Common use of Service Development Clause in Contracts

Service Development. Manager realizes that Practice has opportunities to provide new services and utilize new technologies that will require capital expenditures and Manager anticipates that such opportunities may include new and replacement equipment as may be economically justified and medically necessary. Development of new services will depend on, among other factors, physician composition, anticipated volume, reimbursement and number of physicians, physician support, Practice performance, and appropriate physician specialty mix, be subject to the requirements of any applicable leases and subleases, and will require Policy Board approval as a precondition to any capital expenditure.

Service Development. Manager realizes that Practice has opportunities to provide new services and utilize new technologies that will require capital expenditures and Manager anticipates that such opportunities may include new and replacement equipment as may be economically justified and medically necessary. Development of new services will depend on, among other factors, physician composition, anticipated volume, reimbursement and number of physicians, physician support, Practice performance, and appropriate physician specialty mix, be subject to the requirements of any applicable leases and subleases, and will require Policy Board Executive Committee approval as a precondition to any capital expenditure.