PARTICIPATING PHYSICIAN AGREEMENT

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1 PARTICIPATING PHYSICIAN AGREEMENT This Participating Physician Agreement ( Agreement ) is made this day of, in the year 2013 ( Effective Date ) by and between Advocate Sherman Physician Partners ( PHO ), an Illinois corporation and member of Advocate Health Partners d/b/a Advocate Physician Partners ( APP ) and [physician] or [medical group name on behalf of each individual physician listed on Exhibit G], ( Physician ) a physician duly licensed in the State of Illinois to practice medicine in all its branches and a member in good standing on the Medical Staff of Advocate Sherman Hospital ( Hospital ) (each a Party and collectively the Parties ). RECITALS WHEREAS, Each PHO is a network of health care providers in the geographic region of the Hospital and a member of APP. Through a Corporate Membership Agreement with APP, PHO delegates services, including but not limited to managed care contracting, credentialing and physician contracting services to APP. WHEREAS, APP is a provider governed entity which arranges for financially and clinically integrated managed care contracting on behalf of PHO and its member physicians in order to arrange health care services in a cost effective and efficient manner for the benefit of APP member organizations and physicians, Managed Care Organizations and ultimately health care consumers; and WHEREAS, APP has established a clinical integration (CI) program in order to improve health outcomes and reduce the costs of patient care through improved coordination of care, active management of chronic disease states, and participation in clinical quality improvement initiatives. The CI program, a nonexclusive collaborative effort of APP member physicians, Advocate hospitals and PHOs, also creates financial incentives for those physicians who perform well against defined measures; and WHEREAS, APP has and/or will enter into clinically or financially integrated written agreements with MCOs on behalf of Physician to arrange for the provision of Covered Services to Members and Physician desires APP to enter into such agreement on PHO and Physician s behalf; and WHEREAS, the agreements between APP and MCO may require the participation of a physician panel consisting of individual physicians who have executed an Agreement with APP; and WHEREAS, Physician desires to be included in the physician panel and provide health care services to Members and APP and PHO desire to include Physician and secure such services for Members. NOW, THEREFORE, in consideration of the promises and the terms, covenants, and conditions set forth herein, the parties mutually agree as follows: SECTION 1 DEFINITIONS For the purposes of this Agreement the following terms are defined as follows: 1.1 Clinical Integration Program. A non-exclusive, active and ongoing program of clinical quality initiatives developed, implemented, and operated by APP in collaboration with Hospital in order to create 1

2 a high degree of coordination and interdependence among Participating Health Care Professionals with the intent to increase value and efficiency, and improve patient outcomes. 1.2 Co-Payment. Payment(s), including but not limited to co-pays, deductibles and co-insurance, which may be collected directly from a Member in accordance with the terms of this Agreement, the summaries of benefits, or a Group Services Agreement. 1.3 Covered Services. Those Medically Necessary services provided to a Member pursuant to the terms of a Group Services Agreement and/or those services for which payment is available pursuant to the terms of a Group Services Agreement. 1.4 Group Services Agreement. The agreement executed between MCO and an employer, labor union, trust, or other organization which describes the costs, procedures, benefits, conditions, limitations, exclusions, and other obligations to which Members are subject under MCO s health services plan. 1.5 Health Care Professionals. Physicians, nurses, podiatrists, physicians assistants, clinical psychologists, social workers, nutritionists, physical therapists, speech therapists, dentists, chiropractors and other professionals engaged in the delivery of health services and licensed, as required, by the State of Illinois. 1.6 Managed Care Organization ("MCO"). A duly licensed entity (i) qualified to arrange for the provision of comprehensive medical services to Members and (ii) which has entered into a written agreement with APP pursuant to which APP agrees to arrange for the provision of Covered Services to Members by Physician. This term may include without limitation Health Maintenance Organizations ( HMO ), Preferred Provider Organizations ( PPO ), Preferred Provider Arrangements ( PPA ), Point of Service Plans ( POS ), and such other forms of alternative health care delivery and finance systems which may from time to time contract with APP to arrange for the provision of Covered Services to Members. 