|
1. RECITALS
<br /> The Parties agree that the recitals above are true and correct, and made a part of this
<br /> Agreement, namely that the City of San Leandro shall provide the aforementioned financial
<br /> subsidy in the form of a payment directly to AHS for the specific purpose of subsidizing an
<br /> emergency department and acute inpatient services at the San Leandro Hospital for a period of
<br /> not less than three years.
<br /> 2. GOVERNANCE,OPERATION AND MANAGEMENT OF THE HOSPITAL
<br /> Upon its acquisition of the Hospital,AHS shall take over possession, use and control of
<br /> the Hospital, and shall thereupon and thereafter provide the governance and all necessary
<br /> management, administration, operation, maintenance, supervision and oversight of the Hospital.
<br /> Accordingly, AHS shall have the sole and exclusive power and control over all matters relating
<br /> to the management,direction, control,operation, licensure, and maintenance of the Hospital.
<br /> The Parties hereto acknowledge and agree that by virtue of this Agreement,the City shall have
<br /> no liability or responsibility for, and shall have no rights with respect to or control over,the
<br /> management, administration,operation, maintenance, supervision or oversight of the Hospital,
<br /> including without limitation (i) determining the Hospital's capital and operating budgets and its
<br /> financial needs, (ii)determining the Hospital's pricing and reimbursement policies and practices,
<br /> its charity care policies and practices, the services to be provided at the Hospital,the rates and
<br /> charges for such services,and all other fiscal policies and procedures underlying the financial
<br /> and strategic operations of the Hospital, (iii)making all personnel decisions, including,without
<br /> limitation. decisions involving the negotiation of, and"meet&confer" issues specified in, labor
<br /> agreements, and other recruitment, hiring, compensation, discipline and termination decisions,
<br /> and(iv)purchasing all pharmaceuticals, food, beverages, medical, office, cleaning and other
<br /> supplies, equipment,furniture and furnishings, as well as all services required for the general
<br /> operation and maintenance of the Hospital. The AHS Board may delegate responsibility for the
<br /> day-to-day operations of the Hospital in its sole discretion, including without limitation to the
<br /> Chief Executive Officer and management team of AHS. The Hospital shall be the "provider"
<br /> within the meaning of all third party contracts for hospital services provided at San Leandro
<br /> Hospital, including, without limitation,contracts with all state and federal health care programs
<br /> (e.g., Medicare, Medi-Cal, Tri-Care). The AHS Board shall be the governing body of the
<br /> Hospital and shall exercise all related rights, powers and privileges related thereto to the fullest
<br /> extent permitted by law.
<br /> 3. CITY SUPPORT PAYMENTS
<br /> (a) Support Payments. On or before June 30,2014 and on or before the 30th day
<br /> of June in each year while this Agreement is in effect,commencing on June 30, 2014 (the
<br /> "Support Payment Dates")the City shall pay to AHS one million dollars and zero cents
<br /> ($1,000,000.00)(the"Support Payments")for the specific purpose of subsidizing an emergency
<br /> department and acute inpatient services at the Hospital. City's payment of the subsidy is subject
<br /> to all State laws and limitations imposed upon Charter Cities, including but not limited to the
<br /> Gann limit, and California Constitution Article XVI, Section 18.
<br /> 2
<br />
|