EXHIBIT 10.30 Final Draft [Vitalink letterhead] August 29, 1997 GranCare, Inc. One Ravinia Drive Suite 1500 Atlanta, Georgia 30346 Attention: M. Scott Athans, President and Chief Executive Officer Re: Preferred Provider Arrangement Dear Mr. Athans: As...Preferred Provider Arrangement • December 29th, 1997 • Paragon Health Network Inc • Services-skilled nursing care facilities
As you know, pursuant to the terms of those certain Pharmaceutical Supply Agreements ("PSA's") described in that certain Omnibus Reconciliation Services Agreement, dated March 1, 1997 (the "ORSA"), Vitalink Pharmacy Services, Inc. and/or certain affiliates of Vitalink including, without limitation, TeamCare, Inc. (Vitalink and all such affiliates being referred to herein collectively as ("Vitalink") has the contractual right to provide to all of GranCare's "Facilities" (as defined in the ORSA) all of their pharmaceutical goods and services. In recognition of the fact that Vitalink has chosen not to provide such goods and services to a number of the Facilities at this time, and in anticipation of the closing of your announced merger with Living Centers of America, Inc., Vitalink hereby authorizes GranCare to contract with American Pharmaceutical Services, Inc. ("APS") to provide all pharmaceutical goods and services to such Facilities; provided, however, that if during the term of the P
