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HomeMy WebLinkAbout12102012 City Council Work Session Notes - Providence Contract Review , .I WORK SESSION NOTES ON iit)victefice, co)Ttra ct . ' .p,:._.= „ ___________._______________._.________ Purpose: 0,V 1.f/Ui ely i rinl 'Pyb\fd-ence. Conlya a- Present-I-I/Mt iiyittti rief-, Council Members Present: . 01).004re51, 1 • r-Li A ileAj f 4 aomii :11 ,Pe,Vd_arcCnn 4___ __ i.( . ,._ -, ,, aea c i rartoa1 ‘el, 42..., , , 4r% Called by: ffj1--inir,01,f 4 CI i Time (9',Off 9 ni Date )2---- I(.) — 12- itACb a 6 *********.).k*********************** :1 , ******************** 16111 widi . 0))61rv'le,u)// 1-116-1-PruH .0-' - 4 ca'6-76na- c--e- I - 'Ma Ck..--'d CA,U(YeAilt OlidYa-C Q/Y r 1 kr I MINC50-tialt • \iN VII \ .„--- / 100 CiUl(trAl'Thi , --,-- kik. 0\l'34\11 Vb1 't , �\ MANAGEMENT AND OPERATING AGREEMENT THIS-MANAGEMENT AND OPERATING AGREEMENT ("Agreement") is;made and entered into, by and :between THE CITY OF SEWARD, a municipal corporation (the. "City") and PROVIDENCE HEALTH &SERVICES WASHINGTON d/b/a PROVIDENCE HEALTH &SERVICES.ALASKA, a Washington,non-profit corporation authorized to dobusiness in Alaska providence"). RECITALS . WHEREAS,the City owns certain real property consisting of.land and a hospital ;together with:other improvements thereon; and,is in-the process of buildinga long-term care facility on a :separate•;parcel.-of .land..(collectively, the Providence •Seward Medical and'Care 'Center, "PSMCC"); and . WHEREAS, Providence has administeredhospital operations in Seward since June.28, 1996 and long-termcare operations since April 28,2002;and WHEREAS,the City,desires to continue affordable health;care for its residents;and WHEREAS, the City desires a single delivery system for acute,care and long term care services;and WHEREAS, the City desires cost effective health care services with',emphasis on reducing duplication and inefficiencies in the delivery system;and • WHEREAS; the;City desirestoengagesa company.with sufficienthealihcare knowledge and expertise, and Providence has successfully operated the co-located hospital and long-term care.facilities.on behalf of the City since 2002;and - WHEREAS, Providence owns and operates:a number of health care facilities that are operated in keeping with its philosophy,mission and values: ' • - . • Page 1 of 31 y l • NOW,THEREFORE,the City and Providence agree as'follows: 1. Operations: (a) Agreement to Operate/Manage. The City hereby contracts with Providence to be the sole and exclusive operator and manager of PSMCC for the term of this 'Agreement. Providence hereby agrees to operate and manage PSMCCron behalf of the City consistent with the terms of this Agreement and all applicable laws, regulations and ordinances. Providence assumes all the rights, duties, liabilities and obligations which shall 'arise:out of Providence's operation of the Providence Seward Medical and Care Center. Notwithstanding anything to the contrary, both parties understand and agree that any and all services provided by Providence during the term of this Agreement shall be provided solely for the benefit'of the City. During the term of this Agreementand subject to the other provisions of this Agreement, Providence shall operate PSMCC,and may perform or arrange for the provision of the following: 1. Ensure timely deposits into the Accounts (as defined in Section 5) of all receipts and moneys arising'from the operation of PSMCC, and shall make disbursements from such accounts in such amounts and at such times as the sarne,are required; .2.: Establish all prices, price schedules,rates and rate schedules for PSMCC; . • 3. Negotiate, prepare and execute any'such other 'contracts' 'reasonably necessary or desirable in connection with the operation of PSMCC in the usual course of business; • Page 2 of 31 0 4. Hire or retain any consultants, accountants, attorneys, or other professional personnel necessary and appropriate to assist Providence in carrying out its duties and responsibilities in accordance with this Agreement; 5. Operate PSMCC in a manner that is consistent with applicable federal, state and local anti-discrimination laws, including the, provision of services to persons at PSMCC without regard to race, creed, color, national origin or financial circumstances; 6. Operate PSMCC in a manner consistent with their Medical Staff Bylaws, as applicable. The parties hereby specifically agree to allow Providence, while acting in the name of PSMCC, to enter into certain exclusive contracts for the practice of primary care physicians, anesthesiologists, radiologists, pathologists,or other hospital-based specialists for the benefit of PSMCC; 7. Provide physician credentialing services and any and all other services as reasonably required to facilitate and perform credentialing functions (as applicable) at PSMCC; 8. Employ or otherwise retain and be responsible for selecting, hiring, training, supervising, and firing all management, professional, administrative, clerical, secretarial, bookkeeping, accounting, payroll,- billing and collection and other personnel that are reasonably necessary and appropriate for the operation of PSMCC; Page 3 of 31 0 9. Take all such actions reasonably"necessary to cause PSMCC to continue as participating providers under the Medicare and Medicaid programs; 10. Prepare, execute and file any required, documents with governmental or accrediting agencies, including without limitation any Medicare cost reports, provider agreements, and licensing documents; 11. Provide or arrange for the g provision of all marketing and public relations services that are reasonably necessary and appropriate for the operation of PSMCC. The parties hereby agree that Providence may, during the term of this Agreement, identify PSMCC as an entity under the operational management of Providence; 12. Providence may, in its sole discretion defend, assert, settle, or otherwise dispose of any claims, litigation, judgments, or liabilities in connection with PSMCC,and will notify the City of same; 13. Provide to the City an annual operating and capital budget for PSMCC; 14. Negotiate, contract for and generally supervise the disposal of all medical waste and/or garbage refuse; Page 4 of 31 15. Conduct medical educational training programs at PSMCC,including training of interns and residents and other medical/technical personnel, in a manner consistent with, applicable governmental regulations and Providence's policies;. 16. Unless otherwise specifically provided in this Agreement, Providence shall be responsible for the performance of all other acts reasonably necessary in connection with the operation of PSMCC in accordance with the approved annual budget and the terms and conditions of this Agreement. Notwithstanding anything to the contrary in this Agreement, Providence shall not have authority to bind the City or PSMCC as to the following,matters or to perform any of the following on behalf of the City or PSMCC without first obtaining approval from the City: (i) any sale,lease, exchange, mortgage, pledge, or other transfer or disposition of all or substantially all the assets of any of PSMCC other than in the ordinary course of business; (ii) any fundamental change in the nature of PSMCC's businesses; (iii) any merger, consolidation or affiliation of any of PSMCC with another entity; and (iv) any material change with respect to the insurance coverage obtained or provided through Providence, unless such change is beyond Providence's reasonable control. (b) General Control of PSMCC. Although the City has contracted day-to-day operations and management of PSMCC to Providence during the term of this Agreement, the City shall continue to own and have financial responsibility for PSMCC. The City