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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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