Monday, November 24, 2008

Setting Up National/Regional Account Collections

Background: Jill Chioino is working with a national client. She will perform the billing, client services and management of the account. The account will require Quest Diagnostics collection services and a BAT. In order to properly structure the bid, Jill needed to know how to price the service to the client and what Quest will charge for collections.

Q: What does Quest charge for collections and how is the billing handled?

A: In general, if an AccuDiagnostics franchisee’s client uses a Quest facility and the client’s employee brings in a completed Chain of Custody form, Quest will bill the franchisee $10.00 for the collection. If the franchisee uses a Quest Preferred Collection Site and the client’s employee brings in a completed Chain of Custody form, Quest will bill the franchisee $15.00 for the collection.

This pricing information is used when a franchisee is setting up a national or regional account and handling the logistics of billing, customer service and setting up collection sites for the client. The franchisee will bill the client for whatever their agreement is for the collections and lab testing services. Quest will bill the franchisee $10.00 for collections at a Quest location, plus the cost of the lab drug test, or $15.00 for collections at a Preferred Collection Site, plus the cost of the lab drug test.

Example: Franchisee signs ABC Widget Company as a client. ABC has clients in CA, NV, UT and AZ. The franchisee uses Quest for collections and lab drug testing. Three collection sites are Quest locations and seven are Preferred Quest Collection sites that the client is directed to use for getting drug tests done.

When ABC’s employees bring in completed Quest Chain of Custody forms to any Quest location or Preferred Collection site to obtain a drug test, Quest will bill the franchisee $10.00 for using their facility, plus the cost of the lab drug test and $15.00 for using Preferred Collection Site collection, plus the cost of the lab drug test. When Quest is paid for collections from the franchisee, Quest pays the Preferred Collection Site for the collection services.

The Franchisee pays Quest or the Preferred Collection Site for the collection and Quest for the lab drug test. The Franchisee then bills the client whatever the negotiated price is for the collection services and the lab drug test.

The franchisee can also negotiate directly with a TPA or another AccuDiagnostics location for collections services.