shall also have control over the facility other than day-to-day operations. The City represents that, as of the Effective Date, it has a license as owner of PSMCC, and has listed Providence on the license as Page 5 of 31 • the manager to operate the PSMCC. Providence agrees that it will take all steps necessary to maintain and continue the PSMCC arid licenses, permits and certifications for the term of this Agreement,and the parties agree to take all steps necessary to preserve the designation of co- location at PSMCC, as such designation is outlined in the regulations published by the State of Alaska Department of Health and Social Services. (c) Required Notifications: Providence shall notify the City in writing within twenty-four (24) hours of the occurrence of any one or more of the following events: (1) Any loss of licensure by PSMCC; (2) At such time as Providence becomes aware of oily material governmental investigation or disciplinary proceeding relating to PSMCC; (3) At such time as PSMCC becomes debarred,suspended or otherwise ineligible to participate in any federal or state health care program,including the Medicare and Medicaid programs; (4) At such time as Providence becomes aware of any act of nature or any other event which has a material adverse effect on Providence'Obility to operate PSMCC. 2. Effective Date and Term. This Agreement shall become effective upon execution by both parties following adoption of Resolution 2008- (the "Resolution") by the Seward City Council (the"Effective Date"). The term of this Agreement shall be 18 months from the Effective Date unless sooner terminated as provided herein, provided that the parties may extend for three additional one-year terms upon mutual written consent, so long as the terms of the extension are the same as this Agreement, and that the terms are mutually agreed and approved prior to the end of the term. Any change in the;Annual Fixed Periodic Fee ("AFPF") above the CPI increase allowed in Section 6, is subject' to approval by the Seward City Council.Providence understands that under the Charter and Code of Ordinances of the City, Page 6 of 31 0 • the.Resolution may,be;voided by referendum. .Providence,agrees that if the Resolution is the ;;subject ;of a referendum petition filed with,the City,'Clerk, this,:Agreement-shall:be ineffective unless;and until the.Resolution.is approved by thevoters of the,City,and:Providence shall.not be entitled,to any damages orotl er relief against-the:City in the.event the`Resolution is-not so - approved. On the Effective Date;the Prior Agreement shall=terminate; -. 3. . ;; Operating,Expenses. In'accordance-with:theoperating budget adopted annually, Providence will incur:costs generally associated with the:.operation•of a health care-facility - providing acute:_and long-term care services. Costs associated,with, the Providence Alaska Regional Office and Providence.System,Office are deemed to be recovered in the form of the Annual Fixed Periodic Fee as described in Section..6, and will not be billed.to PSMC in addition to the AFPF. ' In the event the City and Providence discontinue••their contractual relationship, the costs incurred by.PSMCC in winding down and closing out its relationship with the City shall be deemed Operating Expenses: 4.-:Capital-'Expenditures. Following completion of the annual capital budget, Providence may purchase the, listed items as cash flow allows.-Capital items-not"anticipated in the budget require:approval from the City Manager-or designee'. prior':'topurchase; Capital items 'are defined as those costing $5,000 or more. All capital purchases procured in this manner will be the property of the-City. .: 4. - Admission. Policy. Providence agrees to accept- any and all bona fide emergency .patients . PSMCC. ;can accommodate. . .Providence shall treat patients ,in accordancewith the,services and capacity available at PSMCC: Providence agrees it shall not discriminate in the admission of patients or delivery of outpatient services on the basis of race, Page 7 of 31 0 religion, national origin or color. Providence agrees-that any patient seeking treatment at PSMCC,and requiring for medical reasons transport to a larger facility, has the right to select the health provider(s) and hospital_of the patient's preference. Providence agrees to honor such determinations by patients and will relate such directives to emergency transportation services. Providence acknowledges the importance to the people-of'Seward of having aIong- term care..facility within the City boundaries and operating at its fullest capacity; and agrees that except to the extent necessary to meet patient choice;'or the particular health or safety needs of a patient; and only for such time as is necessary to meet such needs,'ProVidence will not move or cause patients to move to other-facilities 'owned, operated or managed by Providence. The City has the right to retrospectively review'reasons for all such transfers,so long as such review is in compliance with patient confidentiality laws. The "Green House" model has been chosen by the people of Seward for the new long term care facility. The "Green House" represents the latest, state-of-the-art thinking for providing long term care. It is a trade-marked concept that provides care in home-like settings where services are brought to the residents rather than bringing residents to the services. Providence shall use its best efforts to operate the long-term care facility at full capacity, and to operate.the long-term care facility in accordance with the provisions of the Green House Project, to ensure the facility's continued qualification as an official "Green House" (see Exhibit A-The "Green House't Specifications).. _ Providence further acknowledges the importance tolthe people Of Seward of being able to receive care and treatment in a local hospital, rather than to be transported out of town,and agrees,that except to the extent necessary to meet patient choice, Or the particular health or safety needs of a patient, Providence will not move or cause patients to'move to other facilities. The City has the right to retrospectively review reasons,for all such transfers, so long as such review is in compliance with patient confidentiality laws. Page 8 of 31 • 5. Disposition.of Funds;Reporting and Administration. (a) - . Funds originating from,the operation of PSMCC and collected by Providence pursuant to This Agreement shall be received, handled, managed and disposed of as follows: (i) Providence shall deposit all funds received by it from the'operation of- PSMCC.and all amounts.advanced by the.City in a jointly held bank account or accounts bearing the name of PSMCC(hereinafter the"Accounts") in a bank or trust company approved by the City and Providence. Such funds shall in no event be commingled with other City or Providence funds. Providence shall have no liability or responsibility for any loss resulting from the insolvency,malfeasance or nonfeasance of the bank or banks in which such funds are deposited. (ii) Providence has the right to make withdrawals from and use the Accounts for the purposes of operating PSMCC and performing their obligations hereunder and paying Providence's compensation herein until the expiration or termination of this Agreement,at which time Providence shall resign as co-signatory for the Accounts. (iii) Signatories and approvals as to the amounts on all checks drawn from the Accounts shall'be.in accordance with the policies and procedures mutually agreed to by Providence and the City. . • (b) Providence will perform all billing and collection activities for PSMCC accounts receivables, will process accounts payable, and will. 