Exhibit 10.14
AGREEMENT
WHEREAS, Catholic Healthcare Network of Long Island, Inc. ("CHNLI")
entered into a certain Stock Subscription and Purchase Agreement with Long
Island Physician Holdings Corporation ("LIPHC"), dated October 11, 1995, which
agreements set forth certain understandings relating to their agreements with
each other and their respective relationships and financial obligations to MDNY
Healthcare; and
WHEREAS, among the provisions of these agreements were certain
understandings related to risk-sharing that affected CHNLI and LIPHC, contained
in section 8.5 of the Stock Subscription and Purchase Agreement; and
WHEREAS, the parties have agreed to certain risk-sharing obligations
relating specifically to a hospital risk pool, by which Catholic Health Services
of Long Island, ("CHS"), an affiliate of CHNLI, would bear certain obligations
for deficits incurred by said pool and be entitled to receive certain surpluses
generated by such pool.
BE IT THEREFORE AGREED THAT:
From on and after January 1, 1999, CHS shall be liable for the payment of
one third (1/3) of the deficit that occurs in each year (a "Base Year") of the
hospital risk pool (the "Pool" relating to MDNY's Nassau and Suffolk County
Commercial Enrollees. The amount of the foregoing payment, if any, shall be
derived by evaluating the net financial position of the Pool three years after
the termination of each Base year, giving credit for any surpluses, but not
deducting for any deficits, which occurred in the intervening years so that if
any CHS deficit exists in the Pool in a Base Year which is not cured by CHS'
subsequent surpluses, CHS will be required to pay off the amount of such Base
year deficit by the beginning of the fourth year thereafter. (By way of
illustration, any CHS liability as the result of the net financial position of
the Pool in Base Year one will be computed by offsetting such liability against
the financial position of the Pool at the beginning of the fourth year
thereafter, giving credit for any surpluses, but not deducting for any deficits,
which occurred in years two and three. Similarly, any CHS liability as the
result of the net financial position of the Pool in Base Year two will be
computed by offsetting such liability against the financial position of the Pool
in Base Year two will be computed by offsetting such liability against the
financial position of the Pool at the beginning of the fifth year thereafter,
giving credit for any surpluses, but not deducting for any deficits, which
occurred in the years three and four, and so on.)
IN WITNESS WHEREOF, the parties have executed this Agreement on the day
and date set forth below.
MDNY HEALTHCARE, INC.
Date: By:
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CATHOLIC HEALTH SERVICES OF LONG ISLAND
Date: 8/13/99 By: /s/ Xxxx F. X. Xxxxxx
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