1.7 Medical Director. A duly licensed physician or physicians designated by the APP and/or PHO Board of Directors to monitor the arrangement of medical services and coordination of medical issues arising out of the provision of Covered Services to Members. For purposes of this Agreement, Medical Director shall mean the Medical Director or his or her authorized designee. 1.8 Medically Necessary. Medical or surgical treatment which Member requires, as deemed appropriate and necessary for the symptoms, diagnosis and treatment by one or more Participating Physicians in accordance with generally accepted medical and surgical practices and standards; provided, however, that any services which are not determined to be Medically Necessary according to APP s or MCO s utilization review standards shall not be deemed to be Medically Necessary for purposes of payment under this Agreement. 1.9 Member. Any individual, or any one of his/her qualified dependents entitled to Covered Services pursuant to the terms of a Group Services Agreement Participating Health Care Professional. Those Participating Primary Care, Participating Specialty Care Physicians and Health Care Professionals who have entered into a Participating Physician Agreement with APP or are obligated under an such agreement to provide or arrange for Covered Services to Members Participating Primary Care Physician. An internist, pediatrician, or family practitioner who has executed a Participating Physician Agreement with APP to provide Covered Services to Members. Where required by an agreement between APP and MCO, the Participating Primary Care Physician 2

3 selected by each Member shall be responsible for the provision, coordination, supervision, monitoring, and appropriateness of care rendered to that Member Participating Specialty Care Physician. A Physician, other than a Participating Primary Care Physician, who has executed an Agreement with APP to provide specialty care Covered Services to Members either upon referral by an APP Participating Primary Care Physician or as otherwise permitted by an agreement between APP and MCO Provider Handbook. An administrative document that is available to each Participating Health Care Professional setting forth certain APP Policies and Procedures. SECTION II RESPONSIBILITIES OF PHYSICIAN 2.1 Contracting. In compliance with applicable laws and regulations, Physician authorizes APP to act as Physician s agent for the purposes of entering into agreements with MCOs for the provision of Covered Services to Members. 2.2 Verification and Authorization. APP shall use best efforts to require MCO to maintain a method for Physician to verify Member eligibility. Physician shall comply with the method of verifying eligibility and authorization of Covered Services as agreed upon by APP and MCO. 2.3 Scope of Services/Standard of Care. Physician shall arrange for the provision of or provide all Covered Services to Members and will remain solely responsible for the quality of health care services provided to Member. The operation and maintenance of the office, facilities and equipment of Physician, and the provision of all Covered Services, shall be solely and exclusively under the control and supervision of Physician and shall be rendered in accordance with generally accepted medical practice and professionally recognized standards. 2.4 Referrals of HMO Members. As required by the Group Services Agreement, Participating Primary Care Physicians shall refer HMO Members, when appropriate, to Participating Specialty Care Physicians for Covered Services. Participating Specialty Care Physicians shall provide Covered Services to HMO Members only when HMO Members are referred in accordance with the Group Services Agreement or the APP utilization management program. Should a Participating Primary Care Physician determine that an HMO Member requires Covered Services, which are not available from a Participating Health Care Professional, Participating Primary Care Physician shall obtain authorization of the Medical Director prior to referring such HMO Member to a non-participating Health Care Professional. 2.5 Admission of HMO Members to Hospital. Physician shall admit HMO Members requiring hospitalization only to Hospital and in compliance with the requirements of APP s agreements with MCO; provided, however, that Physician may, with the express authorization of Medical Director, admit HMO Members to another hospital for care which, at Medical Director s determination, the Hospital is unable to provide. When an HMO Member will be admitted for surgery, Physician shall admit the HMO Member on the day of surgery unless an earlier admission is Medically Necessary and approved by Medical Director. 2.6 Non-Discrimination. Physician shall not differentiate or discriminate against Members with respect to race, religion, sex, color, age, nationality, origin, health status, or source of payment in the provision of health care services. Physician shall not deny, limit, or condition the coverage or furnishing of Covered Services to Members on the basis of any factor that is related to health status, including, but not limited to the following: (i) medical condition, including mental as well as physical illness; (ii) claims experience; (iii) receipt of health care; (iv) medical history; (v) genetic information; (vi) evidence of 3

