Common use of Cost Settlements Clause in Contracts

Cost Settlements. A. The parties recognize that the provision of medical services in the current competitive environment may at times require a joint effort on the part of the University and University Hospital and Foundation in the formation of new delivery systems. These efforts may at times require the sharing of cost between the parties. Formulas for the sharing will be developed and mutually agreed to by the parties, which may result in payment by the University to the Foundation, or by the Foundation to the University. Examples of such joint efforts include but are not limited to: 1. The operation of the UK Health Care Plans, including the UK-HMO. 2. The operation of certain marketing efforts. 3. Payment to the Fund for Advancement of Education and Research for the Medical Center for services rendered to clinical departments or units of the College of Medicine by members of practice plans of the Colleges of Health Sciences, Dentistry, Nursing, or Pharmacy. B. The parties also agree that data exchanges between the computer systems, regardless of mode, of the University and Foundation will be payable at cost by the receiving party, or offset by an exchange of data deemed by both parties to be payment-in-kind. C. Foundation may acquire by purchase, lease, or other means real and/or personal property to be utilized in the production of clinical income resulting from teaching, research and service functions performed by the members of the clinical departments. Acquisition of said real and/or personal property must be authorized by the Board of Directors of Foundation.