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Kaiser Permanente Medical Service Agreement 


Introductory Provisions


Section B-1:    Functions of Health Plan

     Health Plan arranges Medical and Hospital Services through contractual arrangements with physicians and hospitals.

Section B-2.     Functions of Medical Group

     Medical Group is a group of physicians organized for the purpose of conducting a medical practice, including the rendering of Medical Services to Members.  Medical Group is familiar with the nature and extent of Medical Services required under Group and Individual Membership Contracts now in Effect, and is prepared to provide or arrange Medical Services to Members through the personal services of its present or prospective physicians or other health care providers available to Medical Group.


Section B-3.    Mutual Desire to Contract Regarding Medical Services

     Health Plan desires to arrange by contract for Medical Services, in the Service Area, required to satisfy, or convenient of incidental in connection with satisfying, the Medical Services obligations of Membership Contracts.  Medical Group desires to arrange or provide Medical Services for the consideration and subject to the terms and conditions set forth in this Agreement.

Section B-4.     Independence of Contracting Parties

     A fundamental feature of the Medical Care Program is that Health Plan and Medical Group are separate and independent.  The relations of Health Plan with Medical Group are purely contractual, and neither Health Plan nor any employee thereof is the agent, employee, or other representative of Medical Group nor is Medical Group or any employee thereof an agent, employee, or other representative of Health Plan.

Section B- 5.     Rights of Third Parties

    Although this Agreement contemplates Medical Services for Members, Health Plan and Medical Group reserve the right to amend this Agreement by mutual agreement or to terminate it without notice to, or consent of, any Member, and nothing herein contained will operate in any manner whatsoever to increase the rights of any Member or the duties or responsibilities of Medical Group or Health Plan over such rights, duties and responsibilities as may exist in the absence of this Agreement.

Section B-6.     Liaison and Cooperation

    The nature of the Medical Care Program is such that efficient operations, in the interest of providing comprehensive benefits to Members at the most reasonable cost consistent with desirable standards of Medical and Hospital Services, requires continuing and effective liaison and close cooperation between Health Plan and Medical Group.  Health Plan and Medical Group desire that, to the fullest extent consistent with separate and independent management, such liaison and cooperation be maintained.

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