4 insurability, including conditions arising out of acts of domestic violence and/or (vii) disability. Physician shall not discriminate with respect to quality of care or otherwise between Members and Physician s other patients. 2.7 Availability. In accordance with APP policies and procedures and generally accepted standards for the provision of care Physician shall, in cooperation with APP, make Covered Services available to Members during normal business hours. Physician shall be available or make arrangements acceptable to APP for the provision of emergency Covered Services on a twenty-four (24) hour, seven (7) day per week basis. 2.8 Patient Records/Data Provision. (a) Subject to applicable law, including without limitation all laws governing Protected Health Information, and in accordance with APP and MCO requirements, Physician shall maintain medical, financial and administrative records concerning services provided to Members in accordance with industry standard. Physician shall maintain records and information relating to Members in an accurate and timely manner and shall ensure timely access by Members to the records and information that pertain to them. Physician shall provide APP or MCO with accurate encounter data in accordance with MCO or APP requirements and shall use electronic systems established by the Hospital or APP which will facilitate continuity of care. (b) Physician shall safeguard the privacy of any information that identifies a particular Member. Information from, or copies of, records may be released only to authorized individuals and Physician must ensure that unauthorized individuals cannot gain access to or alter Member records. Original medical records must be released only in accordance with Federal or State laws, court orders or subpoenas. Physician shall abide by all applicable federal and state laws regarding confidentiality and disclosure of Members mental health records, medical records and other health and Member specific information. (c) In compliance with applicable state and federal laws and regulations, Physician authorizes APP to collect Member data for the purposes of performance under this Agreement. (d) All records, books, and papers of Physician pertaining to Members shall be open to inspection during normal business hours by APP, PHO or MCO, and authorized state and federal authorities. The obligations of subsections (a), (b) and (d) of this Section 2.8 survive termination of this Agreement, for any reason. 2.9 Location of Services. Outpatient Covered Services provided in accordance with this Agreement shall be provided by Physician at the locations agreed to by APP, PHO and Physician. Physician shall provide sixty (60) days prior written notice to APP of any other locations where Covered Services may be offered. Upon such notice and in compliance with all other applicable requirements, other locations may be added to Physicians participation information Professional Requirements. (a) Physician shall: (i) maintain an unrestricted license to practice medicine in the State of Illinois; (ii) maintain the ability to prescribe pharmaceuticals including narcotics; (iii) maintain the appropriate medical staff membership at Hospital; (iv) maintain the ability to participate in federal and state funded health care programs, including but not limited to Medicare, Medicaid and CHAMPUS; and (v) all other APP and MCO applicable professional and administrative requirements necessary for Physician to provide Covered Services to Members. Evidence of compliance with these requirements shall be submitted to APP upon request. Physician shall cooperate with periodic evaluation of Physician s professional qualifications by APP. (b) Physician shall to notify APP and PHO immediately of: (i) a loss, sanctioning or restriction of license, narcotics number or any hospital privileges; (ii) any sanction/disciplinary action by any professional organization, managed care entity, or Hospital; (iii) a criminal 4

