Exhibit 10.1
EMPLOYMENT AGREEMENT
--------------------
THIS AGREEMENT, made and entered into this lst day of January, 1995,
by and between KEYSTONE REHABILITATION SYSTEMS, INC., d/b/a KEYSTONE
REHABILITATION SYSTEMS, a Pennsylvania corporation, with its principal executive
offices located at The Atrium, 665 Philadelphia Street, P. O. Xxx 0000, Xxxxxxx,
Xxxxxxxxxxxx, 00000 (hereinafter referred to as "KRS");
AND
XXXXX XXXXXXXXX, of 000 Xxxx Xxx Xxxx, Xxxxxxx, Xxxxxxxxxxxx, 00000
(hereinafter referred to as "PT").
PART I - RECITALS
-----------------
1.01 WHEREAS, all employees providing services on behalf of Keystone
Rehabilitation Systems, Inc. or subsidiary companies are employed by
KRS; and
1.02 WHEREAS, KRS or other subsidiary corporations of Keystone
Rehabilitation Systems, Inc. are the owners and/or operators of
outpatient facilities in several states which provide outpatient
physical therapy and rehabilitation services to patients on site, as
well as physical therapy and rehabilitation services by contract
to other institutions and agencies which provide physical therapy and
rehabilitation services; and
1.03 WHEREAS, PT has the managerial and clinical capabilities to manage and
provide direct services to facilities providing physical therapy and
rehabilitation services; and
1.04 WHEREAS, the cooperation of KRS and PT will permit comprehensive,
economical and lawful services to be rendered to patients seeking such
services at KRS, as well as patients of other institutions and
agencies currently under contract with KRS or other Keystone
Rehabilitation Systems, Inc.'s subsidiary corporations in Indiana
Borough and/or White Township, Pennsylvania, and other mutually
agreeable areas; and
1.05 WHEREAS, KRS therefore desires to provide through employment the
necessary rehabilitation management and clinical services for its
patients, as well as the institutions and/or agencies under contract
with KRS or other subsidiary corporations of Keystone Rehabilitation
Systems, Inc., from PT in Indiana Borough and/or White Township,
Pennsylvania; and
1.06 WHEREAS, PT, therefore desires to be employed by KRS for the
purposes of providing comprehensive physical therapy
and rehabilitation management to patients and institutions seeking
such services at KRS and/or other institutions and/or agencies where
KRS or other Keystone Rehabilitation Systems' subsidiary corporations
provide physical therapy and other rehabilitation services by
contract.
1.07 WHEREAS, immediately prior to this Employment Agreement, PT owned a
twenty-five (25%) percent interest in a general partnership that owned
KRS of Indiana; and
1.08 WHEREAS, this Employment Agreement has been designed as a replacement
for the General Partnership Agreement; and
1.09 WHEREAS, the purpose behind the transition of the General Partnership
Agreement into an Employment Agreement was and is to maximize third
party reimbursement and streamline accounting; and
1.10 WHEREAS, the intent of both parties is to make this Employment
Agreement address issues raised in the General Partnership Agreement
in order that neither party loses any rights or privileges enjoyed in
the General Partnership Agreement that immediately preceded this
Employment Agreement; and
1.11 WHEREAS, the previously mentioned General Partnership Agreement was
developed for the purposes of PT
establishing a general partnership with Xxxxxx X. Xxxxxx, the sole
stockholder of KRS, and now agree that if Xxxxxx X. Xxxxxx does not
own controlling interest in KRS at any time in the future,, this
Employment Agreement will address the options of the PT in the event
he/she wishes not to be a partner of the new stockholder of KRS, or
wishes to change his/her employment with the new stockholder; and
1.12 WHEREAS, the options of PT mentioned in 1.11 above are addressed in
5.04 of this Employment Agreement.
THEREFORE, in consideration of the mutual promises contained herein
and intending to be legally bound hereby, the parties agree as follows:
PART II - SERVICES PROVIDED BY PT
---------------------------------
2.01 KRS shall employ PT as Facility Director at the Keystone
Rehabilitation SystemS of Indiana facility located at 119 Professional
Center, 0000 Xxxxx Xxxxxx, Xxxxx 000, Xxxxxxx, Xxxxxxxxxxxx, 00000
(herein referred to as "Facility") or wherever in Indiana Borough
and/or White Township that Facility may be relocated during the term
of this Agreement, and PT accepts and agrees to remain in the
employ of KRS in the aforesaid capacity upon the terms, conditions and
provisions herein stated from the date of execution hereby, and during
such periods of renewal as KRS and PT may agree upon in writing.
