Have "evergreen" provider contracts lost their bloom?
An "evergreen contract" is one that automatically renews itself from year to year, unless one of the contracting parties acts at specified intervals (which may be annually or as long as several years) to give notice in the manner required to terminate the otherwise perpetual agreement. Such contracts are in contrast to fixed-term agreements, where both parties must affirmatively agree to extend the term beyond the initial specified term. Such "evergreen contracts" are legally valid, but for compelling reasons health plans and providers may want to consider terminating their evergreen provider contracts now in favor of a contract with a fixed term.
McDermott, Will & Emery, Los Angeles, USA.
Terese
T
Mosher-Beluris
J Peter
JP
Rich
D002140:California; D032982:Contracts / Q000145:classification* / Q000331:legislation & jurisprudence*; D008329:Managed Care Programs / Q000458:organization & administration*