'provide such other administrative, accounting and clerical services as are necessary. All revenues and cash collections including those from patients, third-party payors and other sources billed and collected by Providence, and arising out of or related to services rendered during the term of this Agreement; and all grants or portions thereof attributed to PSMCC arising out of or related to PSMCC during the Page 9 of 31 0 0 term of this Agreement,shall be used first to offset Operating Expenses of PSMCC incurred on or after the Effective Date. Providence shall aggressively collect all amounts billed for services provided at PSMCC. The excess,if any,of such revenues•over such expenses shall accrue to the City's account, and be applied in the City's sole discretion, to pay debt service on the City's existing general obligation and/or revenue bonds related,to the PSMCC, the costs of repairs, renewals, improvements or additions to PSMCC, or to cover past, present or future operating losses. • (c) Providence shall provide the City with audited year-end financial statements for the PSMCC as a co-located entity within 120 days after the end of each year. Within 60 days after the end of the fiscal year, Providence shall prepare and deliver to the City an operational report that shall provide information on services provided, new programs and services that have been initiated,programs and services that have been terminated or relocated to other facilities, statistics on patients treated, and other information of interest to the City and the community. Providence shall provide the City with three copies of the report for distribution among the City officials and membersof the community. Upon request by the City, Providence will make a representative available to make presentations to Seward City Council and community groups concerning the annual report. The information to be shared under this paragraph shall not include protected health information covered by the Health Insurance Portability and Accountability Act of 1996 and regulations adopted thereunder ("HIPAA"). (d) Providence shall maintain all financial, medical and hospital records, including admitting register books, schedules of room rentals, patients' insurance records, pertinent hospital personnel records and such other books and records as are necessary to the continued Page 10 of 31 operation of PSMCC. Original copies of medical and hospital records shall be maintained and stored at PSMCC or at anotherfacility acceptable to Providence. No Seward General records prior to July 1, 1996 may be destroyed without the consent of the City, which consent shall not be unreasonably withheld.,.. • (e) Providence will use reasonable efforts to operate PSMCC consistent with the annual budget. Under the terms of this Agreement, the City-shall have the right-lb review and approve Providence's budget. Providence shall provide the City with monthly updates comparing PSMCC's actual financial performance to the approved budget during the course of each year to ensure that the City is fully aware of the financial performance of PSMCC on a monthly basis. The parties acknowledgethat the budget is only a projection for the upcoming year, and changed circumstances may require budgetary modifications. 'Providence will notify the City of the following modifications to the budget: (i) any non-routine .and non-budgeted expenditure (including capital expenditures) within Providence's,control which exceeds$25,000, or contract in an amount greater than $25,000 annually; (ii) instigation of any litigation on behalf of PSMCC against a third party where the amount in controversy exceeds $25,000; and-(iii) settlement of any litigation on behalf of PSMCC where the amount in controversy exceeds $25,000 or the proposed settlement involves payment by PSMCC of an amount.in excess of $25,000. Providence will provide the City with monthly financial reports, including current revenues, expenses, and statements of cash flow, prepared in accordance with generally • Page 11 of 31 ' + 1 accepted accounting principles. The monthly reports'shdll include comparisons to budgeted amounts and prior-year historical comparisons. The City shall have access to all financial information related to PSMCC.- Providence will timely notify the City in the event there is a decrease in the number of resident physicians, or an increase in the use of contract)medical services, such as traveling Registered Nurses.' i 6. Annual Fixed Periodic Fee. For each full calendar year beginning July 1, 2008, the City shall pay Providence an Annual Fixed Periodic Fee ("AFPF") equal to $800,000 , payaI ble by the City quarterly, in arrears. This fee will replace any allocated costs and/or management fee computed under the provisions of the previous agreement, for the period January 1, 2008 through June 30, 2008. Partial years shall be pro-rated. Beginning July 1, 2009, the;AFPF will be adjusted based on the Consumer Price Index for the twelve-month period ended June 30,2009'(Anchorage, Alaska, All Urban Consumers Not Seasonally Adjusted, Base:1982-1984) Both parties understand and agree that the City has other financial obligations to Providence pursuant to the terms of this Agreement. The Annual Fixed Periodic Fee will be renegotiated for the period beginning January 1,2010,as necessitated by the completion bf the new long-term facilify. 7. Employment. ' F (a) All personnel of PSMCC during the term of thisl'Agreement shall be employees of Providence. Providence shall adopt its own employment policies and procedures. Providence agrees to select and hire an individual to serve as the Administrator of PSMCC (the "Administrator"). The City shall have the right to participate in,and ask for a review process Page 12 of 31 regarding.the selection of an Administrator. The Administrator.shall be Providence's primary • representative wit;respect to communications to the City..All costs of.Providence's employees at PSMCC are deemed to be Operating Expenses. (b) Termination of Employees. Upon the earner of termination or expiration of this Agreement, Providence shall terminate the employment of all employees identified by ' Providenceas primarily utilized at PSMCC under this Agreement. (c) The City shall defend, indemnify, and hold Providenceharmless from, all-other claims or liability for employee benefits earned or employeeclaims made. relating to employment with Wesley prior to April 28,2002. 8. Medicare and Medicaid Reimbursement. From and after the Effective Date, Providence shall maintain.Medicare and Medicaid certification and shall prepare all Medicare/Medicaid cost reports in a timely manner andshall provide all draft cost reports to the City for review and comment no less than 30 days prior to the date of submission, understanding that Providence may not be able to include the "Home;Office" cost report at that time. Alternatively, theparties may agree to have the City hire an independent consultant-.to prepare the cost report. All expenses incurred within this Section are considered Operating Expenses and shall be paid as costs.from Providence. The City may, as Operating Expenses, have the cost reports prepared and/or analyzed by a financial consultant. Page 13 of 31 i a 9. Replacement Facility. The City is in the process of constructing a new long-term care'facility which'will be operated by Providence as part of PSMCC, and in accordance with the guidelines established for official Green House Projects.' Upon licensure of'the=new facility by the State of Alaska as a nursing home and certification from the federal government as a skilled nursing facility, use of the current long-term care facility property will cease and all long- , term care services shall thereafter be provided at the newly constructed long term care facility on City property. The term "PSMCC" as used in this Agreement means the hospital site and the existing long-term care site until all long term care operations are moved to the new site. Thereafter, "PSMCC" means the hospital and green house sites. Transition costs shall be included in Operating Expenses. 