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    Health care contract

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    Health care contract

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    15 Ansichten4 Seiten

    Healthcare Contracts

    Hochgeladen von

    JoYCe
    Health care contract

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    © All Rights Reserved
    Als PDF herunterladen oder online auf Scribd lesen
    Markieren Sie unangemessene Inhalte
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    BUSINESS LAW Healthcare Contracts: Obligations and Responsibilities Uke areasof | ves nse ete ntry gon tially TRSA members ave ex Ganfctup front panded heir eakhare ence and whether Ccanbenefit both you ar providing NOG or ret series, Textile service _ thismarker sone that frecner ree wil continue vo expand More ate hop Companies syd uring homes te converting in-hose and healthcare laundries vo commercial undry services The fers cxrloion nthe munber af uaa clini Drovers ened for emand or le series Tene services comp dressing | recent years, th mathe for ten sr= terminology. the amount of dolls o volume ‘of business involved unless Both parties ave the same undetsunding of what the contact, means hete wil be 3 problem for both paces. [Ac onc time these wa phim a by ‘sing conising language, mieadingteranol- ‘ogy and other decepeive means, party could get an advange by geting 3 exomier to ign 5 contract hat wan one-sided The perpetrator ‘of such a scheme then thought tat he could profi fom this stution nies hat ence this marker Your best contract is one However, muskstplace rus ecogizethata good contact reine where there is a true meeting reste hive shown chat sch sary wont work, Inowdertoprowceter’ ofthe minds, Both you and Evenly ater poy ‘vennent When repir~ your customer have the same. learn tht he hs ben Inga comuact for actent inthe hehe indy, understanding of the terms ‘secived and will do ev- erything in his power not heteare some baiepoins Of thecontract and what perform his sbligntons. roomier obligations and responsi each of you have accepted, cil #2 losose propos 1. MEETING OF THE Mins Every contracts ar agreement between two pais, wherein each side apres to aceeptcer- ‘ain riponsibilsesand in gurn obtain certain ‘benef, Baie contact a describes a con~ tact a3 “meeting of the minds"The doct- ment chat set frehthit meeting ofthe minds is dhe coneract The contac explains whit each party agrees te do and what benefits each purty wil provide tthe other. Contacts wed to be single one-pige document, Today 2 contract with re acue-care hospital may te many pages a length However, eget ofthe number of pages the complexity ofthe ies Ligon may resale The Yourbert contacts one where theresa trae | meeting of the minds. Both you and your eu ‘omer have the ame understanding of dhe con- trace terms and what obligation and rsponsi- bilies each of you have accepted With than ‘mind let look at specific contract clauses. 2. FRICE “There are many ways to pice textile services, ‘You can price by the piece oF you can price by the pound. Ifyou pice by the pound, ou ‘an price by clea, oF ole weight You ca count pies, or you can price by piece bated reese ‘on an agreed-upon understanding of how dhe numberof pieces proceed will be computed. Whatever method you us. make sre dat your easter undersands exactly how she price of the services is going tobe computed before you str billing the accoune. 3. EVERGREEN PROVISIONS. Some sates permit “Evergreen” clauses contrac Under an Evergreen ‘aus, at the end of dhe contrat term, whether iS one, thee Fe years, of ‘ore, the contract automatically e- news unl either pasty gives noice ofintent not to renew within aime petiod specified inthe conuact. For cxample ifthe customer doesnt pro ‘ide the service provider with writen ‘noses thatthe castonterdoein’ intend to renew within 60 or 90 ays fom the annivenay date ofthe contrac the contract automaticaly renewed for another term that my be the sme length 2 the original a " teem. This ype of contact provision is called an Evergren clase In some sates such as New Yor, the we of Evergreen clases has been held to be inst public policy Thar means such Clauses arent enforceable In othce sates, they are enforce, Many scute-care hospital won’ accept Evergeee cases, but many smaller sccounts will accep them You should ‘raat whether or not you wane Eveagreen cases in your contact 4. LOST OR DAMAGED GOODS ‘Your contri should ado he ‘question of who's responsible for loxe cr damaged goods [the custome is sesponsble, exe what responsibly