5 conviction; (iv) payment made pursuant to a professional liability judgment; (v) any action taken restricting or eliminating Physician s ability to participate in federal or state funded health care programs, including Medicare, Medicaid and CHAMPUS; (vi) any other matter that may affect Physician s ability to meet the professional requirements outlined in this Section Signatory Authority. The individual executing this Agreement on behalf of Physician warrants that: (i) he/she has the appropriate authority as Physician s employer, agent, or other duly authorized representative to cause Physician to be bound to the terms and conditions of this Agreement; and (ii) the execution and performance of this Agreement does not and will not violate or conflict with any material agreement or instrument to which Physician is a party. For those Agreements executed by a medical group on behalf of Physicians providing services pursuant to this Agreement (i) expressly warrants and agrees that each Physician is individually bound by, and agrees to adhere, to the terms and conditions of this Agreement; and (ii) acknowledges that in the event any Physician providing services pursuant to this Agreement is no longer affiliated or employed by group this Agreement remains in effect with Physician unless other terminated in accordance with Section VII CMS/NCQA Requirements. If APP obtains or maintains a contract with a Medicare MCO, Physician shall render services to Medicare MCO Members in accordance with the applicable terms and conditions of Exhibit A, as may be amended from time to time by Medicare MCO. In the event there is a conflict between the terms of this Agreement and the terms of Exhibit A, Exhibit A shall prevail Patient Communication. Physician shall discuss with Member(s) their health status and all medical care and treatment options which the Physician and/or the Member's treating physician deem clinically necessary and appropriate, regardless of any coverage or payment determination(s) made or to be made by APP, PHO or MCO. The Parties acknowledge and agree that nothing contained in this Agreement or in any other Amendments is intended to interfere with or hinder communication between Physician and Member(s) regarding health care services Additional MCO Requirements. Physician shall abide by the terms and conditions of Exhibit B, which contains additional Physician obligations pursuant to agreement(s) between APP and MCO(s) Fee for Service Contracting. Physician shall cooperate with APP s fee for service contracting strategy in accordance with all applicable state and federal laws and regulations. Physician acknowledges that under such fee-for-service-arrangements, Physician shall be solely responsible for implementing the arrangements except for certain centralized functions (e.g., clinical monitoring, education, data collection, credentialing, etc.) Centers for Medicare and Medicaid Services (CMS) Medicare Shared Savings Program (MSSP) Participation. Physician acknowledges that all Physicians are required to participate, on an exclusive basis for primary care physicians and on a non-exclusive basis for non-primary care/specialist physicians, in the MSSP through Advocate Physician Partners Accountable Care, Inc., APP s Medicare Accountable Care Organization, in accordance with APP Membership requirements and applicable policies. Absent an exception under law, regulation or specific APP membership policy provisions, participation (on an exclusive or non-exclusive basis, as applicable) is a condition of Physician s membership in APP. Physician agrees to execute any and all documents necessary to effectuate this participation, including execution of the Advocate Physician Partners Accountable Care, Inc. Medicare Shared Savings Program Participation Agreement, and to comply with all legal, contractual, and APP membership requirements of participation in Advocate Physician Partners Accountable Care, Inc. Notwithstanding anything in the forgoing, a breach of this Section 2.16 shall be a material breach of this Agreement. 5

6 SECTION III PAYMENT FOR SERVICES 3.1 Physician Payment. Physician shall be paid according to the fee schedule or other payment arrangement in effect as of the Effective Date, as may be amended from time to time. APP will negotiate fee schedules on behalf of Physician and shall make such fee schedules available via electronic or other means, which may include but is not limited to the APP website. PHO shall establish capitated fee schedules, which shall be available to Physician upon request. 3.2 Invoices. Physician shall submit all claims and encounter data for Covered Service provided to HMO Members in accordance with form and format required by APP or MCO policies and procedures. 3.3 Coordination of Benefits. Physician acknowledges that, under applicable coordination of benefits rules, payment for Physician services furnished to some Members will be primarily the responsibility of third parties or will be payments for which APP is entitled to receive reimbursement. Physician agrees to assist APP or MCO in maximizing recoveries under coordination of benefits and agrees to seek payment for such services from the party with primary liability prior to billing APP or MCO for the difference. In any instance where Physician obtains payment from any additional parties responsible for payment to or on behalf of Members, APP or MCO, as applicable, shall only be responsible for the difference between the amount collected by Physician and the appropriate amount identified in this Agreement. 