Part VII: Leading Through COVID-19 While Preparing for the ......May 06, 2020  · 124 159 178 20 38 57 58 14% 17% 19% 21% 0% 5% 10% 15% 20% 25% 0 100 200 300 400 500 600 700 800 900

Bill Urwin, PresidentMay 6, 2020

Part VII: Leading Through COVID-19 While Preparing for the Future

Agenda

• Consult YHN Resources For Immediate Use • Industry, Laws, and Guidelines Update • What are We Seeing Now? • Loans and Forgiveness Considerations• Financial Comeback Plan• Areas of Focus Checklist• Questions

Consult YHN Resources for Immediate Use

• Workplace, Financial, and State Guidance Resources

• Marketing and Communication Collateral

• Training Resources• Telehealth Resources• Webinar Presentations and

Recordings • Manufacturer Updates

https://consultyhn.com/covid-19-resources/

Visit our Consult YHN website to find updates every day

We have the communication collateral and workplace resources you need as

you plan to reopen

Industry, Laws, and Guidelines Update

New CDC Guidelines

• Get Your Clinic Ready for Coronavirus Disease 2019 (COVID-19)– Before patients arrive– When patients arrive– After patients are assessed – Train and prepare your staff now

Centers for Disease Control and Prevention

Telehealth Update• On April 30th, the Centers for Medicare and Medicaid Services (CMS) issued an interim

final regulation that states that, all professionals who are able to bill Medicare for their professional services will be considered eligible telehealth providers for the duration of the COVID-19 public health emergency

• The CMS Fact Sheet states: – “The waiver of these requirements expands the types of health care professionals

that can furnish distant site telehealth services to include all those who are eligible to bill Medicare for their professional services. This allows health care professionals who were previously ineligible to furnish and bill for Medicare telehealth services, including physical therapists, occupational therapists, speech language pathologists, and others, to receive payment for Medicare telehealth services.”

American Academy of Audiology

Seyfarth NRF

Operation Open Doors – Employment • Transition from furlough• Determine how to handle refusal to work and request for accommodations• Establish well-defined protocol for dealing with suspected and confirmed

cases of COVID-19 • Consider screening/testing measures • Determine rules for visitors, vendors, and other workers in workplace• Consider potential changes in pay, hours, schedules, duties, wages/hour• Assess employee benefits offerings • Determine which workplace safety law and orders apply• Evaluate hiring practices/hiring needs

Seyfarth NRF

Operation Open Doors – Operations • Appoint return to work team • Deciding which facility to open

– Economic analysis– Co-tenancy considerations– Landlord/tenant relationship– Sublease/assignment/give back/repurposing– Retrofit

• Prepare store for opening• Signage • Supply chain and inventory • Business hours• Establish protocol for vendors and non-employees • Security operations• Promote “contactless” shopping options• Products

Seyfarth NRF

Operation Open Doors – Health Policy • Social distancing • Face masks and personal protective equipment (PPE)• Cleaning/sanitization• Employee training

Seyfarth NRF

We have the communication collateral and workplace resources you need as you plan to reopen

What to Do if People Are Uncomfortable Returning to Work?

• Address and communicate all employment, operations, and health policy items – Stagger schedules – Social distancing measures – Remote work when possible

FMLA and Extended FLMA vs. FurloughsFMLA & EFMLA Furlough

May be paid (EFMLA) or unpaid (FMLA) Leave of Absence (LOA)

Unpaid Leave of Absence (LOA)

Dictated by medical necessity Usually dictated by prevailing deleterious economic conditions

Term of up to 12 weeks Indefinite term

Job-protected (there is a requirement for an employer to hold/offer a similar position upon

return)

Not job-protected (there is no requirement to hold or offer any position)

What Are We Seeing Now?

