HomeMy WebLinkAboutContracts & Agreements_189-2017 MEMORANDUM OF UNDERSTANDING
BETWEEN
CITY OF REDLANDS, CALIFORNIA
AND
REDLANDS COMMUNITY HOSPITAL
THIS MEMORANDUM OF UNDERSTANDING is made this 19th day of September,
2017 by and between the undersigned representatives of THE CITY OF REDLANDS,
CALIFORNIA ("CITY") and REDLANDS COMMUNITY HOSPITAL ("HOSPITAL"), a
501(c)(3) non-profit corporation, located in Redlands, California
RECITALS
WHEREAS, HOSPITAL is a charitable 501(c)(3) non-profit hospital that provides a
disproportionate share of healthcare services to the Medicare population in addition to supporting
many programs that benefit the indigent, uninsured or underinsured population in the State of
California, and
WHEREAS, HOSPITAL desires to participate in the drug discount program established
under Section 340B of the Public Health Services Act, as amended (the"34013 Program"), and
WHEREAS, in order to participate in the 340B Program, HOSPITAL must enter into an
agreement with a unit of the state or local government pursuant to which HOSPITAL commits to
provide health care services to low income individuals who are not entitled to Medicare or
Medicaid benefits, and
WHEREAS,the City Council is the governing body of the City of Redlands and has broad
powers to establish policies for CITY services, and
WHEREAS, HOSPITAL desires to make such a formal commitment to CITY, and
WHEREAS, CITY agrees to accept such commitments on behalf of the citizens of
Redlands and those served by CITY,
NOW, THEREFORE, in consideration of the mutual agreements and covenants contained
therein and for other good and valuable consideration, the receipt and sufficiency of which hereby
are acknowledged, it is mutually agreed and covenanted, under seal, by and between the parties to
this Agreement, as follows
Page 2 of 4
1 Commitment of HOSPITAL to Provide Indigent Care
During the term of this MOU, HOSPITAL agrees to continue its historic commitment to
the provisions of health care to indigent, uninsured and underinsured residents of the CITY
and others served by the HOSPITAL In 2016, this commitment totaled more than $3 4
Million in foregone charges Pursuant to this commitment,it is the intention of HOSPITAL
that indigent care provided during the term of this MOU will range generally between S
2 5 Million and $3 5 Million annually In any event, HOSPITAL will provide medically
necessary care to HOSPITAL patients, to the extent required by law, regardless of the
patient's ability to pay
2 Accentance and Acknowledgements of CITY
(a) CITY accepts the commitment of HOSPITAL set forth above,
(b) CITY hereby acknowledges that the healthcare services provided by HOSPITAL
hereunder are in the public interest and are being provided to individuals who are not
entitled to benefits under Title XVIII or eligible for assistance under any State plan
pursuant to Title XIX of the Social Security Act, and
(c) CITY acknowledges that HOSPITAL is providing these services at no
reimbursement, or at considerably less than full reimbursement, from the patients
3 Representations of HOSPITAL HOSPITAL represents that as of the date hereof
(a) HOSPITAL constitutes a corporation, duly incorporated and validly existing in
good standing under the laws of the State of California with the corporate power and
authority to enter into and perform its obligations under this MOU, and
(b) HOSPITAL is a tax-exempt corporation under Section 501(c)(3) of the Internal
Revenue Code of the United States, as amended and under applicable laws of the State of
California
4 Term and Termination The term of this MOU shall commence on the date first above
written and shall continue until terminated by either party upon not less than sixty (60)
days prior written notice to the other
5 Notice All notices required or permitted to be given under this MOU shall be deemed
given when delivered by hand or sent by registered or certified mail, return receipt
requested, addressed as follows
Page 3 of 4
CITY
Attention N Enrique Martinez, City Manager
Address City of Redlands
350 Cajon Street, Suite 200
P O Box 3005 (mailing)
Redlands, CA 92373
HOSPITAL
Attention James R Holmes, President
Address Redlands Community Hospital
350 Terracma Boulevard
Redlands, CA 92373
Copy to Emily Jane Cook, Partner
McDermott Will& Emery
2049 Century Park East, 38"Floor
Los Angeles, CA 90067-3218
6 Govermn2 Law This MOU shall be governed by and construed in accordance with the
laws of the State of California (excepting any conflict of laws provisions which would
serve to defeat application of California substantive law)
IN WITNESS WHEREOF, HOSPITAL and CITY have executed this Memorandum of
Understanding as of the day and year first written above by their duly authorized representatives
CITY OF REDLANDS DLANDS COMMUNI✓T1Y HOSPITAL
By
v
Name Paul W Foster Name James R Holmes
Title 11AYOK Title President
ATTEST
a e Donaldson,40ty3C�lcrk
Page 4 of 4
Approved as to form and legal sufficiency by
By
Name Daniel J Mc ugh
Title Citv Attornev