Common use of Cancellation/Renegotiation Clause in Contracts

Cancellation/Renegotiation. The Commission reserves the right to cancel this Agreement, with cause, at any time. For the purposes of this Agreement, "with cause" includes, but is not limited to, failure by the hospital to provide quality needed services as contemplated by this Agreement as well as the shifting of hospital services to unregulated settings without complying with Commission regulations and policies. In addition, if the Hospital's total all payer or Medicare per capita expenditure trend is greater than the observed rate of increase in the per capita statewide expenditure, the HSCRC will conduct an evaluation. Based on this 6 Under this three year contract extension, it is recognized by the HSCRC and the Hospital that this TPR agreement is expected to produce savings that accrue to the benefit of the public by applying a revenue constraint that does not provide for volume growth trend except for the population and demographic adjustment defined in Appendix B, thereby producing a total cost trend that is expected to be lower than the trend experienced by other Maryland hospitals under the CPC. See attachment G Executive Summary of the TPR Program which describes the incentives, methodology, and shared savings of the program.