3.4 Member Billing. For Covered Services Physician shall bill or collect from Member all Co- Payments as specified in the Group Services Agreement or Members summary of benefits. Except as permitted by this Section, Physician shall not bill or require Member to make any payment for Covered Services other than co-payments, deductibles, and co-insurance, if any, as specified in the Group Services Agreement. For Covered Services Physician shall not bill or collect from Member the difference between the payment rates agreed to in this Agreement and Physician s regular billing rates. 3.5 HMO Hold Harmless. (a) In no event, including but not limited to nonpayment by MCO, APP or PHO, insolvency of MCO, APP or PHO, or breach of the Agreement, shall Physician or its assignees or subcontractors bill, charge, collect a deposit from, seek compensation, remuneration, or reimbursement from, or have any recourse against an HMO Member for Covered Services provided pursuant to this Agreement other than as permitted in Section 3.4. The requirements of this Section 3.5 shall survive any termination of this Agreement for Covered Services rendered prior to such termination. This clause supersedes any oral or written agreement, now existing or hereafter entered into, between the Parties and the Member or person acting on the Member s behalf. (b) This provision shall not prohibit collection of payment for any non-covered Services or amounts available through Coordination of Benefits in accordance with the terms of this Agreement if Physician obtains the written acknowledgment of the Member in advance of the provision of the non-covered Service. 3.6 Member Surcharge. Physician shall not surcharge Members for Covered Services. Where a surcharge has occurred erroneously, Physician shall refund amounts collected within fifteen (15) days of APP s request for the refund. Members shall be third party beneficiaries of this Section Physician Participation Fee. Physician agrees to pay PHO an initial membership fee in an amount determined by the PHO Board of Directors and to pay APP an annual participation fee in an amount determined by the APP Board of Directors. 6

7 SECTION IV APP AND PHO SYSTEM AND STANDARDS 4.1 APP Participation Criteria. Physician shall comply with the APP Participation Criteria ( Participation Criteria ) set forth in Exhibit C to this Agreement within any applicable timeframes specified therein. APP may amend or modify the Participation Criteria at any time through action of the APP Board of Directors and shall provide notice of changes to Participation Criteria. For purposes of this Section 4.1, notice may be provided via electronic mail. In the event of a conflict between the provisions of this Agreement and the Participation Criteria, the Participation Criteria shall prevail. 4.2 Compliance. Physician shall participate in and comply with the Bylaws of the PHO and APP, the requirements of the Provider Handbook and/or APP Policies and Procedures, including but not limited to the APP quality improvement, utilization management, credentialing programs, APP electronic medical record (EMR) policy as may be amended from time to time by APP upon notice to Physician. For purposes of this Section 4.2, notice may be provided via electronic mail. 4.3 Clinical Integration Program. Physician agrees that participation in the APP Clinical Integration Program ( CI Program ) requires compliance with the CI Program as described in Exhibit D. APP may amend the CI Program at any time through action of the APP Board of Directors and shall provide notice of changes to the CI Program. For purposes of this Section 4.3, notice may be provided via electronic mail. In the event of a conflict between the provisions of this Agreement and the CI Program, the CI Program shall prevail. 4.4 Credentialing. Physician acknowledges that all information provided as part of the APP credentialing process is a material part of this Agreement and relied upon by APP in determining whether to execute this Agreement. Physician represents and warrants that all information provided during the credentialing process is true to the best of Physician s knowledge and shall notify APP within thirty (30) days of any change in such information. Physician further agrees to provide APP with all necessary releases and authorizations as may be required to independently verify the information provided. Physician authorizes APP to provide credentialing information to MCO. Based on the information provided during the credentialing process, APP shall designate Physician as either a Participating Primary Care Physician or Participating Specialty Care Physician. 