Partnership Tiers & Benefits

Tier Benefit	Tier 3 (< $2,500 Quarterly Spend)	Tier 2 ($2,501 - $7,499 Quarterly Spend)	Tier 1 ($7,500+ Quarterly Spend)
Shipping Discount	2.0%	3.0%	4.0%
Facility Logistics & Order Support Fee (for orders < $5,000)	3.5% / $85 (whichever is greater)	3.0% / $85 (whichever is greater)	2.5% / $85 (whichever is greater)
Facility Logistics & Order Support Fee (for orders > $5,000)	2.5%	2.0%	1.5%
Order Processing	Standard (Up to 24 business hours)	Standard (Up to 24 business hours)	Priority Processing (4-12 business hours)
Payment Terms Eligibility	Prepaid (Standard)	Custom Net 15 / Net 30 Eligible (Subject to credit approval)	Custom Net 30 / Net 45 Eligible (Subject to credit approval)
Annual Volume Rebate Credit	N/A	0.5% Annual Statement Credit	1.0% Annual Statement Credit

 

Schedule 2: Multi-Location (3-10) Facilities

 *Institutional buyers operating with greater than 10 facilities receive personalized scheduling partnership benefits and are governed under separate tier structures.

How Program Tiers Work

Spend Calculation Basis:

Partnership tiers across both Schedule 1 and Schedule 2 are evaluated based on total Reconciled Net Collected Product Revenue generated within each calendar quarter. 

Eligible spend explicitly EXCLUDES:

• Actual freight, parcel, and LTL shipping charges
• Facility Logistics & Order Support Fees billed to the account
• State, local, or federal taxes and governmental assessments
• Returned product credits, restocking fee adjustments, damaged goods allowances, or order cancellations
• Uncollected invoice balances, open quote requests, orders in transit awaiting delivery confirmation, or extended payment term balances remaining unpaid at the time of audit

• Carrier-assessed accessorial fees (e.g., liftgate, inside delivery, driver assist) and administrative fees
  
  

Multi-Location Aggregation Rules

For organizations operating under Schedule 2 (3–10 locations), purchasing volume across all authorized facility locations registered under the same corporate Tax ID or Purchasing Agreement is aggregated into a single organizational spend total. Individual locations under a master agreement share the aggregated tier status for shipping discounts, fee structures, and priority processing. 

Audit Cycles & Evaluation Timelines

Tier standings, service level agreements, payment term eligibility, and volume rebate credits are governed by the following three distinct audit cycles:

Immediate Tier Upgrades

Tier upgrades execute immediately upon cash reconciliation of any qualifying order that pushes the purchasing organization's cumulative quarterly spend into a higher tier bracket. Once reconciled, the upgraded tier status instantly unlocks reduced Facility Logistics & Order Support Fees, higher shipping discounts, and elevated quote SLAs for all subsequent orders placed within that current quarter. 

Quarterly Maintenance Audits & Downgrades

Tier standings are audited starting on the first calendar day of each quarter (January 1, April 1, July 1, and October 1) based on reconciled product spend from the preceding calendar quarter: 

• Maintaining Tier: If an account maintains or exceeds its spend threshold, its tier status carries forward into the new quarter.
• Tier Adjustment: If an account falls below its spend threshold, its tier status adjusts to match its actual reconciled spend for the new quarter.

Annual Volume Rebate Audit & Issuance Cycle

Annual Volume Rebates earned under Schedule 1 or Schedule 2 are governed by a formal annual reconciliation process: 

• Audit Period & Scope: Audits occur during the month of January following the close of the calendar year ending December 31. The audit evaluates total Reconciled Net Collected Product Revenue received and settled between January 1 and December 31 of the preceding year.
• Cut-Off Conditions: Orders submitted but unfulfilled, orders in transit, open Net Terms balances awaiting payment, disputed freight charges, and uncollected invoices as of 11:59 PM EST on December 31 are strictly excluded from the annual calculation. Uncollected balances cannot be retroactively credited to a prior year's rebate once settled in a subsequent year.
• Credit Issuance Window: Following the completion of the January audit, qualifying rebate credits will be issued to eligible facility accounts during Quarter 1 (Q1).
• Disbursement: Rebates are issued strictly as a corporate account credit applied to the purchasing entity’s profile for future product inventory purchases. Account credits carry no cash value and expire 12 months from the date of issuance.
• Account Standing Requirement: TMS reserves the right to withhold, suspend, or forfeit rebate distribution to any account carrying past-due balances, open invoice disputes, or active breaches of agreement at the time of Q1 distribution until all financial and contractual obligations are cured in full.

Regulatory Disclosures & Ethical Compliance

Regulatory Compliance Statement (42 C.F.R. § 1001.952(h)): 

All tiered pricing adjustments, reduced Facility Logistics & Order Support Fees, shipping discounts, and annual volume rebate credits represent bona fide price reductions. Purchasing facilities are advised that federal regulations (42 C.F.R. § 1001.952(h)) may require the facility to report net prices, discounts, fee reductions, and rebates on cost reports or claims submitted to Medicare, Medicaid, or other state or federal healthcare programs. 

Remuneration Policy

All financial terms, credits, discounts, and fee reductions are extended exclusively to the legal corporate entity operating the purchasing facility. Under no circumstances shall any rebate, discount, credit, fee concession, gift, or remuneration be paid, issued, transferred, or diverted to any individual physician, clinic employee, purchasing agent, corporate officer, or representative. Any attempt by an individual to solicit personal remuneration, gifts, or indirect compensation in connection with commercial transactions through TMS is a violation of federal and state commercial bribery and anti-kickback laws and will result in immediate termination of account privileges, forfeiture of pending rebates, and potential regulatory reporting.