Positives Trends at the End of April

Healthy Hearing

637

736

856 865

86124

159 178

20 38 57 58

14%

17%19%

21%

0%

5%

10%

15%

20%

25%

0

100

200

300

400

500

600

700

800

900

1000

Week of Apr 6 Week of Apr 13Week of Apr 20Week of Apr 27

Calls, prospects, appts set and conversion rate

All usable calls Prospect calls

Appts set % prospects

14.0

22.118.8

14.1 12.0

0.05.0

10.015.020.025.0

Avg lag (Feb 10-14)

Avg lag (Apr 06-Apr 10)

Avg lag (Apr 13-17)

Avg lag (Apr 20-24)

Avg lag (Apr 27-May 01)

Days between call date and appt date

40%

60%

Insurance vs. Private (week of Apr 27)

Likely Insurance

Privatepay/Unknown

Of the 58 appts set

Recent Uptick in Appointments Set

Call Conversion Rate 2% 4% 3% 6%

YPCC Answering Service

8

1614

27

0

5

10

15

20

25

30

6-Apr 13-Apr 20-Apr 27-Apr

YPCC APPOINTMENTS

Associate Case Study – Pinnacle Hearing

Practice Information

• 2 locations in Arkansas• 5 employees (2 Providers) • 6.5 years in business

Read the full Associate Q&A in our Newsletter next week

COVID-19 Impact on Business

• Never closed doors, Arkansas has not had a “stay-at-home” order• 60-70% of appointments canceled, rescheduled, or switched to virtual for high-risk

patients

Financial Approach

• Recently did a Cash Flow Analysis with Account Manager (“eye-opening” to have someone who truly understands the business walk through it)

• Monthly P&Ls (have an accountant and company that does books)

Employee Approach

• Have not had to lay off or furlough employees • Owner joins weekly DO Consult teletraining – hearing how other clinics are functioning,

how to be a more effective leader • Providers and FOPs join weekly Consult teletrainings • Team meetings – motivation to have skin in the game, come up with ideas,

empowered to feel like leaders

Associate Case Study (Continued)

Operational Approach

• Main office: Closed waiting room, did not have to limit hours, screen patients before come in, curbside service for cleaning checks, drop box

• Satellite office (in an urgent care clinic): could not control waiting room so stopped actively seeing patients there for about two weeks – just started seeing patients again in a controlled environment

• Implemented Block Scheduling in September – cleaned up schedule, saw how much down time Providers had, capitalize on time spent on revenue-generating appointments – huge impact on success in navigating current situation

• Block Schedule included daily Walk-In hours from 12pm to 1pm which have now been changed to curbside hours

Patient Communication Approach

• Focused on reaching out to patients to let them know how could still assist them • Taking time to go through and clean up database and contact patients • Calling patients on the phone, mailing letters, emailing, texting, social media • Capturing patients’ information across all communication vehicles/approaches

Read the full Associate Q&A in our Newsletter next week

Associate Case Study (Continued)

Telehealth

• Virtual appointments (CounselEar), no diagnostic appointments• Focused on new patients who were scheduled for a test, but not safe for them to have

face-to-face appointment • Doing case history and gathering as much information as possible – leaving more time

with patients to build a rapport• Walking patients through clean and check services• Adjustments depending on the age of the hearing aid and the manufacturer • Answering questions about hearing aids – connecting patient with Provider right away

since have extra time to accommodate • Helping patients who live far away, flexibility around younger patient work schedules,

additional opportunity to connect with patients and their families – for many older patients, the children are helping them join virtual appointment and then stay for appointment

Read the full Associate Q&A in our Newsletter next week

Loans and Forgiveness Considerations

Paycheck Protection Program (PPP)

PPP guidelines are still changing, new and/or additional information every day

Government moved very quickly, even caveats brought up now

Terms outlined here are subject to requirements of SBA’s PPP and may be subject to interpretation by lenders and subject to change based on additional guidance

Sample Associate Snapshot: January 2020 (pre-COVID)

Revenue: • $1M Annual Revenue• 37 units/month• Average Selling Price:

$2,234

Payor Mix: • Private Pay: 91%• Managed Care: 9%

Staffing: • Owner/Provider• Provider #2• FOP #1 • FOP #2

Payroll: • Owner/Provider: $114.5K• Provider #2: $90K • FOP #1: $55K • FOP #2: $55K

Sample Associate: PPP Loan Calculation• Owner/Provider with compensation of $110,000 plus benefits of

$4,500, so total “payroll costs” of $114,500 annually • Other employees’ compensation including benefits totals $200,000

annually – Provider #2: $90,000 – FOP #1: $55,000– FOP #2: $55,000

• Total above = $314,500• Adjust for those above the $100,000 limit, so subtract $14,500• Allowable = $300,000/12 months = average total monthly payments

of $25,000• $25,000 monthly X 2.5 = $62,500 maximum loan amount

What Costs Are Eligible for Forgiveness?

