Latest / Medsolve Dynamics / How to avoid financial losses and unexpected escalations from your service contract.
Transcript
- Yoel Bakas: I have watched programs lose six figures on a contract they thought was clean. Not because they negotiated badly. but because they did not read the full document before the renewal conversation started. There are four provisions that show up in almost every radiation oncology service contract that rarely get flagged. The first is the Evergreen Clause. It automatically renews you unless you give 90 days written notice or longer. miss that window and you're usually locked in for another term. The CPI escalator is the second one. Your service contract escalates at a rate you did not negotiate. compounded over five years, that is not a rounding error. The third is the bundled software license. You can't exit the software agreement without losing the service contract. They are written together for a reason. The fourth is the Uptime SLA Definition. Make sure you read and understand how uptime is calculated. Make sure the hours that count towards your guarantee are the hours that matter to you clinically. These are not obscure provisions. They are standard. I sat on the other side of the table where they were written. Read the whole contract before you even think of starting a renewal conversation. A discounted signing does not protect you from five years of escalation you did not see coming.