From the August 2016 issue of HealthCare Business News magazine
• Termination Clause: All contracts should have a termination clause that allows the facility to terminate the entire agreement or terminate coverage of specific items within that contract. Clauses that impose a penalty for termination should be deleted.
10. Is it possible to get out of a service contract?
It is difficult to cancel a service contract, except in cases in which there is a breach of the contract. However, language should be included in the initial contract to allow the facility to review the cost, quality of service and terms on an annual basis. This can help facilities adjust rates in instances when they find the equipment has low failure or use rates, and when there are issues with the vendor’s performance.
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About the authors: Katie Regan, MA, is the clinical publication manager at MD Buyline and has over seven years of clinical research and medical writing experience. Tom Watson, BS, RCVT, is a clinical analyst at MD Buyline with over 40 years of experience in the field of cardiovascular medicine. Kevin Hodges is the director of operations for MD Buyline and has over 20 years of experience helping hospitals develop purchasing strategies to maximize their savings.Back to HCB News
