REDLANDS SURGICAL SERVICES - Page 21




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          Committee.7  SCA Management is authorized to enter into contracts           
          relating to the affairs of the Surgery Center, subject to certain           
          exceptions, requiring express authorization of the Operating                
          Partnership.  These exceptions include lease or contractual                 
          obligations requiring payments in excess of $50,000 in any 12-              
          month period, and obligations to a related party in excess of               
          $5,000.                                                                     
               The management contract states that SCA Management is                  
          authorized to provide services to the Operating Partnership                 
          (referred to as “the Owner” in the following quoted provisions),            
          as follows:                                                                 
                              II.  MANAGEMENT SERVICES                                
                    1.   Subject to the provisions of Article I, the                  
               Manager will render all services, direction, advice,                   
               supervision and assistance in the operation of the Center,             
               as necessary, including, but not in any way limited to, the            
               following:                                                             
                         A.  Maintaining the accreditation of the Center              
                    with the proper agencies and insurance companies;                 
                         B.  Arranging for the purchase by the Owner of               
                    hazard, liability, professional and other necessary               
                    insurance coverage for the Center; provided, however,             
                    that the physicians practicing in the Center shall                
                    obtain their own malpractice insurance;                           
                         C.  Employing, supervising, directing, leasing and           
                    discharging on behalf of the Owner, all non-physician             
                    personnel performing services at the Center, including            


               7 Under paragraph 9.6 of the Operating Partnership                     
          agreement, the general partner (i.e., the General Partnership)              
          determines what are medical standards and policies.                         




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Last modified: May 25, 2011