4.5 Grievance Procedure. Physician shall participate in APP s consumer complaint system and in any formal MCO sponsored grievance, hearing and resolution procedures. Physician shall make every reasonable effort to resolve oral or written complaints through informal discussion, consultation, or conference, and shall keep a written record of events and action surrounding the complaint. This record shall be submitted to APP, including a copy of each complaint and a summary of the outcome. Complaints not resolved to the satisfaction of either Physician or Member, such complaint shall be submitted in a timely manner to Medical Director. Physician and Member shall have an opportunity to present their case either orally or in writing to Medical Director, who shall attempt to resolve the complaint or consult with the QI Committee for its recommendation. 4.6 Access to Premises. Physician shall permit the Medical Director and/or designee of APP, PHO, and each MCO to inspect, upon reasonable notice, the facilities, equipment and medical records of Members, to the extent permitted by law and this Agreement and to review all phases of professional and ancillary medical care provided to Members by Physician. Physician shall permit Federal, state and local government or accrediting agencies, including but not limited to NCQA, and their authorized agents access to all information, records and copies which are pertinent to and involve transactions related to this Agreement if such access is deemed necessary by federal, state and local government or accrediting agencies to comply with applicable accreditation standards, statutes, or regulations. 7

8 4.7 Physician/Patient Relationship. Upon request from Physician to terminate the Physician/Member relationship, APP shall use its best efforts to cause the transfer of the Member to another Participating Health Care Professional within thirty (30) days of request. Physician agrees to set forth in writing the reason for any such request. Physician shall not request removal of any Member in conflict with the requirements of Section 2.6. Removal of a Member from the care of the Participating Primary Care Physician shall be at the sole option of the MCO. APP agrees to facilitate any transfers approved by MCO in a timely fashion and in a manner that ensures patient confidentiality and continuance of appropriate care in a manner consistent with generally accepted medical practice in effect at the time of transfer. In the event an MCO requires different timeframes or documentation standards relating to Member termination or transfer, such MCO specific requirements supersede the requirements of this Section Confidentiality of Protected Health Information. APP and Physician agree to comply with all provisions set forth in Exhibit E, Business Associate Agreement. SECTION V EXTERNAL COMMUNICATIONS 5.1 External Communications. APP or MCO may use Physician s name and other relevant identifying information in the provider directory. As approved by the APP Board of Directors, APP may publicly report performance data, which may include Physician s performance data. The APP Board of Directors reserves the right to review and approve in advance any MCO advertising and promotional material containing Physician s name or other identifying information. Physician may make a written request not to have his or her name included in any MCO or APP advertising or promotional materials other than the provider directory. SECTION VI INSURANCE 6.1 Insurance. Physician shall maintain, in accordance with APP policy and procedure, medical malpractice insurance within the limits of and no less than the amount necessary for Physician s membership on the Medical Staff of Hospital. Physician shall furnish to APP copies of the policy or certificates of insurance within thirty (30) days of the Effective Date of this Agreement. Physician shall give APP at least thirty (30) days advance notice of cancellation, reduction, or change to any such insurance. SECTION VII TERM AND TERMINATION 7.1 Term. This Agreement shall become effective on the Effective Date and shall continue for an initial term of twelve (12) months ( Initial Term ). Unless otherwise terminated in accordance with this Section VII, the Agreement will thereafter be renewed for successive one (1) year terms ( Renewal Terms ). 7.2 Termination for Cause. Any Party may terminate this Agreement at any time upon breach of another party and upon sixty (60) days prior written notice. Such written notice must state the specific breach and shall be effective at the end of such sixty (60) days notice period unless, to the reasonable satisfaction of the non-breaching party, the breach has been cured or substantial progress has been made to cure. The failure of a party to perform, keep, or fulfill any other material covenants, undertakings, obligations, or conditions set forth in this Agreement shall constitute a breach; provided, however, that APP may terminate this Agreement immediately if Physician is no longer eligible for APP or PHO membership in accordance with APP or PHO Policies and Procedures, or otherwise fails to comply with 8

