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16. Non-Compete. The Partners and RHS
hereby agree that during the term of this
Partnership, and for two years thereafter,
neither party, nor an affiliate of either
party, shall participate in the ownership,
management or development of a free-standing
surgical center which is within those
portions of San Bernardino and Riverside
Counties falling within a twenty (20) miles
radius of the Center unless authorization is
obtained from the other party. Further, the
Hospital shall not expand or promote its
present outpatient surgery program within the
Hospital. Notwithstanding the foregoing in
the event that either Partner acquires the
entire interest of the other Partner herein,
this Section 16 shall not apply thereafter to
the purchasing Partner or its affiliates.
17. Affiliated Status. To the extent
legally permissible, the Hospital agrees to
recognize the surgery center as an affiliate
for managed care contracting purposes (i.e.,
HMOs and PPOs).
18. New Services and Procedures.
(a) Exhibit B lists medical services
and procedures currently available at
the Center and those which the Partners
expect to be performed there in the near
future. SCA Centers acknowledges that
(1) RHS is an affiliate of the Hospital,
and (2) that the Hospital enjoys a
valuable reputation in the area for
providing quality medical care to
patients, (3) that the Hospital's
association with the Center through
RHS's participation in this Partnership
will benefit the Center and (4) that RHS
has an important interest in ensuring
that services and procedures performed
at the Center, or by an entity with
which RHS is associated by virtue of
this Partnership, within the Hospital's
service area are only such services and
procedures which are recognized by a
majority of the medical community as
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Last modified: May 25, 2011