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k. Approving any obligations for repairs, equipment,
additions, or betterments to the Surgery Center;
l. Approving any lease or contractual obligations
requiring payments in excess of $50,000 in the aggregate for
any twelve-month period or those obligations not in the
ordinary course of business; and
m. Approving any obligation to a related party in
excess of $5,000.
Quality Assurance Agreement
Paragraph 13 of the General Partnership agreement, supra,
requires SCA Management to enter into a quality assurance
agreement with RHS whereby RHS will agree to perform “certain
managerial and supervisory quality assurance duties” in
connection with the operation of the Surgery Center. The General
Partnership agreement provides that the quality assurance
agreement is to continue from year to year unless terminated by
either of the parties.
Effective April 30, 1990, SCA Management and RHS entered
into a quality assurance agreement. The agreement states that
SCA Management “retains RHS for the purpose of the management and
supervision of quality assurance programs for the [Surgery]
Center and [to] oversee its affairs, and for providing additional
services as SCA [Management] may reasonably request.”
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