Transcript

Why Most Oncology Service Contracts Quietly Cost Programs Money · Medsolve Dynamics

Yoel Bakas: If your service contract is renewing this year, the clock has already started. Most of them have notice windows written somewhere in the contract that nobody reads. If you miss it by just a few days, the contract auto-renews with a 4 % escalator. I had a program administrator reach out to me after they missed the window. It was a $400,000 contract and a 4% escalator. That's a $15,000 dollar charge they did not have to pay. Multiply that by the number of years in the contract and the number of contracts you have and you quickly realize that these are not trivial numbers. I spent 20 years making sure those clauses were in the contract. Now I sit on your side of the table. Check your contract before the clock runs out.