does the eatomer have? Ifthe ci tomer gets 10 sheets and returns 95 shes, how much docs the easomer ‘owe the texte sevice company for the mising sheet? Whats che formla for secing the valve of os goods? IF the rexie service company I going to hold the customer responsible for paying for lost merchand ete contract shold esablih the tem by ‘which the patie an compe the secu amount owed The sre holds teue for damaged merchandie Who responsible for damaged merhandive and what exactly i that export? Ifthe cutomer recurs 2 shes with ‘smal ea, cathe textile services company repair the ear and keep the shee inservice? What about a hese that torn aoa in hal Whois responsible and wha cachpartys | responsiblity? The contract shoal des thee es, 5. BUY RACK CLAUSES Some contac include provisions hat require customers caneings contract o buy back the ress pro- ‘ded by the ext services company based ona buy back schedule pro- vided in che ontrack A an sample, the conse might provide ha ior a] BUSINESS LAW any reson the customer decides t0 ‘ance the contrac prio t the exp ration dt, the eustomess obligated to purchase all he ext parched bythe textile services cempany for tse in the contract Bee on a pice schedole The price schedule might include X% ofthe seta cou ofthe goed during the fet ya of the conuace, Yh oF the act oe of the goods ding the second year ofthe conace and 2% ofthe ctl cost ofthe goods during the third yer of the consace The buy tack provision should alo ake into account the time the goods were actualy in service As sn example i goods wee placed in service inthe fist year af the contact snd the conract wis canceled daring the third yen, the good would ave 2 cera tle Ifthe good had been ced in service dringthe second year ofthe contact sn the contact ‘was canceled during thetic yt, the goods would have greater sue Some customers wil ajett the use of buy back clases: thes wil accept them. Whether your coaract ends ‘up witha buy back age i3 mt ter for you to determine 2 busines ‘pa major hospital accunt you need fo make a huge invesesae in nent Hive you protected thi inven? 68. LIQUIDATED OAMAGES Mos sates will permit the we of 1 Tiguidted damages ce in 3 contract. Under sligidted damages clase the pars agre that in che even tha the eustomerbreacher the oneact the customer wil be able to py the ene services supplier SX in the form ofiquidsed damages ad nota penal Liqidted damn- ges mu be computed with some Signeant tein to an etimate ofthe economic lo that wil be incurred. Obviously» texte services company hasan invesmene in inventory when ‘tse up an account Ifthat inven tory cant be used ebewhere, when a contac is breached, he inven- tory investment is stl the same ‘vay the company has other expenses incurred in exablishing an account, Jnclading marketing ining rose people and erie representa, nd providing s cerain amoune of pant espacty (inthe ee flange contac), hat wil no be Filed wath other busines Al ofthese fases can be factored inca determining lgui= ated damages. Cours are not fond of Tiquidaed-damages clases and many When a customer wants to get cut ofa contract, the common complaint that there are service problems. cour won't enforce such caus, ifthey believe they ae uneason- able A liquidated damages dase ‘ha. provides at ae ene services ‘company damages ae equal to the Fal revene that would hve been generated during he fll erm ofthe contact probably wont be enforced if the customer terminates the contact after six months of 5-year contact. "The court could find the amount of dbmages unretonable Liguidated dbnage chases ae enforced based on 2 judge’ iterprecions of ate ave Each texte services company should examine che aw in ech ofthe water in hich ic operates in order to deter- mine an effective liquidated damages ‘awe form, ie company lees to nce sch a clases contact 7. SERVICE PROBLEMS When a estomer wans to ge ou of 2 contac the common comnpaine i ‘hat chere are rice problems, Either daliveres ae no made on ime of dalveres ae incomplete. Textiles s2e not popely washed, The textile seeviee company doesnot provide sdequat ventory The list i ends Tn many stances, thera eon simple Tk eastomer belive hat it can obaina lower price ekewhere and is sing the "service problem" at fan exc lim eat che tent secvices company has breached the contact. Many textile envce cone ‘mses hats a provision that reguite in the even thatthe customer believes thatthe txae evics company as ‘breached the contract o it providing inadequate sevice the cuonier i required 0 nosy the tele services

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