2.02 During the term of employment, PT agrees to devote his/her primary
employment efforts, attention and skill to act as Facility Director
and perform the executive, administrative, supervisory and clinical
functions of a Facility Director outlined below and further agrees to
notify, in writing, the President of KRS of other employment or
contractual arrangements in the field of physical therapy and/or
rehabilitation outside of KRS.
2.03 PT agrees to make a reasonable effort to provide the time and services
required to meet the needs of KRS to render physical therapy and
rehabilitation services to patients of KRS and/or other
institutions/agencies currently under contract with KRS as the
Keystone Rehabilitation Systems of Indiana Facility Director. These
duties shall include high quality services meeting the standards
established by the American Physical Therapy Association, the
Pennsylvania Licensure Acts, the Pennsylvania Department of Health,
Medicare and third-party reimbursing agencies.
2.04 PT agrees to perform the following duties in his/her capacity as
Facility Director of Keystone Rehabilitation Systems of Indiana: PT
will have overall supervisory responsibility and accountability for
the Facility on a day-to-day basis. He/She will administer and direct
in accordance with the Facility and corporate policy, and will be
responsible for Facility policy, planning,
directing, personnel hiring and management, purchasing, consulting and
patient care, including the following:
(a) The supervision of the Facility.
(b) Maintaining timely records of purchases, as well as being
responsible for purchase order tracking, as required, and
logging of expenses as they pertain to the Facility chart of
accounts.
(c) Obtaining reasonable prices for items purchased for the
Facility.
(d) Monitoring the purchase of all needed Facility items and
maintaining adequate inventory where needed.
(e) Assisting in the hiring and management of qualified staff
for the Facility to perform needed rehabilitation services
at an optimal level.
(1) Informing the Regional Vice President of the need
for the hiring of new staff at the Facility.
(2) Assisting in interviewing and the selection of
candidates best suited to fill job openings at the
Facility.
(3) Administering and overseeing proper orientation of
new employees in order to maintain smooth and
efficient Facility operation.
(4) Monitoring Facility professional staff to assure
skill levels are maintained and that all continuing
education credit requirements are met.
(5) Reviewing all Facility employees on a regular basis
as outlined in the KRS employee manual and providing
performance appraisals as required by KRS.
(f) Supervising Facility personnel on a day-to-day basis.
(1) Delegating and assigning responsibilities to staff,
as needed.
(g) Participating as a member of standing committees as required
in the Facility, including: Patient Care, Safety, Infection
Control, Utilization Review, Pharmacy.
(h) Participating in Facility's in-service programs.
(1) Presenting programs and acting as a resource person
for the in-service coordinator or like person.
(i) Representing the Facility in meetings or assigning
appropriate representatives, as deemed necessary.
(j) Supervising and/or participating in the screening and/or
evaluating of all Facility
incoming admissions and assisting in the formulation of a
specific regiment of therapy including goals and objectives.
(k) Supervising the collection of all pertinent statistical
information in the Facility. Providing treatment projections
for the Facility and KRS.
(l) Acting as primary consultant to the Facility Utilization
Review Committee with respect to all patients.
(m) Acting as Facility clinical supervisor of physical therapy
students from local schools on clinical affiliations.
(n) Assisting in the development of Facility studies which will
conceivably provide for better and more efficient patient
care in the future.
(o) Assisting in arranging for homebound instruction and
discharge planning with regard to all Facility patients.
(p) Maintaining a caseload of Facility patients and
administering routine daily planning with regard to
patients.
(q) Maintaining effective public relations for the Facility.
(1) Being available for community events and
presentations that will increase
awareness of the Facility as deemed necessary by the
KRS Facility administrator and Regional Vice
President.
2.05 PT agrees to provide quality physical therapy and rehabilitation
services to patients seeking such services at the Facility on behalf
of KRS regardless of race, creed, color or national origin.
2.06 PT agrees to work within the KRS organizational framework including
all policies and procedures of KRS as well as the
institutions/agencies where PT may be responsible for providing
services on behalf of KRS.
2.07 PT agrees to provide the necessary public relations, marketing and
personal physician contact necessary and required for the development
and expansion of the Facility's rehabilitation services in Indiana
Borough and/or White Township, Pennsylvania.
2.08 PT agrees to provide KRS with descriptive statistical reports of
services rendered at the Facility, analysis for demands of services in
the Indiana Borough and/or White Township area and assistance in
developing quality, as well as quantity physical therapy and
rehabilitation services.
