51-96 Lakewood Hosp Lease - Laserfiche WebLink

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EXHIBIT B RESCUE SQUAD AND PARAMEDIC SERVICES The Lessee shall operate the Rescue Squad and Paramedic Services ("Ambulance Services") for the residents of the City, using ambulances purchased by the City. The Lessee shall bill and use best efforts to collect from third party payors and other parties, when applicable and/or directed by the City. The City shall reimburse the Lessee the costs associated with providing Ambulance Services (the "Costs"). The Costs shall be offset by payments and reimbursement from other parties. The City has the right to direct the Lessee on the amount to charge for Ambulance Services. The Costs associated with providing Ambulance Services shall be established using Medicare cost allocation principles, with the exception of depreciation expense related to building and ambulance vehicles which shall be excluded from Costs charged to the City. The Lessee agrees to provide the City with budgeted Costs to be expended for the following year on or before November I of the prior year. The City agrees to reimburse the Lessee such budgeted Costs on a quarterly basis. The Lessee agrees to complete an annual reconciliation of actual and budgeted Costs on or before Sanuary 31 of the following year. Any adjusted Costs arising from the reconciliation shall be paid by the appropriate party on or before March 15. If the City fails to reimburse the Lessee on or before March 15, Lessee may deduct such Costs from its Additional Payments, pursuant to Section 3.2(a) of this Lease. However, if the City has notified the Lessee of specific disputed Costs, the Lessee shall not deduct these disputed Costs from its Additional Payments until such dispute is resolved by the parties. The City shall have the right to conduct an annual independent audit of the Costs. The City shall be responsible for all'costs associated with the performance of such audit. The Lessee shall reimburse the City for the cost of the maintenance services of the ambulances provided by the City to the Lessee. In consideration for the City paying the Costs of providing Ambulance Services to the City's residents, the Lessee shall not bill City residents for use of Ambulance Services to the extent such arrangement does not violate controlling Medicare Regulations. Such arrangement shall be controlling unless the Lessee receives further direction from the City. The Lessee and the City shall establish educational programs to promote cost-effective utilization of Ambulance Services by City residents. The Lessee agrees that it shall not change the manner in which Ambulance Services are delivered without approval of the City. B-1