10. Equipment. (a) Providence shall maintain all equipment at PSMCC,regardless of ownership. (b) Providence will retain title to all PSMCC equipment owner! by Providence. The City will retain title to all PSMCC equipment owned by the`City. Providence may purchase replacement or additional equipment to be used in the maintenance or improvement of Providence's operations of PSMCC. Such additional equipment shall be the City's property, and shall be tagged and recorded in the financial records,as such. 12. Working Capital and Cash Flow (a) Providence will pay Operating Expenses'as they become due, using funds from the Accounts and provide the City with information satisfactory to the City supporting such transfer of funds from City to Providence. Providence will assure that all Operating Page 14 of 31 Expenses will be paid,consistent with the various terms and conditions:of.-vendors, as well as the operating budget and applicable regulations governing employee pay practices..In the event insufficient fundsare;available to pay Operating Expenses; Providence will notify..the ,City verbally and in writing via fax and Email. Providence will thenhave•the sole;,discretion.to.require payment as described.in_Subsection 12 (b) or Subsection 12 (c).,, In the;event the iCity fails to transfer funds adequate.to support Operating Expenses, in,accordance,with Section,12(b) or 12(c), and such failure.is. not cured within 60 days of theoriginal notice, Providence may terminate this Agreement by providing the City with 30 days' advance written notice of such • termination. (b) The City shall place a minimum of $500,000 of Emergency Funds into the Seward account.Such funds maybe used for capital or operating shortfalls only and require the prior written approval of the.City Manager or designee. In the event that shortfalls are expected to bein excess of,$500,000, Providence will notify the City and-within sixty (60) days of receiving such notice,the City will transfer sufficient funds to,PSMCC to cover the shortfall. (c), To, the extent that the Accounts do not. have sufficient cash ,available to 'reimburse Providence for.:costs, Providence may, at its sole discretion, charge interest for the cumulative unpaid portion of the monthly amount due to Providence Alaska Medical Center. Interest will be calculated monthly at the Prime Rate + 1% on the average outstanding balance for fhe month,where the Prime Rate is defined in.the Wall Street Journal Financial Section. Principal plus unpaid interest,must be,fully paid by December 31, provided however, that-this date may be extended by Providence only upon its written consent. In the event the City fails to make such required, payments, the City agrees to -pay on demand, all -costs of: collection,--including reasonable legal expenses and attorneys fees,incurred in enforcing this repayment. . Page 15 of 31 i 0 , 13. Supplies. Providence shall, as part of its Oper:,ating Expenses,supply and maintain all expendable supplies as may be required in Prbvidences discretion for the proper operation of the PSMCC. Upon termination of this Agreement, Providence will leave behind all of the supplies in inventory as well as floor stock items maintained atthe Property. • 14. Condition on Surrender. Upon termination or expiration •of this Agreement, Providence shall surrender the Property to the City in substantially the'same condition as exists on the Effective Date, except for reasonable wear and tear, construction and demolition required or permitted under the terms of,this Agreement and damage by fire and other risks covered by the insurance policy in Section 16. 15. Alterations. Providence shall have the right to make alterations, additions, improvements and renovations to PSMCC as Operating Expenses, provided: (a) Providence shall notify the City with respect to any such work requiring any substantial expenditure; (b) such work shall not'adversely affect the structural integrity of PSMCC or diminish the value thereof; (c) any suchwOrk shall be performed in a good and workmanlike manner and in conformance with'all applicable building, fire and health regulations; and (d) the City shall have. approved in writing such work in advance, in the City's sole discretion. I 16. Insurance. (a) Providence shall either obtain or continue, occurrence-based, professional (including medical malpractice) and general liability insurance relating to PSMCC as Providence,in its sole opinion, deems necessary and sufficient,and maintain such liability insurance coverage for PSMCC during the term of this Agreement. Such insurance shall provide coverage for personal injuries, death or property damage td PSMCC in an amount of at least$5 million per occurrence and$10 million annual aggregate; provided, however that Providence's Page 16 of 31 0 reasonable allocated cost for providing or continuing such insurance,on the City's behalf shall be deemed an Operating Expense. In addition; Providence shall maintain insurance,in reasonable amounts,subject to reasonable terms, provisions and.customary exclusions,for professional liability and workers' compensation for all Providence employees who provide services at PSMCC pursuant to this Agreement. Providence shall'also maintain automobile,. crime, directors and officers, property,earthquake and fiduciary insurance coverage.(as requested,by the City) relating to PSMCC and maintain such insurance coverage for PSMCC during the term of this Agreement. Any insurance obtained or provided by Providence under this Section may be provided by insurance or alternative risk programs which may include self- insurance programs, provided such alternative risk or self-insurance programs are fully funded (confidence level of 80%or higher) for any reasonably projected liabilities, and contain customary and reasonable deductible and coinsurance amounts. The City hereby acknowledges that Providence has informed it,of Providence's insurance's deductible/co- insurance amounts,as evidenced by Exhibit"G". The Operating Expenses will include the payment of such deductible/coinsurance amounts. All costs incurred by Providence under the terms of this Section 17(a) shall be deemed OperatingExpensesand paid by City to Providence pursuant to the terms of this Agreement. The Operating Costs shall include the payment of such deductibles/co-insurance in the event of any loss or casualty covered under the insurance provided by Providence hereunder. (b) The City hereby acknowledges and agrees that upon the earlier of termination or expiration of this Agreement, Providence shall no longer provide nor arrange for the provision of any insurance of anykind whatsoever to PSMCC. Page 17 of 31 0 (c) The minimum amounts and types of insurance required under this section shall be subject to revisionin accordance with standard insurance practices,in order to provide continuously throughout the Term,a'level of protection consonant with good business practice and:accepted standards in the industry. Such factors as increases in the cost of living shall be utilized in assessing whether the minimum insurance requirements should be increased: The City shall notify Providence of any required changes in insurance'coverage., All insurance policies shall include a waiver of subrogation and shall provide for 30 days' notice to the City of cancellation and/or material change in policy terms. All such policies shall be written either by insurance companies legally authorized to do business in the State of Alaska and acceptable to the City,or by self-insurance