Kaiser Permanente MEDICAL SERVICE AGREEMENT
Base Compensation to Medical Group
Health Plan will pay Medical
Group the amounts
specified in this Article J and in Article K for Medical Services and
services provided by Medical Group hereunder.
Each year a Ratemaking Forecast will be prepared for the following year. the Ratemaking forecast will include projections with respect to all items that must be taken into consideration to develop a meaningful forecast, including levels of dues and Supplemental Charges and other expected revenues, number of Members, Medical Group staffing and compensation (including Base Compensation to Medical Group AND PLANNED AT RISK COMPENSATION [vts' highlighting]), appropriate levels of support personnel in medical offices, hospital and medical office utilization rates, Capital Budget, and other relevant factors.
Before the end of each year, Health Plan and Medical Group will:
(a) prepare an Operating Budget that includes, at a minimum, provisions regarding the items contained in the Ratemaking Forecast including a Capital Budget; and
(b) enter into a Memorandum of Understanding for the following calendar year.
The Memorandum of Understanding will be part of this Agreement. To the extent that the Operating Budget contains information or amounts required to apply the provisions of this Agreement, it, too, will be part of this Agreement. However, the Operating Budget does not represent a commitment to pay or allocate funds.
Section J-2. Per Capita CompensationPer Capita compensation is the primary payment to Medical Group. Per Capital Compensation is determined monthly by Health Plan and Medical Group and is the product of the number of actual Members during the month multiplied by the Per Capita Amount. Year to date adjustments will be made for retroactive terminations and enrollments. The total of the monthly Per Capita Compensation payments for the calendar year is the Per Capita Compensation for the year.
Base Compensation to Medical Group is Per Capita Compensation adjusted as provided in this Section.
(a) Increases in Per Capita Compensation.
(i) the cost of Medical Group fringe benefits agreed to by Health Plan (and for this purpose the cost of any retirement plan is the actual amount paid by Health Plan to Medical Group therefor); plusPer Capita Compensation is established without regard to the following items of revenue and therefore will be decreased by the sum of:
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