PayrollWhat’s Included What’s Not Included

• Gross wages to employees*

• Payments to active general partners*

• Payments to self-employed business owner*

• Employer portion of group health benefits

• Employer portion of retirement benefits

• Employer portion of state unemployment

*Limited to $100K annualized: $100K/52X8 weeks = $15,385

• Portion of annualized wages >$100K*

• Payments to independent contractors (1099 costs)

• Benefits to self-employed business owner

• Employer federal payroll taxes (SS/Medicare/FUTA)

• Payroll service charges

• Qualified sick/family leave, credit under FFCRA

• Wages if principal residence outside US

Rent

What’s Included What’s Not Included • Building rent

• Warehouse rent

• Equipment rent

• Business vehicle lease

Copy of fully executed lease for lender

• Leases not in force as of Feb 15, 2020

UtilitiesWhat’s Included What’s Not Included

• Electric

• Gas

• Water

• Transportation

• Including business vehicles fuel costs

• Telephone

• Internet

• Service not in place as of Feb 15, 2020

Interest

What’s Included What’s Not Included • Mortgage interest on building

• Equipment loan interest

• Business vehicle loan interest

• Mortgage incurred before Feb 15, 2020

What Data is Needed?1. Loan Forgiveness Computation Worksheet (work with accountant).2. Documentation to support the information provided in your FINAL Loan Forgiveness

Calculator (i.e. Payroll Reports by pay period from your payroll provider or benefits providers for the 8-week testing period, 940/941 tax filings, state unemployment tax filings and state income tax filing reports.) Support should include full time equivalent employee count and wage rates by employee.

3. Bank statements from the account where the funds were deposited through the time of application for forgiveness.

4. Copies of all statements of interest paid on covered debt obligations incurred prior to February 15, 2020, indicating payment amounts and proof of payment for the 8-week period following the loan origination date.

5. Copies of cancelled checks, statements or other evidence of covered lease obligations (including copy of executed lease agreements for real estate and tangible personal property) and utilities paid during the 8-week period following the loan disbursement date.

6. If self-employed individual or independent contractor, copy of 2019 Schedule C.

How Much of My Loan Will Be Forgiven?• You will owe money when your loan is due if you use the loan amount for anything

other than payroll costs, mortgage interest, rent, and utilities payments over the 8 weeks after getting the loan. Not more than 25% of the forgiven amount may be for non-payroll costs.

• It’s important to recognize that you will also owe money if you do not maintain your staff and payroll.

• Number of Staff: Your loan forgiveness will be reduced if you decrease your full-time employee headcount.

• Level of Payroll: Your loan forgiveness will also be reduced if you decrease salaries and wages by more than 25% for any employee that made less than $100,000 annualized in 2019.

• Re-Hiring: You have until June 30, 2020 to restore your full-time employment and salary levels for any changes made between February 15, 2020 and April 26, 2020.

How is Forgiveness Reduced? 1. Calculate eligible costs incurred/paid during the 8 weeks after the loan was

disbursed (determine $ amount of costs eligible for forgiveness) 2. Calculate whether there is a reduction in the forgiveness amount

• FTE headcount reduction test (determine % decrease in headcount, if applicable), AND

• Wage reduction test, per employee reduction in pay > 25%**, THEN• Adjust forgiveness amount for non-payroll costs greater than 25% of

the forgiveness amount

Eligible Costs – Calculated Reduction = Forgiveness (limited to loan amount)

Forgiveness Point of Clarity • Will a borrower’s PPP loan forgiveness amount be reduced if the borrower laid

off an employee, offered to rehire the same employee, but the employee declined the offer?

• No– SBA and Treasury intend to issue an interim final rule excluding

laid-off employees whom the borrower offered to rehire (for the same salary/wages and same number of hours) from the CARES Act’s loan forgiveness reduction calculation.