2.09 PT agrees to an annual physical examination conducted by a licensed
physician selected by PT at KRS' expense or KRS' physician.
2.10 PT agrees not to directly xxxx the patient, patient's family or other
health insurance programs or the institutions/agencies currently under
contract by KRS or placed under contract by KRS during the terms of
this Agreement for physical therapy and rehabilitation services during
the term of this contract.
2.11 PT agrees to work cooperatively with KRS' Regional and Corporate
Management Staff as it currently stands or as future re-organization
may require in matters associated with overall management and
development of his/her Facility. Furthermore, KRS shall work
cooperatively with PT in providing him/her with the same
Corporate/Regional services as received by other facilities. Such
Corporate/Regional services include, but are not limited to, policies
and procedures associated with day-to-day management and mechanisms
for implementation, programs in marketing and public relations,
direction and assistance in development of new contracts, physician
partnerships, wholly owned outpatient centers and/or other mutually
agreeable for-profit businesses, all aspects of human relation
services as well as programs necessary for finance including
accounting services,
computer services, management and financial information services,
xxxxxxxx and accounts receivables, accounts payable, and all aspects
of business associated with taxes.
PART III - SERVICES PROVIDED BY KRS
-----------------------------------
3.01 KRS shall work cooperatively with PT in providing quality and quantity
physical therapy and rehabilitation services as previously stated in
this contract. KRS shall supply management services and accounting to
the Facility on the same basis as in the calendar year of 1994 or as
otherwise mutually agreed upon subject to its requirement to permit PT
equal rights with it in the management and conduct of Facility
activities.
3.02 For physical therapy and rehabilitation services provided at the
Facility, KRS shall be responsible for maximizing and collecting all
fees associated with services including contractual arrangements with
various governmental and private institutions/agencies and shall
permit PT access to all records of KRS that relate to the Facility.
3.03 KRS shall provide equipment, supplies and facilities necessary for PT
to render services to patients and/or institutions under contract with
KRS and to maintain the Facility's certification as a medicare
rehabilitation agency.
3.04 KRS shall maintain records that segregate the equipment and account
receivables associated with the operation of the Facility from other
equipment and account receivables of KRS. No equipment or account
receivables so identified shall be transferred or sold without the
prior written consent of PT. PT shall be supplied by KRS with a
statement of the equipment and account receivables of the Facility on
at least an annual basis and more frequently if requested by PT.
3.05 Without the written consent of PT and regarding the equipment and
accounts receivable of the Facility (as mentioned above), KRS shall
not:
(a) Do any act in contravention of this Agreement;
(b) Do any act that would make it impossible to carry on the
business of the Facility;
(c) Possess Facility property or assign Facility property for
other than a Facility purpose;
(d) Make, execute, or deliver any assignments for the benefit of
creditors, or on the assignee's promise to pay the debts of
the Facility, or any bond, guaranty, indemnity bond, or
surety bond;
(e) Assign, transfer, pledge, compromise, or release any claim
of the Facility except for full payment, or arbitrate, or
consent to the
arbitration of, any of it disputes or controversies;
(f) Sell all or any part of any Facility property without first
having obtained the written consent of all parties; or
(g) Do any of the following without the consent of all the
parties:
(1) Make, execute, or deliver for the Facility any
bond, mortgage, deed of trust, guarantee, indemnity
bond, surety bond, or accommodation paper or
accommodation endorsement;
(2) Amend or otherwise change this Agreement so as to
modify the rights or obligations of the parties as
set forth in this Agreement; or
(3) Create any personal liability for any party other
than that personal liability to which any party may
have agreed to in writing.
PART IV - COMPENSATION
----------------------
4.01 The annual base salary of PT shall be at the rate of EIGHTY-TWO
THOUSAND FOUR HUNDRED AND N0/100 ($82,400.00) Dollars per year,
payable in equal bi-weekly installments. The annual base salary shall
be increased each lst day of January, at a minimum, by the most
recently published consumer price index.
4.02 PT shall be a participant in all benefits offered by KRS that are
usual and customary for Facility Directors; at no time shall these
benefits be less than those in effect as of the lst day of January,
1995, unless otherwise mandated by law, and KRS shall provide and pay
for the expense of company malpractice insurance issued to cover all
employees with respect to any liability arising from employment. Such
insurance shall be in the amount of $5,000,000.00 per case and/or
$5,000,000.00 in the aggregate. KRS shall maintain the same throughout
this Agreement.