Under the same terms as the policies for healthcare centers or clinics owned or operated by Providence,and acceptable to the City. The City shall be named as an additional insured party on each such policy of insurance,and certificates thereof shall be furnished to the City. Nothing herein shall be construed as a representation by the City as to the sufficiency of any insurance coverage for any purpose. • 17. No Assumption of Liability; Indemnification. (a) : During the term of this Agreement;Providence shall not assume or be liable for any claim,liability, or obligation of PSMCC,whether known oil unknown,Mixed or contingent, accrued or unaccrued, arising from Providence's operation ofPSMCC pursuant to this Agreement,except where such claim, liability or obligation arises from Providence's negligence or material breach of this Agreement. (b) During the term of this Agreement,the City shall not assume or be liable for any claim, liability or obligation arising from its responsibilities and duties under the terms of this { Page 18 of 31 4 r Agreement,whether,known or unknown,fixed or-contingent, accruector unaccrued pursuant to this Agreement,except where such claim,liability or obligation arises from the Citys negligence or material breach of this Agreement. (c) The parties will defend;indemnify and hold each other harmless from anyloss, claim or damage arising from the negligent acts and omissions of their respective employees, officers and,agents,•including negligence connected with performing their obligations under this •Agreement. In The.event that loss or damage results from the conduct of more than one party, each party agrees to:be responsible-for its own proportionate share of the claimant's-total '- damages under the laws of the state-of Alaska. (d). The obligations.:under this Section 18 shall survive any termination or expiration of this Agreement and shall continue until the expiration Of the applicable statute of limitations (with extensions) relating to the causes of action at issue. - ' • - (e) Providence shall have no obligation for, and the City shall indemnify and hold Providence harmless from and against, any and all liability:with respect to any claims resulting from the hegligence of the.City'orifs agents-or employees, or any claims arising out of acts or omissions which occurred.prior.to (a) April 28;2002 with regard to the existing long term care site or(b) 1996 with regard to.the'hospital site. - - - • 18. Assignment. This Agreement may not be'assigned by Providence except in whole.to an affiliate of Providence, as "affiliate" is defined in AS 10.06.990(2). Each and every Page 19 of 31 proyision of this Agreement shall inure to the benefit of and'shall be binding upon the successors "in interest of Providence and the City. ' 19 Early Termination. Either party shall have the option in its sole discretion, to terminate this Agreement upon twelve (12) months written notice to the other party. 20. Religious and Ethical Directives: Termination! Providence.shall not be obligated to provide any services at PSMCC that are in conflict with the Providence Health System Mission and Core Values and the Roman Catholic moral tradition as articulated,in such documents as The Ethical and Religious Directives for Catholic Health Care Facilities, as amended from time to time. Providence shall at all times have the right, power and duty to operate PSMCC in accordance with, and to make decisions that in Providence's reasonable discretion are necessary or desirable to comply with such Directives. If at any time during the term, as a result of changes to Alaska law or regulations, Providence shall be_required to operate PSMCC in a manner that is not consistent with such Directives, then at its option, Providence may terminate this Agreement upon 60 days advance written notice. 21. Termination for Cause. (a) Either party may terminate this Agreement in the event of breach of this Agreement by the other party where such breach is not cured within.thirty (30) calendar days after the non- breaching party gives written notice of the breach to the breaching party. (b) This Agreement shall automatically terminate in the:event either party files a petition in voluntary bankruptcy, makes an assignment for the benefit of creditors, or takes any other Page 20 of 31 0 action,voluntarily or:involuntarily under any state or federal statute for the protection of its debtors. (c) Either party-may immediately terminate this Agreement in the event.the other:party attempts to limit or otherwise avoid its obligations set forth in'Section 17 of this Agreement. (d). The dissolution or,liquidation of Providence, `other than as the result of merger or consolidation under conditions permitting continued full compliance with the terms of this Agreement,shall be cause for termination by the City. (e) The cessation by Providence of use of the Property for the purposes contemplated hereby for a period of thirty (30) consecutive days, except for periods when the same may be untenantable shall be cause for termination by the City, and no Annual Fixed Periodic Fee shall be owed following such cessation of use. 22. Winding' Uo. This.,Section 22:-shall survive termination or expiration of this Agreement. poop the termination or expiration of this Agreement, the followirig procedure shall be followed after the effective date of expiration or termination ("termination date"): (a) Providence shall work cooperatively with the City to facilitate a smooth transition of the operation/management of PSMCC. . (b) The City shall retain as its property any equipment on the Property as of the expiration or termination of the Term to the extent that such equipment was acquired with the Page 21 of31 0 V y PSMCC or City funds: The City may purchase, free and !clear of any encumbrances, any equipment owned by Providence at its then net book value: Notice of the City's exercise of this option shall be effected by notice given at any time before the expiration date. Providence shall have the right to remove from,the Property at its expense, any or all equipment that-the City has,not elected to retain under this paragraph. (c) Providence shall give the City, or such other person identified by the City, all records required for continued operationsofPSMCC. i - (d) All licenses and permits incident to operation of the PSMCC will be transferred to an operator identified by the City, including, but not limited to transfer of permits for and inventories of alcohol, narcotics and dangerous drugs. Providence will file a final cost report within 45 days after termination. (e) Upon termination, all accrued revenues and, expenses related to the ordinary course of business shall be the.City's. Such expenses shall include any fees owed to Providence under this Agreement,including an amount equal to the final;bi-weekly payroll costs. 23. Notices. Any notice permitted or required hereunder shall be in writing and shall be deemed given on the date delivered in person,sent by electronic mail or•fax, or deposited in the United States certified or registered mail,postage prepaid, and addressed as follows: - To the City: City of Seward P.O. Box 167 410 Adams Street . i .. Seward, Alaska 99664-0167 ATTN: City Manager - Phone: 907.224.4047 Page 22 of 31 Fax No.: 907.224.4038 Email: citymgr@cityofseward.net To,Providence: , ; Providence Health and Services-Washington d.b.a. Providence Health and Services-Alaska 3200 Providence Drive• P.O. Box 196604 Anchorage,Alaska 99519-6604 ATTN: Chief Executive, Alaska Service Area Fax•No.:907,261-3041; • Email: susan.humphrey-barnett@providence.org Such addresses may be changed by either party by ten (10) days' prior written notice to the other party. 