– The interim final rule will specify that, to qualify for this exception, the borrower must have made a good faith, written offer of rehire, and the employee’s rejection of that offer must be documented by the borrower. Employees and employers should be aware that employees who reject offers of re-employment may forfeit eligibility for continued unemployment compensation.

SBA and Department of Treasury PPP FAQs as of 5/3

The Next Interim Final Rule

• Expected soon• Should provide guidance on: – Whether or not PPP Loan forgiveness will be an

8-week lookback or a snapshot– Whether June 30th will be the snapshot date – Whether the “covered period” is extended

beyond June 30th

While There is Still Lack of Clarity, To Be Safe …

• Bring back employees with at least one payroll period before “end date” (6/15 in our example on next page) – If weekly payroll, 1 week– If biweekly payroll, 2 weeks

• Consider that payroll for people still working counts – not just those employees you need to bring back

• For those of you who just received the funding, 8 weeks from now is June 30th, we expect an extended deadline with the next Interim Final Rule

• $62,500 loan received 4/20 • 8 weeks later is 6/15 • Last day to remedy loan forgiveness reduction is 6/30

Cash Flow Analysis: Focus on Expenses

Data Inputs for Cash Flow AnalysisBusiness Down 85% 75% 65% 50% 30% 20% 10% 0% 0%% of Revenue 15% 25% 35% 50% 70% 80% 90% 100% 100%

% Revenue Spent on Marketing 0% 0% 0% 2.5% 5% 5% 7.5% 10% 10%Information April May June July August September October November December

Cash at the Start of the Month: $15,000 $72,362 $51,095 $39,350 $28,779 $34,122 $44,942 $59,280 $76,700Revenue

Net Hearing Aid Sales Revenue Collected Current Month: $11,375 $18,958 $26,542 $37,917 $53,083 $60,667 $68,250 $75,833 $75,833Professional Fee (Third Party, Fitting Fee, VR) Revenue Collected Current Month: $1,125 $1,875 $2,625 $3,750 $5,250 $6,000 $6,750 $7,500 $7,500Other Revenue Collected Current Month: $563 $938 $1,313 $1,875 $2,625 $3,000 $3,375 $3,750 $3,750Loan/Line of Credit/Available Reserve: $62,500Total Cash In: $75,563 $21,771 $30,479 $43,542 $60,958 $69,667 $78,375 $87,083 $87,083

Cost of Goods SoldCost of Hearing Aids Payable Current Month: $3,981 $6,635 $9,290 $13,271 $18,579 $21,233 $23,888 $26,542 $26,542Other Cost of Goods Payable Current Month: $213 $354 $496 $708 $992 $1,133 $1,275 $1,417 $1,417Total Cost of Goods: $4,194 $6,990 $9,785 $13,979 $19,571 $22,367 $25,163 $27,958 $27,958

Gross MarginGross Margin: $71,369 $14,781 $20,694 $29,562 $41,387 $47,300 $53,212 $59,125 $59,125

Expenses (total does not reflect all inputs)Advertising Expenses Due Current Month: $0 $0 $0 $1,089 $3,048 $3,483 $5,878 $8,708 $8,708Owner/Provider's Salary & Benefits to be Taken Current Month: $3,846 $7,692 $8,250 $11,010 $8,808 $8,808 $8,808 $8,808 $11,010Employee Salary & Benefits to be Paid Current Month: $7,692 $15,385 $15,385 $19,231 $15,385 $15,385 $15,385 $15,385 $19,231

Provider #2 $3,462 $6,923 $6,923 $8,654 $6,923 $6,923 $6,923 $6,923 $8,654Front Office Professional #1 $2,115 $4,231 $4,231 $5,288 $4,231 $4,231 $4,231 $4,231 $5,288Front Office Professional #2 $2,115 $4,231 $4,231 $5,288 $4,231 $4,231 $4,231 $4,231 $5,288

Rent to be Paid Current Month: $0 $8,333 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167Travel/Meals/Entertainment for Current Month: $0 $0 $0 $0 $0 $0 $0 $0 $871Utilities for Current Month: $200 $200 $200 $200 $200 $200 $200 $200 $200Phone for Current Month: $100 $100 $100 $100 $100 $100 $100 $100 $100All Other Expenses to be Paid Current Month: $2,169 $4,338 $4,338 $4,338 $4,338 $4,338 $4,338 $4,338 $4,338Total Cash Out: $18,201 $43,037 $42,224 $54,112 $55,615 $58,847 $64,037 $69,663 $76,582

