Renewal is where an employer contract is won or lost. Start 90 days before the renewal date. Bring the employer a short summary of what they got for their money, and bring yourself a clear view of whether the contract works for you and what you want to change.
90 days out
- Check the contract's renewal and notice dates.
- Pull a full year of enrollment, engagement and billing.
- Work out the contract's profit. Here's how.
- Decide what you want: same terms, a price change, different terms, or to end it.
What to bring the employer
- A one-page year in review built from your quarterly reports. Here's the template.
- Enrollment and engagement trends.
- Access numbers, like time to an appointment.
- Any proposed changes, with the yearly dollar effect.
What to bring for yourself
- Your floor price, updated for this year's costs. Here's how to set it.
- The group's use compared with your panel.
- Billing history: late payments, disputes and credits.
- The share of your revenue this contract represents.
An example
In a made-up example, a contract covers 50 members at $65, or $39,000 a year. The group's use ran 30% above your panel average, and payments averaged 20 days late. You propose $70 with net 15 terms and autopay. That's $3,000 more a year for the employer, which you explain with the use numbers. You also know you'd accept $68 with autopay.
In the meeting
Start with what went well. Then show the numbers, then the proposal. Listen to what they want changed. Agree on next steps and a date for a signed renewal.
After the meeting
- Send a short written summary of what was agreed.
- Update the contract list with the new rate, term and renewal date.
- Check that the first invoice at the new terms is correct.
What I'd do this week
- List renewals coming in the next 120 days.
- Start the year-in-review for the nearest one.
- Write down your walk-away terms before you schedule the meeting.
Common questions
What if the employer wants a lower price?
Compare their number with your floor. Offer different terms, like fewer included extras, before cutting the price.
Should I bring up late payments?
Yes, briefly and with dates. Ask for autopay or shorter terms as part of the renewal.
What if the employer doesn't renew?
Thank them, give members notice and offer them individual memberships. Then update your cash forecast.
Want a year of contract numbers ready for renewal?
We reconcile every account every month and send your P&L and Balance Sheet by the 15th, so decisions like this start from real numbers. If that's what you need, apply to work with us.