies, which will offer substantial bottom line savings for the customer. The program also includes a proactive service and maintenance program designed to limit unexpected downtime and maximize productivity. Additionally, Midwest Dental has created a Rebate Program based on volume purchases in Merchandise, Capital Equipment and Laboratory Services. Merchandise: 1. Formulary pricing, which includes up to a 25% discount on common items from our formulary vendors. This will be net pricing, with no free goods. Participation from all of the MPS membership will allow us to negotiate the formulary pricing down and increase fulfillment rates, creating a win-win for the partnership. Note that the formulary pricing is fluid, based on cost, and can fluctuate up and down based on manufacturer cost changes. 2. Non-Formulary pricing, which will be a 7% discount on all other products, from nonprime (non-participating) vendors. These products will include any manufacturer free goods available at the time of sale which Midwest will submit for and track for the MPS member. 3. 5% annual rebate on formulary purchases, paid as a credit to the member account within 60 days of the end or renewal of the annual contract. 4. Merchandise will ship with no handling fees. Minimum order to qualify for free freight is $250. Exception: any orders that are entirely stone and chemicals will be charged at actual freight. 5. Designate a dedicated customer service person to help facilitate and track all merchandise orders, and to better manage and eliminate ordering mistakes. 6. Inventory management solution provided by Midwest Dental, which incorporates a tag system and min/max ordering procedures. 7. Quarterly reviews will be provided to track rebate progress and refine the formulary purchasing to maximize the member s savings potential and achieve budgetary goals. 8. Must meet and be current on all qualifications (page 5). Estimated Annual Purchases: $ Estimated Monthly Purchases:$ Capital Equipment: 1. Guaranteed most competitive pricing on capital equipment. 2. Waived fee ($4000) on enhanced 3D Design Services for all renovations and future dental locations. 3. All equipment purchases will include free installation and no freight charges. 1

2 4. All new equipment purchases will include up to a 1-year labor warranty. The manufacturer warranties on equipment and parts is separate and varied in length and nature. 5. Annual equipment rebate credit (credit will be issued to equipment account): 1.5% on purchases up to $25,000; 2% on purchases over $25,000. Service and Maintenance: 1. Establish a discounted service and maintenance hourly rate by location of $ per hour. After one hour, time will be prorated based on the agreed rate in 15 minute increments. 2. Formulary hourly rate on service and maintenance. 3. First Response: MPS members will get a first priority response on service calls. 4. Two free service and maintenance visits per contract year: * The first 2-hour visit will include a maintenance/training and equipment documentation review of the entire office, which includes serial numbers of all mechanical and equipment items. This allows our service techs to be more prepared on a service call and be able to diagnose and fix a problem in a timely manner. This visit will also include training for any new or untrained staff members. Any additional service procedures performed or parts used during this visit will be charged to the member ($390 value). * The second visit will be up to 1.5 hours preventive maintenance service call to maintain all mechanical units in the office. All parts and materials used, and any additional service procedures (beyond 1.5 hours) will be billed to the account at the formulary hourly rate. Our goal as a partnership is to have the service team integrated as part of the MPS member's team to prevent disruptions in business, rather than as an urgent request for help ($292 value). 5. All equipment loaner units will be supplied at no charge. Midwest Dental s goal is to have critical loaner replacement units delivered within 24 hours or sooner. 6. Designate a service coordinator to manage all office service/maintenance calls to better understand and manage service needs for the dental office, while helping to manage budgetary goals. 7. Must meet and be current on all qualifications (page 5). Laboratory Services provided by Techsource Dental, LP, a digital dental laboratory in Plano, Texas, which was established in 2004 and provides full services, including the ability to receive digital impression scans from most of the major intraoral scanners. As a member of the MPS, your practice will receive: 1. Discounted lab pricing from Techsource Dental, LP, which represents a 10% discount off list pricing for fixed prosthetic crown and bridge lab cases. 2. Lab rebates will apply only to Techsource Dental, LP, which is a separate entity with separate billing. Eligible rebates will be applied as a credit to the member's account within 60 days of the end or renewal of the annual contract. 3. Must meet and be current on all qualifications (page 5). 2