Net IncomeMonthly Net Cash Flow: $57,362 ($21,267) ($11,745) ($10,571) $5,343 $10,820 $14,338 $17,420 $10,501Cash at the End of the Month: $72,362 $51,095 $39,350 $28,779 $34,122 $44,942 $59,280 $76,700 $87,202Number of Months Covered: 4.0 1.2 0.9 0.5 0.6 0.8 0.9 1.1 1.1

• $62,500 loan received 4/20 – 75% toward payroll = $46,875– 25% toward non-payroll = $15,625

Cash Flow Analysis: Focus on Expenses

2 Weeks April4 Weeks

May2 Weeks

June8 Weeks

SpentMaximum PPP Funds

8 Weeks Not Spent

Owner Payroll $3,846 $7,692 $3,846 $15,385

Employee Payroll $7,692 $15,385 $7,692 $30,769

Payroll Total $11,538 $23,077 $11,538 $46,154 $46,875 ($721)

Rent $0 $8,333 $4,167 $12,500

Utilities $200 $200 $200 $600

Phone $100 $100 $100 $300

Non-Payroll Total $300 $8,633 $4,467 $13,400 $15,625 ($2,225)

Total Not Spent ($2,946)

What if I Don’t Spend it All? • Give the money back • Any amount not forgiven will have a maturity of 2

years and fixed interest rate of 1%

Economic Injury Disaster Loan (EIDL) Update

• As of this Monday, no new applications will be accepted

• If you are in the queue, your application will be processed on a first come, first served basis

• Remainder of funds being reserved for small agribusinesses

PPP and EIDL• PPP created by the

CARES Act prohibits borrowers from taking out two loans for the same purpose

PPP EIDL

Purpose • Payroll (75% of the funds received) and remaining 25% on certain operating expenses

• To meet financial obligations and operating expenses that could have been met had the disaster not occurred

Terms • Up to $10 million• 1% interest rate

• Up to $2 million• 3.75% interest rate for businesses • 2.75% interest rate for non-profits

Forgivable • Yes• (amount of any EIDL Advance/Grant is

not forgivable)

• EIDL Loan – No • EIDL Advance/Grant – Yes

Maturity • 2 years • 30 years

First Payment

Due

• Deferred 6 months • Deferred 1 year

EIDL Advance / Grant • Eligible applicants for an EIDL can receive an emergency

advance/grant of up to $10,000 within three days of application (through Dec 31) – The amount of the advance/grant will be determined by

the number of your pre-disaster employees – will provide $1,000 per employee up to $10,000

• There is no obligation to repay the emergency advance/grant, and it is not necessary to have an approved EIDL to receive the grant

How does PPP Coordinate with EIDL?• You can comingle an Economic Injury Disaster Loan (EIDL) and a Paycheck

Protection Program Loan (PPP), IF the money is used to cover different expenses

• Allows a borrower who has an EIDL related to COVID-19 and made on or after January 31, 2020 to apply for a Paycheck Protection Program loan, with an option to refinance that loan into a PPP loan– Can’t receive a loan duplicative of the purpose and amounts applied for

in the PPP• However, the emergency EIDL grant award of up to $10,000 would be

subtracted from the amount forgiven under the Paycheck Protection Program. Existing EIDL borrowers not related to COVID-19 are also eligible to apply for PPP loans for payroll assistance, but they may not refinance into a PPP loans.

EIDL: Review Your Business • How to use it?

