Antonio and Joyce Rosario - Page 8




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               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”.                                                 






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