An employer contract can add a group of members at once, but it only helps if the price covers the care those members use and the terms don't strain your panel. Check capacity, price and payment terms before you say yes.
Check your capacity first
A contract that adds 80 members at once changes your schedule overnight. Ask how many employees are likely to enroll, how often they'll come in, and whether your current members would feel the squeeze. If the answer is a hire, the contract has to cover that cost too. Here's how to test a hire.
Price it on what it costs you
Employer groups often expect a discount. Before you offer one, work out what a member costs you each month in time, labs, supplies and processing. Then decide how far below your regular price you can go.
In a made-up example, your regular price is $80 a month, and each member costs you about $20 a month in variable costs. An employer offers $60 a member for 50 employees. That's $40 a member toward your fixed costs instead of $60, or $2,000 a month instead of $3,000. If those 50 members fill time you'd otherwise leave empty, it can still make sense. If they push out full-price members, it doesn't.
Read the payment terms
- Who pays: the employer, the employee or a split.
- How you're paid: one monthly invoice or individual charges.
- When you're paid, and what happens if they pay late.
- How members are added or removed, and when the count is set.
- How either side can end the contract.
Have an attorney review the agreement before you sign.
Plan for invoicing and follow-up
One invoice to an employer is easier than 50 card charges, but it can also sit unpaid for months. Decide who sends the invoice, who follows up and when. Here's how to collect late employer invoices.
Keep it separate in your books
Once you sign, track the contract's revenue on its own line so you can see whether it's paying off. This post covers how.
Start small if you can
If you're unsure, ask for a pilot. A six-month agreement, or a cap on how many employees can enroll in the first quarter, lets you see real usage before you commit long term. Agree ahead of time on what you'll look at when the pilot ends: visits per member, time spent, payment timing and whether your regular members noticed a change. If the numbers hold up, renew at a price you now know works.
What I'd do this week
- Work out your monthly cost per member.
- Decide the lowest per-member price you'd accept.
- Estimate how many visits the group will add each month.
- List the payment terms you want before the first meeting.
Common questions
Should employer members pay the same price as everyone else?
Not always. A lower price can work if the group fills open time and pays reliably. Price it on your costs, not on what the employer offers first.
What's the biggest risk?
A large group that uses more care than expected, paid at a discount, and slow to pay. Check all three before you sign.
Do I need a written agreement?
Yes. Have an attorney review it, especially the payment, termination and enrollment terms.
Want to see whether a contract is paying off?
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.