4.03 In addition to the annual base salary of PT and in consideration of
the sum of TWO HUNDRED SEVEN THOUSAND EIGHT HUNDRED TWENTY-FIVE AND
NO/100 ($207,825.00) DOLLARS paid by PT to KRS, receipt of which is
hereby acknowledged by KRS, KRS hereby agrees to pay PT a monthly
commission equal to twenty-five (25%) percent of Pre-Commission Net
Income of the Keystone Rehabilitation Systems of Indiana Facility,
Cost Center No. 130.
Pre-Commission Net Income is defined for this purpose as it has
been used and defined by KRS's past practice in treating each of it's
facilities as "cost centers".
It is further agreed that the Corporate and Regional Overhead in
the "cost center" statement shall be defined as the product of the Net
Revenues, as presented on the
monthly Facility Profit and Loss Statement, multiplied by 8.6%. The
services and expenses provided to the Facility by KRS are listed on
Exhibit "A".
4.04 Other than losses in the monthly Profit and Loss Statements at the
Facility which will be carried forward to be offset against profits,
but otherwise not payable by PT, in no event shall PT be responsible
for any obligations or liability of KRS with respect to any
liabilities and losses in connection with the business of the Facility
or any other business of KRS whether under this Agreement, under prior
Agreements, or otherwise.
4.05 Payment of commissions to the PT for each calendar month during the
year shall be made within ninety (90) days of the last day of such
calendar month. Monthly reports of Facility operations shall be
provided to PT within a reasonable time following the end of such
calendar month, and payment of commission shall be based upon such
reports. However, in order for both parties to make a reasonable
transition for payment of commissions to the PT from forty-five (45)
days to ninety (90) days, the following schedule shall be adopted:
January Commission 45 days Paid in first pay
period in March
February Commission 60 days Paid in last pay
period of April
March Commission 75 days Paid in first pay
period in June
April Commission 90 days Paid in last pay
period in July
All additional months shall be paid in the last pay period of the
month, but within ninety (90) days of the month of services rendered.
PART V - NONCOMPETITION AND SECRECY
-----------------------------------
5.01 In the event that PT voluntarily terminates this Agreement by default
or withdrawal, as provided below, PT agrees to be bound by the non-
competition provisions of this Agreement defined below and KRS shall
be entitled to conduct the same business within Indiana Borough and/or
White Township, Pennsylvania free of competition from PT for a period
of 12 months from the effective date of termination. In the event that
KRS voluntarily terminates this Agreement by default or withdrawal, as
provided below, KRS agrees to be bound by the non-competition
provision of this Agreement defined below and PT shall be entitled to
conduct the same business within Indiana Borough and/or White
Township, Pennsylvania free of Competition from KRS for a period of 12
months from the effective date of termination. KRS and PT agree not to
open or purchase another physical therapy or rehabilitation facility
within Indiana Borough and/or White Township, Pennsylvania unless
mutually agreed upon, in writing.
In the event the parties by mutual consent terminate this
Agreement, neither Party shall be bound by the non-competition
provisions defined below.
"Non-competition" for the purposes and intent of this Agreement,
is defined as not directly or indirectly becoming or serving as an
officer, agent, consultant to, independent contractor with or employee
of an individual, partnership, corporation or other business entity,
or owner, partner or shareholder of any business entity, which
conducts a business in direct competition with the party who, by
virtue of the terms and conditions of this paragraph, is entitled to
conduct business operations contemplated by this Agreement, within
Indiana Borough and/or White Township, Pennsylvania.
5.02 At all times, both during and after the termination of his/her
employment, PT shall keep and retain in confidence and shall not
disclose to any persons, firm or corporation (except with the written
consent of KRS first obtained) any of the proprietary, confidential or
secret information or trade secrets of KRS.
5.03 PT agrees not to take employment or be a subcontractor at any agency
currently under contract with KRS or other Keystone Rehabilitation
Systems, Inc.'s subsidiary corporations or other agencies under
contract with KRS that PT has direct responsibility to manage during
the
term of this Agreement and for twelve (12) months following
termination, unless agreed to in writing by the President of KRS.