24. Authority. Each individual executing this Agreement on behalf of Providence or the City represents and warrants that he or she is duly authorized to execute and deliver this Agreement on behalf of such party, that all actions by such organization have been taken to authorize execution, delivery and performance of this Agreement, and that this Agreement is binding upon such party. The individuals signing on behalf of Providence further warrant and represent that they are authorized to act on behalf of Providence in all matters relating to this Agreement. 25. Representations and Warranties of Providence. As of the Effective Date, Providence hereby represents and warrants as follows: (a) Providence is a Washington non-profit corporation in good standing under the laws of the State of Washington and authorized to do business in Alaska. (b) Providence has full corporate power and authority to carry on its business as now conducted and to enter into this Agreement. The execution and delivery of this Agreement has been authorized by proper corporate action, and this Agreement constitutes a valid and legally binding obligation of Providence. Page 23 of 31 1 \ 0 (c) Except as may have already been obtained, no consent or approval of any trustee or holder of any indebtedness or obligation of Providence, and no consent, approval, permission, authorization, order, or license of any governmental authority, is required to be obtained by Providence for the 'execution and delivery of this Agreement or any other instrument or agreement required of Providence under this,Agreement. • (d) Providence is not subject to 'any charter, bylaw, or contractual limitation or provision of any nature whatsoever which in any way limits,restricts, or prevents Providence from entering into this Agreement or from performing any of its obligations hereunder. • (e) Neither the execution and delivery of this Agreement, and the consummation of the transactions contemplated hereby, nor the fulfillment of or compliance with the provisions hereto, materially conflicts with, violates, or breaches any charter, bylaw, or stock provision of Providence, any of the material terms, conditions, or provisions of any indenture, instrument, or agreement to which Providence is a party or by which Providence is bound, any statute, rule or regulation, or any judgment, decree, or order of any court or agency binding on Providence, or constitutes a default under any of the foregoing which has not been waived or consented to in writing by the appropriate party or parties, or results in the creation or imposition of any lien, charge, security interest, or encumbrance of any nature whatsoever upon any of the property or assets of Providence not permitted under the terms of any restriction, agreement, instrument, statute,governmental rule or regulation, court order,judgement,or decree. Page 24 of 31 ;y. (f) To the knowledge of Providence, there is,no action, suit,,proceeding, inquiry, or investigation by or before any court, governmental agency, or public board or body pending or threatened against Providence which (i) affects or seeks to prohibit, restrain, or enjoin the execution and delivery of this Agreement, (ii) affects or questions the validity or enforceability of this Agreement, or (iii) questions the power or authority of Providence to carry out the transactions contemplated by,or to perform its obligations under,this Agreement. (g) When duly executed, this Agreement will be enforceable against Providence according to its terms, except as may be limited by bankruptcy, insolvency, reorganization, or other laws affecting creditors'rights generally as amended from time to time. (h) Any certificate signed by an officer of Providence duly authorized to execute such certificate and delivered pursuant to this Agreement shall be deemed to be a • representation and warranty by Providence as to the statements made therein. (i) The execution, delivery, or performance of this Agreement or consummation of fhe transactions contemplated by this Agreement or compliance by Providence with any of the provisions of this Agreement will not violate any statute (including Alaska's Certificate of Need laws), rule, regulation, ordinance, code, order, judgment, ruling, writ, injunction, decree, or award. 26. Representations and Warranties of the City. The City hereby represents and . warrants that neither the execution,delivery or performance of this Agreement nor the consummation of the transactions contemplated by this Agreement, nor compliance by the City with any of the provisions of this Agreement,will: Page 25 of 31 • (a) violate or conflict with any provision of Seward's City Charter or the Seward City Code; (b) violate,conflict with,or result in a breach of any provision of, or constitute a default (or an event which,with notice and/or lapse of time,'would constitute.a default) under, terminate,accelerate the performance required by, or result in a right of termination or acceleration under any of the terms,conditions or provisions of any material contract,plan, indebtedness, note, bond,indenture,security or pledge agreement,commitment, license, lease,franchise,permit, agreement, or other instrument or obligation (i) to which the City is a party or(ii) by which the assets relating to PSMCC are bound;or (c) violate any statute (including Alaska's Certificate of Need laws),rule,regulation, ordinance, code, order,judgment,ruling,writ,injunction,decree or award. 27. Parties in Interest. Nothing in this Agreement expressed or implied is intended or shall be construed to confer upon any person, other than the parties hereto, any right, remedy or claim, legal or equitable, under or by reason of this Agreement, this Agreement being intended to be and being for the sole and exclusive benefit of the parties hereto. 28. Confidential Information Providence shall comply with all laws, regulations, directives or requirements in any form related to operating and managing hospitals and long- term care facilities,including, but not limited to the Health Insurance Portability and Accountability Act of 1996 ("HIPAA"), and regulations adopted under HIPAA. The City shall not have access to Protected Health Information as defined by HIPAA. City has read 45 C.F.R. 164.504(e), understands Providence's position is that 45 C.F.R: 164.504(e) applies to this Agreement, and that Providence therefore has the following,obligations: Page 26 of 31 0 • Providenceagrees to,hold all individually identifiable patient health information ("Protected Health Information") that may be shared;transferred,transmitted,or otherwise. • obtained pursuant to this Agreement strictly confidential,and provide all reasonable protections to prevent the unauthorized use or,disclosure of such information,including, but not limited to the protection afforded by applicable federal,state and local laws and/or regulations' regarding.the security and the confidentiality of patient health care information. Providence further agrees to make every reasonable effort to comply with any regulations,standards, or rules promulgated pursuant to the authority of the HIPAA,including those provisions listed below, as soon as possible. Providence may use and disclose.Protected Health Information when necessary for Providence's proper management and administration (if such use or disclosure is necessary),or to carry out Providence's specific legal responsibilities pursuant to this Agreement. Specifically, Providence agrees as follows: (1) to maintain safeguards as necessary to ensure that the Protected Health Information is not used or,disclosed except as provided herein; (2) to mitigate,if possible,any harmful effect known to Providence of a use or disclosure of Protected Health Information by Providence; (3)to ensure that any subcontractors or agents to whom it provides Protected Health Information will agree to the same restrictions and conditions that apply with respect to such information;.