EXHIBIT (10.6)
[Logo] Letter of Agreement
This Agreement is made and entered into as of June 15, 1998, by and between
National Research Corporation (NRC), a Wisconsin corporation, and HEALTHSOUTH
Corporation ("Client"), for itself and on behalf of its affiliates and
subsidiaries.
National Research Corporation agrees to provide Client marketing research
services as specifically outlined below.
Project Specifications:
>Client is responsible for providing NRC patient discharge/visit data in a
magnetic readable format on a monthly basis (for all participating facilities).
>NRC is responsible for:
o Sample plan management for each facility.
o Use of personalized 8 by 14" questionnaire with integrated cover letter
(one logo in black ink).
o Translation of questionnaire into Spanish.
o Data collection using NRC's three-step mail methodology, with an estimated
response rate of 50 percent for inpatient and 40% for outpatient.
o Receiving of returned questionnaires, including return postage and printing
of the return envelopes.
o Mailing of comments on a monthly basis is included (faxing of urgent
comments on a daily basis).
o Scanning of returned questionnaires.
o Generation of Action Plan reports for the individual facilities, one
Corporate Summary report, divisional roll-up reports, and divisional
ranking reports on a quarterly basis.
o Conducting six on-site application workshops.
o Providing project booklets to all HEALTHSOUTH facilities upon joining the
satisfaction measurement system.
o Communication (reminder phone calls, memos, etc.) to facilities regarding
data tapes.
o Analysis and distribution of annual newsletter specific to each division.
o Development of a training video for facilities to use to review project
scope and research science.
o Ongoing communication, education, and coordination with facility staff.
o Ad hoc analyses typically upon request (if extensive time and materials are
requested, Client will be notified of additional fees prior to work
performed).
o Conducting a focus group with Client patients regarding the survey
instrument.
o Conducting a focus group with health care payors regarding important
satisfaction data used in making business decisions.
o Conducting a periodic users group meeting to share information and gather
input from key clients.
o Working extensively with Client Information Systems for proper facility
identification or to provide conversion for facility numbers to match
HEALTHSOUTH master facility numbering scheme.
NRC agrees that during the term of this Agreement and at any and all times
thereafter, it will hold the data provided by Client in strict confidence. In no
event will NRC divulge a patient or Client's identity in any report, publication
or other form of communication containing data collected in the course of
conducting the patient satisfaction measurement. NRC will utilize such data in
conjunction with its Patient Satisfaction Measurement Database and NRC shall be
entitled to retain copy of such data after the termination of this Agreement,
but subject to the continuing confidentiality provisions of this paragraph.
NRC agrees to store original patient questionnaires for a period of six months
at which time they will be destroyed. Data from these questionnaires will be
archived and stored electronically, thereby preserving the information from the
questionnaires. Comments, which are attached as additional sheets of paper are
not stored by NRC, but are passed on to the client facilities in their original
form. The exception to this is urgent comments, which are faxed daily, and the
original attached sheets of paper are stored with the original questionnaires.
This Agreement shall be effective for a three year data collection period,
effective as of January 1, 1998. With 120 days written notice by either party,
this contract may be overruled by a subsequent contract incorporating new
specifications and integration of additional measures.
If the tape sources for Client patient encounters are consolidated to fewer than
10 or equal to 1 per module (i.e. Rehab Hospital Inpatients, Medical Centers,
Outpatient Centers, Diagnostic Centers, Surgery Centers) than the price per
returned survey is reduced by *.
In return for NRC's services, Client agrees to pay NRC in accordance with the
following pricing model, which includes discounts for volume thresholds:
*
Client shall pay NRC on a quarterly basis. Amount to be invoiced quarterly each
year on January 31, April 30, July 31, and October 31. Invoice amounts will be
based on actual facility participation.
-----------------
* Indicates that material has been omitted and confidential treatment has
been requested therefor. All such omitted material has been filed
separately with the SEC pursuant to Rule 24b-2.
-2-
Payment to NRC is due in US Dollars within thirty (30) days of each invoice.
Interest shall accrue on any past due amount at the rate of one and one-half
percent (1 1/2%) per month until paid. Postal rate increases will be passed on
if applicable.
IN WITNESS WHEREOF, the parties, by and through their authorized
representatives, have executed this Agreement on the dates indicated below.
NATIONAL RESEARCH CORPORATION HEALTHSOUTH Corporation
Xxx XxxxxxXxxxx Xxxxxxx
Xxxxxxxxxx, XX 00000
By: /s/ Xxxxxxxxx Xxxxxxx By: /s/
Xxxxxxxxx Xxxxxxx
Contract Administrator Title:
Date: June 15, 1998 Date: 2/1/98
Purchase Order #:
Please return one signed copy of Agreement to National Research Corporation