5.04 In the event that Xxxxxx X. Xxxxxx does not own controlling interest
in KRS, then, in that event, PT may either immediately or at a later
date exercise one of the following:
(a) With sixty (60) days written notice to the President of KRS,
PT may withdraw from the. 25% Pre-Commission Net Income
provisions of Section 4.03 of this Agreement, be reimbursed
PT's payment under Section 4.03 of this Agreement by KRS or
its successor within sixty (60) days, and not be bound by
the non-compete provisions of this Agreement. Either party
may then terminate employment under the provisions of this
Agreement or negotiate a new agreement.
(b) With sixty (60) days written notice to the President of KRS,
PT may withdraw from the 25% Pre-Commission Net Income
provisions of Section 4.03 of this Agreement, be reimbursed
a minimum of two (2) times the most recent twelve (12)
months of the PT's share of Pre-Commission Net Income by KRS
or its successor within sixty (60) days, and not be bound by
the non-compete provisions of this Agreement. Either party
may
then terminate employment under the provisions of this
Agreement or negotiate a new agreement.
SECTION VI - TERMINATION
------------------------
6.01 Any party may withdraw from this Agreement by giving the other party
ninety (90) days written notice of such party's intention to withdraw
(withdrawing party). The withdrawing party agrees to be bound by the
non-competition provisions defined in 5.01. The non-withdrawing party
has the option to continue the Facility by purchasing the withdrawing
party's interest pursuant to 6.03. In any event, should the
withdrawing party be PT, KRS is bound to reimburse PT his/her
contribution under 4.03 or two (2) times the most recent twelve (12)
months of the PT's share of Pre-Commission Net Income, whichever is
greater, within sixty (60) days, and PT shall have the option to
remain as a Facility Director of KRS at the compensation equal to the
base salary established in this Agreement pursuant to 4.01 with
routine six (6%) percent Pre-Commission Net Income and on the same
basis as other employed facility directors.
6.02 This Agreement may be terminated by either party upon a material
breach of the terms and conditions of this Agreement by the other
party, provided written notice is delivered to the other party setting
forth the nature of the material breach and the defaulting party has
not cured the breach within thirty (30) days of said notice.
The party that breaches the terms and conditions of this Employment
Agreement (defaulting party) agrees to be bound by the non-
competition provisions in 5.01. The non-defaulting party has the
option to continue the business by purchasing the defaulting party's
interest pursuant to 6.03. In any event, should the defaulting party
be PT, KRS is bound to reimburse PT his/her contribution under 4.03,
within sixty (60) days.
6.03 The purchase price of a party's interest as a result of a termination
of this Agreement shall be as follows:
(a) If the defaulting or withdrawing party is PT, then
$207,825.00 and PT's share of unpaid Pre-Commission Net
Income produced at the Facility; and
(b) If the defaulting or withdrawing party is KRS, then
$623,475.00 and KRS's share of unpaid Pre-Commission Net
Income produced at the Facility.
(c) In either (a) or (b) of the above, payment shall be made
within sixty (60) days of the termination of this Agreement.
6.04 In the event of the death or total and permanent disability of PT,
this Agreement is terminated and, in lieu of distributions as set
forth in Section 6.03, KRS shall pay PT or his/her estate an amount
equal to two (2) times PT's most recent twelve (12) months Pre-
Commission Net Income, and PT's share of unpaid Pre-Commission Net
Income and the amount of PT's payment under Section 4.03 of this
Agreement. Such payment shall be made within sixty (60) days following
the death of PT or the date PT is declared by a licensed physician to
be totally and permanently disabled.
SECTION VII - GENERAL PROVISIONS
--------------------------------
7.01 This Agreement shall be governed by and construed in accordance
with the laws of the Commonwealth of Pennsylvania.
7.02 This Agreement is not assignable by either party hereto without the
prior written consent of the other party. Subject to the foregoing,
however, this Agreement shall be binding upon and inure to the benefit
of the parties hereto and their respective successors, assigns, heirs
and representatives, including but not limited to any trustee of the
estate, estate administrator, or any other party responsible for the
affairs of the estate.
7.03 This Agreement constitutes the entire understanding of the parties
with respect to the subject matter hereof and supersedes all prior or
contemporaneous understanding and writings. This Agreement may be
modified or amended only by a writing executed by all parties
hereto. The waiver by any party of any breach or default hereunder by
the other party shall not be construed as a waiver by such party of
any subsequent breach or default.
7.04 Any notices required or permitted to be given under this Agreement
shall be sufficient, if in writing, sent certified mail, return
receipt requested, as follows:
If to KRS:
Xxxxxx X. Xxxxxx
KEYSTONE REHABILITATION SYSTEMS
The Atrium
000 Xxxxxxxxxxxx Xxxxxx
X.X. Xxx 0000
Xxxxxxx XX 00000
If to Employee:
XXXXX XXXXXXXXX
000 Xxxx Xxx Xxxx
Xxxxxxx XX 00000
EXECUTED on this 26 day of January ,
------ -----------
1995, at Indiana, PA .