(4) to make available respective internal practices, books and records relating to the use and disclosure of Protected Health Information to the Department of Health and.Human.Services or its agents; (5) to incorporate any amendments or corrections to Protected Health Information when notified that.the information is inaccurate or incomplete; (6) to return or destroy all Protected Health Information that Providence still maintains in any form and not to retain any such Protected Health Information in any form upon termination or expiration of this Agreement,if feasible or,if not feasible, Providence agrees to limit any uses of Protected Health Information after this Agreement's termination or expiration to Page 27 of 31 0 those specific uses or disclosures that make it necessary for Providence to retain the information; (7) to ensure applicable policies are in place for providing access to Protected Health Information to the subject of that information; (8) if requested-by the City, report'tb City any use or disclosure of Protected Health Information which:is not provided for in the Agreement;and (9) to make Protected Health Information and'an accounting of disclosures available to the individual who is the subject of the information or to City, to the extent required by HIPAk'• Breach of this section shall be considered material. 29. Access to Books and Records Pursuant to 42 U.S.C. Section 13995)4\1)(1), until the expiration of four (4) years after the furnishing 'of services under this Agreement, Providence shall make available and provide copies to the City, upon written request by the Comptroller of the United States Department of Health and Human Services, or upon request by the Comptroller General of the United States General Accounting Office, or any of their duly authorized representatives, a copy of this Agreement and such books; documents and records as are necessary to certify the nature and extent of the services furnished by Providence under this Agreement. If Providence carries out any of its duties under this Agreement through a subcontract, with a,value oncost of ten thousand dollars ($10,000) or more over a Svelve (12) month period, with a related organization of Providence, such subcontract shall contain a clause to the effect that until the expiration of four (4) yearsafter the furnishing of such services pursuant to such subcontract, the related organization shall make available and provide-copies to the City, upon written request by the Secretary of the United-States Department of Health and Human Services or upon request by the Comptroller General of the United States General Accounting Office, or any of their duly authorized representatives, a copy of such subcontract Page 28 of 31 and such books, documents and records as are necessary to verify the nature and extent of such costs. • 30. Miscellaneous. (a) This Agreement- constitutes the entire agreement between the parties with respect to the Property and operation of.PSMCC. Any prior representations and agreements are of no effect except to the extent provisions of the Prior Agreement survive termination by its terms. No subsequent alteration, amendment, change'or addition to this Agreement shall be binding upon the City or Providence unless reduced to writing and executed by the parties. (b) . This Agreement shall be governed by and construed in accordance with the laws of the State of Alaska,and venue for all disputesshall be in Anchorage,Alaska. (c) If any term, covenant or condition of this Agreement, or the application thereof to any person or circumstance shall,-to any extent, be invalid or unenforceable, the remainder of this Agreement, or the application of such term, covenant or condition to other persons and circumstances shall be valid and enforceable to the fullest extent permitted by law. (d) The terms, covenants and conditions hereof shall be binding upon and shall insure to the benefit of the parties hereto and their respective legal representatives,'successors and assigns. Page 29 of 31 0 • (e) One City resident will be eligible to participate as a voting member on the Providence Alaska Region Community Ministry Board which will vote on the operations .of PSMCC. (f) Nothing in this Agreement expressed or implied is intended or shall be construed to confer upon any person, firm, or corporation,'other than the parties hereto, any right,'remedy or claim, legal or equitable, under or by reason of this Agreement, this Agreement being intended to be and being for the sole and exclusive benefit of the parties hereto. (g) Nothing in this Agreement, and no performance of either party hereunder shall cause the relationship of the parties to be that of principal and agent, partners, or joint venturers, or cause the parties to be associated in any manner other than as independent contractors. • (h) The parties to this Agreement will perform their obligations hereunder consistent with applicable federal,state and local laws. IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their duly authorized representatives as of the dates set forth below. SIGNATURES: PROVIDENCE HEALTH &SERVICES WASHINGTON d/b/a Providence Health &Services Alaska Its: C /9z.A.-s#4z9 Date: /-0 /ze ex:,Es Page 30 of 31 C) (7) • CITY OF SEWARD • By: y 6- A't?e'l Citfictier Date: ° AOtref ATTEST: / - Jean Lewis City Clerk (Cif),seal) _tossIllisphyt_ Skit OF Sell,. • 4,7 0 oVaPOizetie-Y41. eto g I •, • * i SEAL 0 Fi • s.• OF ak,4 sggEgon: iit`° • .1'00 Page 31 of 31 • 0 AIX eerk k nOt Cd) AMENDMENT NO. 1 TO MANAGEMENT AND OPERATING AGREEMENT BETWEEN CITY OF SEWARD AND PROVIDENCE HEALTH&SERVICES This Amendment No. 1 ("Amendment") to the Management and Operating Agreement ("Agreement") between the City of Seward ("City") and Providence ealth & Services-Washington dba Providence Health&Services,Alaska("Providence")is made this q I- day of February,2010. WHEREAS,the City and Providence have been partners in the provision of healthcare services in Seward since June 28, 1996,and in the provision of long-term care services since April 28,2002;and WHEREAS,the current Agreement was approved on September 8,2008 with an effective date f October 8,2008 and expires April 8,2010,with options to extend for up to three additional years;and WHEREAS, the parties desire to extend the contract in order to continue their shared goal of providing quality healthcare to the residents of Seward;and WHEREAS, the parties have demonstrated a successful history of working together to promote and improve community wellness, meet community needs, improve physician longevity, enhance elder dignity through construction and operation of Alaska's first Green House long-term care facility, strengthen Seward's healthcare system,and ensure quality and patient safety. Now therefore, for and in consideration of the mutual promises and covenants herein contained, the parties agree as follows: 1. Term. Providence and City agree that the term of the Agreement is hereby extended from April 8, 2010 to April 8,2013 under the same terms and conditions as set out in the Agreement,and subject to any termination rights set forth therein. 2. Adjustment of Annual Fixed Periodic Fee. The parties hereby agree that in accordance with Section 7 "Annual Fixed Periodic Fee"("AFPF")the AFPF will continue to be adjusted annually on July 1st,based on the Consumer Price Index for the previous twelve-month period ended June 30, (Anchorage, Alaska, All Urban Consumers—Not Seasonally Adjusted,Base: 1982-1984). 3. This Amendment will take place immediately upon approval by both parties listed below. 