The Health Provider company enters into a health care financing agreement with a Health Provider bank to
Question:
The Health Provider company enters into a health care financing agreement with a Health Provider bank to provide health-related services and reduce administrative liabilities and provide additional financing options to its patients.
1. Under this contract, patients have the option to request the company to transfer their receivables to the bank. When such a request is made, the following occurs:
• The company transfers the patient's receivables to the bank.
• The bank would pay the receivable balance to the company in cash.
• Since the bank would now hold the receivables from the patient, the patient and the bank would make a low-interest loan agreement and determine the repayment conditions.
2. The following additional provisions are included in the agreement between the company and the bank:
• Repurchase obligation: The company is obliged to take back the transferred receivables.
• Obligation to pay termination: Unless otherwise agreed in writing, the company is obliged to recover all transferred receivables held by the bank upon termination of the contract. Either party may terminate the contract with 30 days' notice.
• Although it has not been realized yet, the company management believes that it will receive a “real sale” opinion from the legal counsel regarding the takeover.
• Contracts do not prohibit the bank from transferring its receivables in return for a loan or as collateral in a performance sale.
• Although it has not been realized yet, the company management believes that it will receive a “real sale” opinion from the legal counsel regarding the takeover.
• Contracts do not prohibit the bank from transferring its receivables in return for a loan or as collateral in a performance sale.
• Although it has not been realized yet, the company management believes that it will receive a “real sale” opinion from the legal counsel regarding the takeover.
• Contracts do not prohibit the bank from transferring its receivables in return for a loan or as collateral in a performance sale.
Do you have any suggestions for the Healthcare Provider company? And why?
Smith and Roberson Business Law
ISBN: 978-0538473637
15th Edition
Authors: Richard A. Mann, Barry S. Roberts