– “Repaying obligations that cannot be met due to revenue loss”

– Write down all your debts– If you have plans for expansion, capital expenditure –

might be best financial option

Financial Comeback Plan

Cash Flow Analysis: Focus on Cash In

Data Inputs for Cash Flow AnalysisBusiness Ramp Up Expectations 9 - 20% 15 - 25% 30 - 40% 50% 60 - 70% 70 - 80% 90 - 100% 90 - 100% 90 - 100%

% of Revenue 9% 15% 30% 50% 60% 70% 90% 95% 100% % Revenue Spent on Marketing 0.0% 0.0% 0.0% 2.5% 5.0% 5.0% 7.5% 10.0% 10.0%

Information April May June July August September October November DecemberCash at the Start of the Month: $15,000 $72,362 $51,095 $39,350 $28,779 $34,122 $44,942 $59,280 $76,700

RevenueNet Hearing Aid Sales Revenue Collected Current Month: $11,375 $18,958 $26,542 $37,917 $53,083 $60,667 $68,250 $75,833 $75,833Professional Fee (Third Party, Fitting Fee, VR) Revenue Collected Current Month: $1,125 $1,875 $2,625 $3,750 $5,250 $6,000 $6,750 $7,500 $7,500Other Revenue Collected Current Month: $563 $938 $1,313 $1,875 $2,625 $3,000 $3,375 $3,750 $3,750Loan/Line of Credit/Available Reserve: $62,500Total Cash In: $75,563 $21,771 $30,479 $43,542 $60,958 $69,667 $78,375 $87,083 $87,083

Cost of Goods SoldCost of Hearing Aids Payable Current Month: $3,981 $6,635 $9,290 $13,271 $18,579 $21,233 $23,888 $26,542 $26,542Other Cost of Goods Payable Current Month: $213 $354 $496 $708 $992 $1,133 $1,275 $1,417 $1,417Total Cost of Goods: $4,194 $6,990 $9,785 $13,979 $19,571 $22,367 $25,163 $27,958 $27,958

Gross MarginGross Margin: $71,369 $14,781 $20,694 $29,562 $41,387 $47,300 $53,212 $59,125 $59,125

Expenses (total does not reflect all inputs)Advertising Expenses Due Current Month: $0 $0 $0 $1,089 $3,048 $3,483 $5,878 $8,708 $8,708Owner's Salary & Benefits to be Taken Current Month: $3,846 $7,692 $8,250 $11,010 $8,808 $8,808 $8,808 $8,808 $11,010Employee Salary & Benefits to be Paid Current Month: $7,692 $15,385 $15,385 $19,231 $15,385 $15,385 $15,385 $15,385 $19,231Rent to be Paid Current Month: $0 $8,333 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167Travel/Meals/Entertainment for Current Month: $0 $0 $0 $0 $0 $0 $0 $0 $871Utilities for Current Month: $200 $200 $200 $200 $200 $200 $200 $200 $200Phone for Current Month: $100 $100 $100 $100 $100 $100 $100 $100 $100All Other Expenses to be Paid Current Month: $2,169 $4,338 $4,338 $4,338 $4,338 $4,338 $4,338 $4,338 $4,338Total Cash Out: $18,201 $43,037 $42,224 $54,112 $55,615 $58,847 $64,037 $69,663 $76,582

Net IncomeMonthly Net Cash Flow: $57,362 ($21,267) ($11,745) ($10,571) $5,343 $10,820 $14,338 $17,420 $10,501Cash at the End of the Month: $72,362 $51,095 $39,350 $28,779 $34,122 $44,942 $59,280 $76,700 $87,202Number of Months Covered: 4.0 1.2 0.9 0.5 0.6 0.8 0.9 1.1 1.1

Month April May June July August September October November December Total Business Down 85% * 75% 65% 50% 30% 20% 10% 0% 0%% of Revenue 15% 25% 35% 50% 70% 80% 90% 100% 100%Normal Units 37 37 37 37 37 37 37 37 37 336Normal Revenue $83,333.33 $83,333.33 $83,333.33 $83,333.33 $83,333.33 $83,333.33 $83,333.33 $83,333.33 $83,333.33 $750,000.00Units 6 9 13 19 26 30 34 37 37 211Cash In $75,000.00 $20,833.33 $29,166.67 $41,666.67 $58,333.33 $66,666.67 $75,000.00 $83,333.33 $83,333.33 $533,333.33Cash Out $18,381.25 $43,397.92 $41,846.79 $52,718.03 $54,499.84 $57,731.09 $62,921.71 $68,547.76 $75,187.82 $475,232.21Difference $56,618.75 -$22,564.58 -$12,680.13 -$11,051.36 $3,833.49 $8,935.58 $12,078.29 $14,785.58 $8,145.51 $58,101.12

