Termination Withhold from Capitation Sample Clauses
The 'Termination Withhold from Capitation' clause allows a payer to withhold a portion of capitation payments when a contract is terminated. In practice, this means that if a healthcare provider's agreement ends, the payer may retain a specified amount from the regular fixed payments (capitation) to cover any outstanding obligations, such as unresolved claims or overpayments. This clause helps ensure that financial risks associated with contract termination are managed and that the payer has recourse to recover funds if necessary.
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Termination Withhold from Capitation. In the event either party gives the other party notice of termination as set forth in this Article, FHS may, at its sole discretion, withhold up to one-third of each of the final three months of Capitation due PPG. If FHS exercises its option to transition HMO Members prior to the end of the termination notice period, FHS may withhold the entire last month’s Capitation. FHS may use such funds to offset any PPG liability to FHS or for payment of PPG Capitated Services on behalf of PPG. FHS shall pay PPG simple interest on all funds withheld as set forth in this Section at the interest rate per annum which shall be the lower of five percent (5%) or the prime interest rate, e.g. the base rate on corporate loans posted by at least seventy five percent (75%) of the nation’s thirty largest banks, as of the last business day in December of the prior contract year. PPG understands and agrees that a decision by FHS to withhold any Capitation shall not relieve PPG of its obligations to perform under this Agreement. All amounts withheld by FHS and all interest accrued on such amounts as set forth in this Section shall be included in any calculations regarding a final settlement between the parties. Notwithstanding any other provision of this Agreement, in the event FHS decides to withhold Capitation from PPG as set forth in this Section, FHS may, upon three days prior written notice to PPG, administer or oversee all or part of PPG Capitated Services on behalf of PPG. PPG agrees to fully cooperate with FHS in the administration of such claims, including providing all necessary information, and to take no action which may jeopardize the payment of such claims.