4. Except as specifically amended pursuant to the foregoing,the Agreement shall continue in full force and effect in accordance with'the terms in existence as of the date of this Amendment. After the date of this Amendment,any reference to the Agreement shall mean the Agreement as amended by this Amendment. City of Seward: Provielezce Health&Services,Alaska: By: mmr���y,:W Philip E. Oa es 6e.e"v • "'•.' . a � �'Sz.�0 City Manager ���� osieWe ,.entive Officer ATTEST: . . • o a Jei Lewis,Fir 44044>4'j 4...y�1.0° ° °"� Ci Clerk ®.4,4, OF os ' I AMENDMENT NO. 2 TO MANAGEMENT AND OPERATING BETWEEN THE CITY OF SEWARD AND PROVIDENCE HEALTH & SERVICES—WASHINGS DBA PROVIDENCE HEALTH& SERVICES ALAS This Amendment No. 2 ("Amendment") to the Management and Operating Agreement ("Agreement") between the City of Seward ("City") and Providence Health & Services- Washington dba Providence Health & Services Alaska ("Providence") is made this 22"a day of February, 2010. RECITALS WHEREAS, the City and Providence are parties to a Management and Operating Agreement ("Agreement") which became effective October 8, 2008 and which expires April 8, 2013, under which Providence manages Providence Seward Medical & Care Center("PSMCC"); and WHEREAS, said Agreement includes provisions for Providence's management of Seward Mountain Haven and for its financial management of PSMCC; and WHEREAS, effective October 1, 2009, Seward's new long-term care facility was opened and PSMCC vacated the former Wesley facility and began operations of Seward Mountain Haven; and WHEREAS, the City issued $27 million in revenue bonds to finance the construction and equip Seward Mountain Haven on March 18, 2008, pursuant to Resolution 2006-28 passed by the Seward City Council on March 13, 2006 and subsequently amended by Resolution 2007-050 approved on May 14, 2007; and WHEREAS, the City pledged the revenues of Seward Mountain Haven as security to repay said revenue bonds; and WHEREAS, revenues from Seward Mountain Haven are collected by PSMCC and this Amendment proposes to establish the procedure by which these revenues will be transferred from PSMCC to the City for purposes of repaying bonded indebtedness; and WHEREAS, a primary consideration in the issuance of revenue bonds for Seward Mountain Haven was the fact that under current Medicaid rate-setting regulations, reimbursement rates are established on a cost-based reimbursement methodology, which is assumed to, over the long-run, recover the capital costs associated with Seward Mountain Haven from the capital-component of reimbursement rates. It is the capital portion of the reimbursement rate which is intended by this Amendment to be used to repay bonded debt. The capital component of the Medicaid reimbursement rate would apply to patients who are eligible for Medicaid at the time of receiving service at Seward Mountain Haven. The City and 1 Providence understand that the Medicaid reimbursement methodology is subject to change, and therefore provides no guarantee of future revenues to repay facility capital costs; and • WHEREAS, the parties understand that any anticipated cash shortfall, whether identified in the annual budget or recognized subsequent to passage of the annual budget, will require coordination between the City and Providence to determine how to address the shortfall. The City is more likely to require operational solutions to address revenue shortfalls, than to expect contributions from the Seward City Council. The City has; expressed its expectation that the facility will strive to operate at a break-even, and therefore operational changes will be expected in order to balance the budget; and WHEREAS, Section 12 of the Agreement defines the City's obligations to ensure that sufficient funds are on hand to pay the costs of PSMCC, and defines Providence's sole discretion to require payment by the City for any shortfall. The City and Providence continue to work cooperatively to ensure that such shortfalls are timely repaid by the City as required by the Agreement. AMENDMENT NOW THEREFORE, the parties hereby agree as follows: 1. Revised Section 1(b). Section 1(b) to the Agreement is hereby revised and replaced in its entirety with the following: (b) General Control of PSMCC. Although the City has contracted day-to-day operations and management of PSMCC to Providence during the term of this Agreement, the City shall continue to own and have financial responsibility for PSMCC. The City shall also have control over the facility other than day-to-day operations. The Parties understand therefore, that funds associated with operating PSMCC, whether operating or capital in nature, are the City's responsibility, and the City has the authority to determine that revenues are used first to repay debt obligations, and then to pay for operations. The Parties further understand that the City has the financial obligation to cover any shortfalls associated with operating PSMCC, including Seward Mountain Haven. The City represents that, as of the Effective Date, it has a license as, owner of PSMCC, and has listed Providence on the license as the manager to operate the PSMCC. Providence agrees that it will take all steps necessary to maintain and continue the PSMCC and its licenses, permits and certificates for the term of this Agreement, and the parties agree to take all steps necessary to preserve the designation of co-location at PSMCC, as such designation is outlined in the regulations published by. the State of Alaska Department of Health and Social Services ("DHSS"). • 2. Revised Section 9. Section 9 to the Agreement is hereby revised and replaced in its entirety with the following: 2 • 9. Replacement Facility. The City constructed a new long-term care facility which will be operated by Providence as part of PSMCC, and in accordance with the guidelines established for official Green House Projects. Upon licensure of the new facility by the State of Alaska as a nursing home and certification from the federal government as a skilled nursing facility, use of the former long-term care facility property ceased and all long-term care services shall thereafter be provided at the newly constructed long term care facility on City property. The term"PSMCC" as used in this Agreement means the hospital site and the existing long term care site until all long term care operations were moved to the new site. Thereafter, "PSMCC" means the hospital and green house sites. Transition costs shall be included in the Operating Expenses. (a) The parties agree that all the revenues resulting from operation of Seward Mountain Haven will be allocated first for the purpose of capital debt repayment, then for operations,and finally, for additional capital purchase or investment. (b) PSMCC will transfer to the City,no later than two months after the applicable month for which payment is made, an amount equal to the capital component of the State of Alaska DHSS daily rate for each billed patient day in the applicable month regardless of payor type. 3. Capitalized. Terms.. All capitalized terns in this Amendment shall have the same meaning given to such terms in the Agreement unless otherwise specified in this Agreement. 4. Continuation_of Agreement. Except as specifically amended pursuant to the foregoing, the Agreement shall continue in full force and effect in accordance with the terms in existence as of the date of this Amendment. After the date of this Amendment, any reference to the Agreement shall mean the Agreement as amended by this Amendment. The Parties have executed this Amendment on the date first above written. AGREED TO BY AND BETWEEN: For CITY OF SEWARD: VA/ )73itZ • Jam-Or nt, ity anager Date For PROVIDENCE HEALTH& SERVICES—WASHINGON DBA PROVIDENCE HEALTH& SERVICES ALASKA: Bruce Lamo e x,Chief Exec, tive Officer Date 3