* The Hearing Review: Covid-19 and Hearing Aid SalesApr 28, 2020 | Health & Wellness, Industry News, Patient Fittings, Surveys & Statistics

$0.00

$10,000.00

$20,000.00

$30,000.00

$40,000.00

$50,000.00

$60,000.00

$70,000.00

$80,000.00

$90,000.00

April May June July August September October November December

Total Cash Out

Total Cash In

Month April May June July August September October November December Total Business Down 85% * 75% 65% 50% 30% 20% 10% 0% 0%% of Revenue 15% 35% 45% 75% 95% 100% 100% 105% 105%Normal Units 37 37 37 37 37 37 37 37 37 336Normal Revenue $83,333.33 $83,333.33 $83,333.33 $83,333.33 $83,333.33 $83,333.33 $83,333.33 $83,333.33 $83,333.33 $750,000.00Units 6 13 17 28 35 37 37 39 39 252Cash In $75,000.00 $29,166.67 $37,500.00 $62,500.00 $79,166.67 $83,333.33 $83,333.33 $87,500.00 $87,500.00 $625,000.00Cash Out $18,381.25 $43,397.92 $41,846.79 $52,718.03 $54,499.84 $57,731.09 $62,921.71 $68,547.76 $75,187.82 $475,232.21Difference $56,618.75 -$14,231.25 -$4,346.79 $9,781.97 $24,666.83 $25,602.24 $20,411.62 $18,952.24 $12,312.18 $149,767.79

* The Hearing Review: Covid-19 and Hearing Aid SalesApr 28, 2020 | Health & Wellness, Industry News, Patient Fittings, Surveys & Statistics

$0.00

$10,000.00

$20,000.00

$30,000.00

$40,000.00

$50,000.00

$60,000.00

$70,000.00

$80,000.00

$90,000.00

$100,000.00

April May June July August September October November December

Total Cash Out

Total Cash In

How Many Opportunities?

• 37 unit/month account needs nearly double the opportunities on average month

• How can you start to make the lost opportunities?• What is number of opportunities that your Providers

can complete daily and still have time for the necessary tasks on your Block Schedule (Daily Huddle, lunch, fittings, walk-in hours, service)?

• What is your Provider staffing plan?

Determining Your Opportunities

Units 6 13 17 28 35 37 37 39 39 252

Cash In $75,000.00 $29,166.67 $37,500.00 $62,500.00 $79,166.67 $83,333.33 $83,333.33 $87,500.00 $87,500.00 $625,000.00

Opportunities Created 25 30 47 62 64 64 69 69 430

Opportunities Conducted 18 23 35 47 48 48 52 52 322

Number of People Sold 7 9 14 19 19 19 21 21 128

Number of Units Sold 13 17 27 35 37 37 39 39 244

KPIs

Cancellation/No-Show Rate 29%

Aidable Rate 81%

Closure Rate 50%

Binaural Rate 90%

Return Rate 8%

Areas of FocusChecklist

Financial Checklist

q Cash Flow Analysis q Applied for Loan q P&L Analysis

Operational Checklist q Update ASAP with Comeback Planq Determine and Plan for Safety Precautionsq Catch-Up Analysisq Create/Update Block Schedule q Focus on Practice Management System

q Clean databaseq Create data entry SOPs for tracking/reporting

q Commit to Trackingq Address Recruiting Needs

Employee Checklist

q Offboard Employees q Train Employees q Communicate Consistently with Employees q Determine Reboarding Plan

Marketing and Patient Communication Checklist

q Update Annual Marketing Plan q Call (follow-up as needed via email)

q Tested Not Soldq Care After “Yes” q Out of Warranty (3 years)

q Update Digital Presence q Utilize Consult Marketing Collateral q Set up Online Schedulingq Set up Answering Service q Physician Referrals (call and email)q Prioritize Community Outreach

q Videos: virtual events, “how-to” q Utilize Telehealth

Questions

Questions on Consult YHN? Contact: Bill Connerton, National VP Sales at [email protected] or 401-743-9455