-- ----------------
KEYSTONE REHABILITATION SYSTEMS
000 Xxxxxxxxxxxx Xxxxxx
X.X. Xxx 0000
Xxxxxxx XX 00000
/s/ Xxxxxx Xxxxxxxxx
------------------------------ BY: /s/Xxxxxx X. Xxxxxx
Witness ----------------------
Xxxxxx X. Xxxxxx
Employee:
XXXXX XXXXXXXXX
000 Xxxx Xxx Xxxx
Xxxxxxx XX 00000
/s/ Xxxxxxx X. Xxxxxxxxx
------------------------------ /s/XXXXX XXXXXXXXX
Witness -------------------------
XXXXX XXXXXXXXX
EXHIBIT "A"
-----------
1. Monitor charges affecting Physical Therapy services at the Local, State
and National level.
2. The Facility Director is named as an additional insured on KRS policies of
general liability, professional liability, and property insurance
3. KRS is responsible for assuring the Facilities certification as a
rehabilitation agency and maintaining the same throughout the term of this
Agreement.
4. KRS shall indemnify and save Facility Director harmless from and against
actions of any third parties including without limitation any and all
claims, suits, costs, loses, and expenses that may in any manner result
from or arise out of KRS's performance of its duties under this Agreement
together with all costs and attorneys fees that the Facility Director may
incur as a result of the acts or omissions of KRS hereunder.
5. Assure that all KRS staff follow Personnel Policies that are supported by
appropriate written documentation including job descriptions,
qualifications, licensure, performance evaluation, and health examinations
as required.
6. Assure all practices and procedures are supported by written policies and
procedures covering the scope of services offered, patient care plans,
clinical records, administrative records, use and maintenance of service
related equipment and program evaluation.
7. Assure that all Medicare, CARF, ADA, OSHA and Labor and Industry
requirements are followed on a timely basis.
8. Maintain all patient records for at least seven (7) years after termination
of services.
9. Develop, review and update when necessary all fees for services of the
Facility.
10. Prepare requests and appropriate documents for Facility regarding all
capital equipment.
11. Establish and assure the Facility of a reasonable staffing pattern that
permits economic but quality rehabilitation therapy services.
12. Establish and implement a mechanism to evaluate the business and clinical
activities of the Facility.
13. Provide all internal bookkeeping, Profit and Loss Statements, Internal
financial statements, and statistical reports.
14. Provide for all communications with financial institutions regarding any
matters appropriate to the financing of equipment purchased for the
Facility.
15. Maintain all hardware and software associated with computers including
consulting and programming for systems enhancement and new applications.
16. Provide data transmission lines between MIS Department and the Facility.
17. Provide for billing invoices and envelopes, payroll checks and envelopes,
accounts payable checks and envelopes, purchase orders, financial operation
guidelines, etc.
18. Provide for adequate documentation of depreciation and/or amortization for
furnishing and equipment and leasehold improvements as well as computer
equipment where applicable.
19. Assume all financial responsibility associated with the collection of fees
for services provided.
20. Provide for provisions for outside collection agencies when necessary.
21. Assure that appropriate mailing of accounts payable checks, payroll checks,
and billing invoices and other mail in general on an as needed basis.
22. Establish and recommend future business opportunities of the Facility which
may include but is not limited to the development of contracts with skilled
nursing facilities, home health agencies, hospitals, school districts, etc.
23. Expansion of existing services to include industrial rehabilitation,
orthotics services, sports medicine services, back testing services, etc.,
where applicable.
24. Develop a marketing and public relations program.
The following expenses will be charged directly to the cost centers and are
not included in the 8.6% of Net Revenue charge:
1. External legal fees associated with actions arising directly as a result of
services at the Facility except to the extent reimbursed or covered by
insurance.
2. Expenses associated with marketing programs/public relations programs
specifically for the Facility and approved by the Facility Director.
3. Salaries, fringe benefits, and reimbursable expenses of the KRS staff at
the Facility.
4. Reasonable recruitment expenses for the Facility as necessary when approved
by Facility Director.
5. Other reasonable expenses associated with the day-to-day operation of the
Facility which include but are not limited to rent, taxes, utilities,
supplies, etc.