3 4. Rebates will be applied based on the following purchases of fixed prosthetic crown and bridge cases: $0 to $59, % $60,000 to $99,999 2% $100,000 or more 3% United Dental Alliance (UDA) 1. MPS agreement includes a membership in the UDA. 2. Includes discounts on 30 different categories of small business expenditures. Discounts up to 50% in shipping, commercial water, office supplies, printing services, cellular phone service, medical waste disposal, office furniture, promotional material, scrubs/uniforms, payroll, and many more. 3. As a GPO, UDA is focused on expense management to improve the business outcomes of member practices. Some of the services include: Interactive Member Website, Electronic Newsletters, Enrollment Assistance, Education Programs on Procurement, Member Only Specials, Expense Analysis, Competitive Bid Assessments, Resolution of Business Partner Issues, Service Contract Reviews and Discussions on Partner Value. 4. UDA can help practices with employee retention by offering access to professional and personal improvement. Many of their partner company discounts are available to employees of the practice. Key brand discounts for employees include FedEx, Nestle, Staples, OfficeMax, AT&T and Verizon. Dental Compliance Specialists 1. FREE Online OSHA Training 2. FREE Online HIPAA Training 3. FREE Webinar Access 4. Monthly Compliance Newsletter 5. 2 Complimentary Compliance Consultations per year ($250 value) 6. Save 10% on Upgraded Compliance Services Continuing Education 1. Midwest Partner Solutions members will receive a 20% discount on all Midwest Dental sponsored CE events. The discount applies only to events in which Midwest Dental is collecting the fee. Midwest Dental sponsors over 20 CE events in our market areas per year. Annual Fee Analysis 1. No charge fee analysis annually customized to your market area ($500 value). 3

Midwest Partner Solutions Program Pricing All of the benefits above, which include the discounts and rebates in merchandise, equipment, service and Techsource Dental lab, as well as membership in the

4 Midwest Partner Solutions Program Pricing All of the benefits above, which include the discounts and rebates in merchandise, equipment, service and Techsource Dental lab, as well as membership in the UDA, are provided to MPS members at an annual cost of $ In addition, membership in the MPS will provide discounts for our partner companies listed below. We have chosen just a small number of partner companies because their philosophies mirror that of Midwest Dental, and also because we believe these companies' services are crucial to building and maintaining a successful business, capable of surviving in the changing environment of dental healthcare. Listed below are those companies that have partnered with Midwest Dental to bring crucial services for your business at special negotiated rates: MWA CPAs + Business Advisors 1. Industry leading dental practice CPA's + business advisors. 2. We go ABOVE AND BEYOND for each of our clients proving how uncommon this phrase really is. As a business owner of a growing practice, you seek advisors who don't just sell you the next plan or product, but who white-board with you to uncover your remarkable and unique path to success. 3. Sophisticated and proactive long-term strategic advisory & critical back-office services. 4. Whether your business is a single practice startup seeking to expand and achieve realistic long-term goals, or a complex multi-location or multi-provider practice focused on maximizing its' practice valuation to buyers and investors, our ability to tailor financial services to your business model, culture, and goals is unmatched in the dental industry. 5. Accurate and timely financial data delivered in a one-page scorecard tracking both financial performance and practice metrics along with monthly or quarterly business advisor meetings to help you achieve your goals. 6. Services and Case Studies (addendum B). Lucent Spot Marketing 1. Specializing in Social Media and digital marketing. 2. Services include a social media manager, content creation, analytic reporting and competitive analysis report. 3. Focuses in on consumer engagement and driving new customers to your business. 4. Services are provided month-to-month with no contract to insure satisfaction. 5. Discounts on multi-levels of services to fit the needs of the practice (addendum C). 4

5 Midwest Partner Solutions Program Qualifications: 1. Midwest Partner Solutions member agrees to purchase a minimum of 75% of merchandise through Midwest Dental based on monthly purchase goals determined by the following formula: (*Verifiable annual revenue from prior year x 5.5%) x 75%/12. From this, we will establish a monthly purchase goal that will be agreed on and reviewed quarterly. Example: A practice with $1,500,000 collections from the year before. $1,500,000 x 5.5% = $82, x 75% = $61,875.00/12 =$5, monthly average commitment. 2. All payments must be made by check and paid within Statement/10th terms. 3. Agree to partner with Midwest Dental to help establish merchandise formulary to drive down costs and maximize production. 4. Annual membership fee of $ (Non-refundable). 5. Minimum merchandise orders of $250 with 2 smaller fill-in orders per month. 6. No gift cards. 7. Sign a Non-Disclosure Agreement between both parties. 8. Provide to Midwest Dental an advance notice of all equipment bids 2 weeks prior to the customer s submission to other dental suppliers. Give Midwest the opportunity to match any competitive equipment pricing. *Verifiable annual revenue. For example: set baseline from prior year, then use year to date figures on the Day Sheet going off of production and collections. Rebate terms: Qualifying rebate will be paid in the form of a credit, and will be issued within 60 days after the renewal or expiration of the annual agreement. Rebate credits for each Merchandise, Capital Equipment and Laboratory Services stand on their own. Terms: Annual agreement with automatic renewal. A 90-day cancellation notice (in writing and delivered by U.S. Certified Mail) is required by either party. Our goal in developing the Midwest Partner Solutions is to form a strong alliance between Midwest Dental, our key dental customers, and select vendors to produce a win-win-win environment which allows all of us to continue to thrive and compete in the dental industry. The dental industry is facing huge changes and challenges associated with the growing number of corporate entities and venture capitalists which have entered. Our program will work to strengthen our dental partners but it is crucial that we work together and be willing to make necessary changes to further this venture, gaining strength and purchasing power. Start date: End date: Midwest Dental Equipment & Supply By: Print: Company: By: Print: 5

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