9 APP Quality Management Program requirements. APP Policies and Procedures may provide that Physician has an opportunity to cure a default or is able to continue participation during an appeal of the default and in such cases immediate termination shall not be available to APP. The rights granted hereunder shall not be in substitution of, but shall be in addition to, any and all other rights and remedies for breach of contract available to the non-defaulting party under applicable laws. 7.3 Termination Without Cause. Any Party may give written notice of its intent to terminate or not renew (i) ninety (90) days prior to the expiration of a Renewal Term, or (ii) the date required under any MCO contract, subject, however, to the provisions of this Section VII. Nothing shall prevent termination of this Agreement at any time upon written agreement of the Parties. 7.4 Obligations After Termination. In the event of termination of this Agreement for any reason other than quality of care, Physician will continue to provide Covered Services to Members (i) who are hospitalized at the date of termination, in accordance with state laws and regulations, as applicable, and prevailing standards of the medical profession in effect in the community at the time of treatment, (ii) until the course of treatment of the condition causing hospitalization is completed or under the transitional care requirements, (iii) until medically appropriate arrangements can be made to transfer care to an appropriate Health Care Professional, or (iv) alternative coverage is otherwise obtained. Physician shall continue to accept payment in accordance with this Agreement, as payment in full, for those Covered Services provided to Member in accordance with this Section. As such, all APP policies and procedures and applicable MCO agreement terms, including but not limited to reimbursement and payment terms, shall continue to apply to Physician for all dates of services and time periods prior to the date of termination of this Agreement. Except as otherwise provided in this Section 7.4, upon the termination of this Agreement for any reason, the rights of the Parties shall terminate. SECTION VIII GENERAL PROVISIONS 8.1 Independent Contractors. (a) Except as provided in Section 2.1, this Agreement shall not be construed or deemed to create a relationship of employer and employee or principal and agent or any relationship other than that of independent entities contracting with each other solely for the purpose of carrying out the terms and conditions of this Agreement. Except as provided in Section 2.1, the Parties shall not have any express or implied right of authority to assume or create any obligation or responsibility on behalf of or in the name of the each other or to bind the another Party in any manner. (b) In the performance of provision of the Covered Services required by Physician under this Agreement, it is mutually understood and agreed that the Physician is at all times acting and performing as an independent contractor. Physician hereby represents and warrants to APP, PHO and MCO that Physician, and to the extent applicable, all of Physician s employees, subcontractors, and/or independent contractors who are providing or will provide services under this Agreement, including without limitation health care, utilization review, medical social work and/or administrative services, each maintain full participation status in the Medicare program and/or are not excluded from participation in the Medicare program. Physician further represents and warrants that downstream providers shall, to the extent applicable, be apprised of obligations under this Agreement, and shall agree to provide services in accordance with the terms outlined herein. (c) Nothing in this Agreement shall be construed to, nor shall either PHO or APP as a term or condition of participation or otherwise, restrict the right of any Physician to contract directly with any Payor. The terms of this subsection shall not be deemed to restrict the right of any entity that employs Physician to govern the relationship of such employed Physicians to Payors. 9

10 8.2 Waiver of Default. No failure or delay by a Party in exercising any right, power, or privilege under this Agreement shall operate as a waiver of such right, power, or privilege, nor will any single or partial exercise thereof preclude any other or further exercise therefore the exercise of any further right. 8.3 Entire Understanding. This Agreement and Exhibits which are attached hereto, and any other specifically referenced materials constitute the entire understanding among the Parties with respect to the subject matter hereof. 