- 8 - First, the practice agreement provided for repayment. The practice agreement provided that petitioner, to the extent his income during any month of the term of the agreement exceeded $33,334, had to repay the hospital for guarantee payments previously made by the 10th day after the close of petitioner’s books for that month. Additionally, the practice agreement provided that the parties would agree upon terms for repayment of any balance due at the termination of the practice agreement. Furthermore, the practice agreement provided repayment terms in certain other instances, e.g., if control or ownership of the hospital was transferred or changed.3 3 In such instances, the practice agreement provided for repayment “in twenty-four (24) monthly installments of principal and interest calculated at the prevailing prime rate of interest published in the Wall Street Journal as of the day of termination”. Additionally, the obligation to repay was shown in the provisions for the early termination of the practice agreement. If the hospital terminated the practice agreement early in certain instances, the practice agreement provided that petitioner “shall not be obligated to repay Hospital any amounts paid on behalf of or reimbursed to Physician by Hospital”. We interpret this sentence as not requiring petitioner to repay the guarantee payments amounts if the hospital terminated the practice agreement early, and requiring petitioner to repay otherwise. This point was emphasized in the next sentence, which provided that if the hospital terminated the practice agreement early in other instances (e.g., petitioner was convicted on a felony or petitioner did not comply with the terms of the practice agreement), petitioner “will repay to Hospital, upon demand by Hospital, all sums of monies paid out to Physician to meet the income guarantee”.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 Next
Last modified: May 25, 2011