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In the scenario, the contract negotiations between North Creek Healthcare and the community hospital concluded with an agreement on non-financial (legal) terms. Suggest the most critical element of the contract and the impact to the short-term and long-term operational strategy of a community hospital. Indicate the potential implications to the hospital’s financial targets.
North Creek Healthcare and the Community Hospital According to Mota and Moreira (2015) an agreement on non-financial (legal) terms is legally binding and should in effect have the information that the parties to the agreement wish to share clearly outlined. The information provided in the agreement provides a proper basis for evaluation. Some of the common elements found in the agreement include, the role of each party to the agreement, an outline on how these duties are to be performed and how the mandates are to be conducted. These types of agreements are essential in helping determine and evaluate whether the parties will work together in the future (Mota & Moreira, 2015). One major benefit about this kind of agreement …show more content…
This will be a result of the medical practitioners made available by North Creek Healthcare. This extra capacity will see the community hospital grow while the North Creek Healthcare will grow its goodwill in the society. On the other hand, in the Long term this kind of a contract ensures that confidentiality is upheld in bid to promote future prospects of business relationship. This means that both parties won’t disclose any details regarding their contract to third parties. If a partnership happens in future then this will help create a larger market for North Creek and as a result growth in revenues is
Course
Institution
Instructor
Date
In the scenario, the contract negotiations between North Creek Healthcare and the community hospital concluded with an agreement on non-financial (legal) terms. Suggest the most critical element of the contract and the impact to the short-term and long-term operational strategy of a community hospital. Indicate the potential implications to the hospital’s financial targets.
North Creek Healthcare and the Community Hospital According to Mota and Moreira (2015) an agreement on non-financial (legal) terms is legally binding and should in effect have the information that the parties to the agreement wish to share clearly outlined. The information provided in the agreement provides a proper basis for evaluation. Some of the common elements found in the agreement include, the role of each party to the agreement, an outline on how these duties are to be performed and how the mandates are to be conducted. These types of agreements are essential in helping determine and evaluate whether the parties will work together in the future (Mota & Moreira, 2015). One major benefit about this kind of agreement …show more content…
This will be a result of the medical practitioners made available by North Creek Healthcare. This extra capacity will see the community hospital grow while the North Creek Healthcare will grow its goodwill in the society. On the other hand, in the Long term this kind of a contract ensures that confidentiality is upheld in bid to promote future prospects of business relationship. This means that both parties won’t disclose any details regarding their contract to third parties. If a partnership happens in future then this will help create a larger market for North Creek and as a result growth in revenues is