Contingent Discounts Sample Clauses

Contingent Discounts a. Discounts on one type of item (like supplies) may be contingent on the purchase of like-kind items (other supplies).

Contingent Discounts. Discounts on one type of item (like supplies) may be contingent on the purchase of like-kind items (other supplies). Example: discount on disposable gloves can be contingent on purchase of disposable hats Other than as set forth in Section 3, discounts on one type of item (supplies) may NOT be contingent on the purchase of another type of item (capital) if those items are reimbursed under different methodologies by Medicare. Example: discount on disposable gloves cannot be contingent on purchase of IV poles Free/Discounted Capital Equipment With Purchase of Supplies. The Hospital should not accept free/discounted capital equipment contingent on the purchase of supplies/expense items or vice versa. When vendors offer free capital equipment in exchange for purchasing the supplies used on the equipment, the Hospital may either purchase or lease the equipment under the following conditions: The Hospital will pay fair value for purchase or use of equipment in connection with the purchase of supplies. The value will be determined by obtaining the information from the vendor; or, if the vendor does not furnish the information, the Hospital will assign a value by determining what portion of the supply cost is attributed to funding the equipment and what the hospital’s purchase price for that equipment would be if it were purchased outright. The following process will be used: Request the vendor to break out the cost of purchasing/leasing the equipment from the supply cost. If the vendor agrees to provide the break-out information, include this information in the agreement and material forwarded to Hospital Finance. If the vendor refuses to break-out the price, forward the agreement proposal to Hospital Finance. Hospital Finance will assign a value to the purchase or lease of the equipment by determining what portion of the supply cost is attributed to funding the equipment and what the hospital’s purchase price for that equipment would be if it were purchased outright. The Hospital will ensure appropriate accounting treatment to reflect the purchase/use of the equipment and the purchase of the supplies. These guidelines only apply when the equipment is related to use of the supplies. If the capital equipment offered by the vendor for free is unrelated to the use of the supplies, we may not use the process set forth above and must negotiate a fair price with the vendor. We may negotiate discounts, but, the purchase of the equipment cannot be contingent on purchase ...