While packages and memberships are appealing to patients as they often receive a discounted rate for purchasing sessions in advance, we also want to make sure that packages are equally as beneficial for your providers. This guide will review how staff compensation works alongside Jane’s packages feature.
Feel free to review our guides on Working with Income Categories in case you need a quick refresher on how staff compensation works in Jane.
A good question to ask yourself before we get started is:
🌟 How do you plan to compensate your practitioner for a package or membership sale and redeemed sessions?
- Compensate Per Session: I would like to compensate my practitioner(s) when a patient redeems their package or membership for an appointment.
- Compensate for Package/Membership Upfront: I want to compensate my practitioner(s) upfront when the package or membership is initially purchased.
About Package and Membership Compensation Settings
Configuring the Eligible Items section of your package or membership determines how staff are paid when a package is purchased or redeemed.
Packages and Memberships are unique in that the amount that the patient pays per session may not necessarily equate to the compensation provided to the staff for that session.
Package Example
A physiotherapy clinic charges their patients $60 for a standard follow-up visit. They also offer a package of 5 sessions if the patient pays $250 upfront— which comes to a discounted $50 per session. After paying upfront, each time the patient attends their session, they are not required to pay any additional fee ($0 Additional Charge). The clinic owner may wish to value any subsequent visits covered by a package at its normal $60 rate. Alternatively, the clinic owner may wish to value these visits at their after-discount rate, $50.
Membership Example
A medical aesthetics clinic offers treatments such as Botox, dermal fillers and laser skin resurfacing. Many of these treatments require regular maintenance to achieve and sustain optimal results. The prices for subsequent treatments are standard, but they also offer a monthly membership of $99/month. Once the patient pays for the membership every month, each subsequent service they come in for does not require an additional fee. The clinic has a choice of setting the value of each service at their regular or the discounted value of service.
For both a package and a membership, the Staff Compensation field is setting the 100% commission value of this particular treatment. Once this is set, a staff member will receive compensation based on the commission rate set for the income category of the Eligible Item.
The default treatment price— which is set up under the Settings tab > Treatments, Classes & Group Appointments area — will be listed next to the treatment price for easy reference. There are a few different ways this Staff Compensation value can be set:
- Default Treatment Price: Set staff compensation to default treatment price (in the example above, this is the case for the Initial Assessment at $75)
- After Discount Value: Set staff compensation to discounted value per treatment (in the example above, this is the case for the Subsequent treatment, where the treatment price is usually $60, but staff compensation is set to $50)
- No Compensation for Individual Sessions: Set compensation to $0 (see example below)
You may wish to set the staff compensation per individual appointment to $0 if you intend to compensate your staff member for the entire upfront package or membership fee, rather than on a per-appointment basis.
Now that we’ve got that covered, let’s take a look at a couple of different compensation styles.
Compensate Per Session
📍 Characteristics:
- No staff member in particular is compensated for the upfront sale of the package or membership.
- A staff member is paid by the session, as the patient comes in.
- Can accommodate multiple staff members who provide eligible treatments covered by the package or membership.
- If a patient does not fully use their package or membership, any unredeemed uses will go towards the general clinic funds.
If you are looking to compensate your practitioners when a patient redeems their package or membership for an appointment, you will want to set the Staff Compensation field to a non-zero value. This may be the same value as the default treatment price, or a lesser value like the after-discount rate.
In the example below, we’ve set our package so that every time a patient redeems a package use for a 30 minute Subsequent Treatment, our staff’s compensation will be based off of a $50 rate. This also applies when you’re setting up the Eligible Items within a Membership.
When a package or a membership is sold, no staff member will receive compensation for the initial sale. This is important so that we don’t accidentally compensate staff twice for the same package or membership.
If you are working with the Invoiced (Accrual) version of the Compensation Report, a line item will appear once you arrive an appointment that is covered by a package or a membership. The adjusted amount will reflect the value that was set in the Staff Compensation field back in the Package Settings.
If you are working with the Collected (Cash) version of the Compensation Report, a line item will appear on the report as soon as the Additional Charge portion has been paid. In many cases, the “Additional Charge” portion will be $0.00, so no further payment is required and the appointment will show up as a line item upon arrival as well. Here is an example of what this line item would look like.
If the staff member is on a certain commission schedule, this income will show up under the income category corresponding to that appointment type in the Commissions section of the report.
Compensate for Package or Membership Upfront
📍 Characteristics:
- One staff member is compensated for the entire sale of the package or membership when the initial payment is received.
- Only a single staff member will be compensated, even if the package or membership includes treatments offered by multiple staff members.
- It does not matter if a patient does not fully use their package, the staff member has already been paid in full upfront.
If you are looking to compensate your practitioners when a patient pays for their package or membership upfront, you will likely want to set the Staff Compensation field of the package or membership to $0. This is to ensure that we don’t compensate a provider multiple times for the same sale.
In the example below, we’ve set our package so that every time a patient redeems a package use for a 30 minute Subsequent Treatment, our staff’s compensation will be based off of a $0 rate. The same can be done when setting up the compensation for a membership.
When selling the package to your patient upfront, in this case, you will want to ensure that you assign a staff member. This means that the staff member will receive compensation for the sale of the package upfront. Rather, the sale of each session can be left unassigned – since the practitioner has already been compensated for the package.
During the process of finalizing a membership, you won’t have the option to assign a staff member right away. You’ll need to head over to Billing within the patient’s profile, and under Purchases click on View to the right of the membership invoice.
Next, you’ll want to click on the Add Staff Member button within the Staff Member receiving compensation section.
Note📝: For memberships set to bill a patient automatically every billing cycle, Jane will not assign new membership invoices to the same staff member. If a specific staff member should be compensated upfront for each billing cycle, staff will want to make sure to assign the staff member manually using the steps mentioned above.
If you are working with the Invoiced (Accrual) version of the Compensation Report, a line item will appear once you have invoiced and assigned a staff member to the package or membership sale.
If you are working with the Collected (Cash) version of the Compensation Report, a line item will appear on the report as soon as the package or membership has been paid. Here is an example of what this line item would look like on the report:
If the staff member is on a certain commission schedule, this income will show up under the income category corresponding to that package or membership type in the Commissions section of the report.
Anytime the package or membership is used in the future, since we had set the Staff Compensation rate to be based off of a $0 value, the staff member will receive no additional compensation for the individual appointments.
If you have any further questions about working with packages, memberships and compensating your staff members, don’t hesitate to contact us!