8.4 Confidentiality. Physician, during the term and subsequent to the termination of this Agreement, shall keep confidential all quality assurance and utilization review information, including, but not limited to, all statistical data, reports, and standards, and all financial information relating to this Agreement, and shall utilize his or her best efforts to prevent and protect such information from unauthorized disclosure by his or her agents and employees. In no event shall Physician utilize or allow his or her agents and employees to utilize any such information to the competitive disadvantage of, or in any other way which is detrimental to APP, PHO or MCO. 8.5 Intellectual Property. (a) Physician acknowledges and agrees that any and all Physician Work Product shall be owned solely and exclusively by APP and, to the maximum extent authorized by law, such Physician Work Product shall be work for hire. To the extent that Physician Work Product is not, as a matter of law, work for hire, Physician hereby assigns and releases to APP all right title and interest Physician may have in and to the Physician Work Product. Physician further agrees to disclose promptly to APP the existence of any Physician Work Product and to execute any and all documents and further assignments, recordings and other instruments that may be necessary to transfer and assign to APP its interest in and to the Physician Work Product and that may be otherwise may be necessary for APP to perfect its interest in such Physician Work Product. (b) Physician Work Product means Works created, made or invented within the scope of this Agreement. (c) Works means (i) designs, software, creative works, processes, inventions, content, confidential information, and other work product, whether created, made or invented solely by Physician or jointly by Physician with other persons or at Physician s direction, and (ii) all intellectual property rights in and to the items listed in (c)(i), including but not limited to, patents, copyrights, trade secrets, trademarks, moral rights, mask works, registrations and applications for any of the foregoing, and any and all other proprietary rights. (d) Works are created, made or invented within the scope of this Agreement if (i) any equipment, supplies, facilities, or trade secret information of PHO or APP was used in such process, (ii) any current APP or PHO employee or contractor is consulted or otherwise used in such process, (iii) the Works are directly related to APP s or PHO s actual or demonstrably anticipated research or development or business strategies or operations, or (iv) the Works result from any work performed by the Physician for APP or PHO or during or while Physician is or is required to be performing services for APP or PHO. 8.6 Severability. In the event any term or provision of this Agreement is rendered invalid or unenforceable, the remainder of the provisions of this Agreement shall remain in full force and effect. 10

11 8.7 Amendments. Except as otherwise provided herein, this Agreement may be amended only by the written agreement of the Parties; provided, however, that amendments may be made by APP or PHO as may be required by an MCO for continued compliance with federal and state laws and regulations applicable to this Agreement. 8.8 Applicable Law. This Agreement shall be governed by, and construed in accordance with, the laws of the State of Illinois, without regard to the conflict of law provisions thereof. 8.9 Assignment. This Agreement may not be assigned, delegated or transferred by any Party, provided, however, that a Party may assign, delegate or transfer this Agreement or any rights or obligations hereunder to another corporation or entity, now or hereafter existing, which corporation or entity is related to a successor of the Party upon prior written notice to the other Parties. If assigned, this Agreement shall inure to the benefit of and be binding upon the Parties and their respective successors and permitted assignees Headings. The headings contained herein are used solely for convenience and shall not be deemed to define or limit the provisions of this Agreement Notice. Except as otherwise provided herein, all notices shall be deemed received on the day personally delivered, or on the second day after mailing, certified or registered, return receipt requested, to the following addresses, or to such other addresses as the parties shall respectively by notice designate. 11

12 PHO: President 1701 W. Golf Road, Suite Rolling Meadows, Illinois APP: President of Advocate Physician Partners 1701 W. Golf Road, Suite Rolling Meadows, Illinois With a copy to: Advocate Health and Hospitals Corporation 3075 Highland Parkway Downers Grove, Illinois Attn: Senior Vice President and General Counsel Physician: IN WITNESS WHEREOF, the parties have duly executed this Agreement on the Effective Date. PHYSICIAN ADVOCATE PHYSICIAN PARTNERS Name Michael Englehart, President Name Signature Date Signature Date PHO Name Signature Date 12

13 EXHIBIT A CMS/NCQA Requirements 1. Covered Services. Physician agrees to provide Covered Services to all Members. 2. Member Data. The Physician shall provide to APP and/or the Managed Care Organization (MCO) all data, including medical records, necessary to characterize the content and purpose of each encounter with a Member. In addition, Physician agrees to submit encounter data to the APP and/or MCO on a monthly basis on or before the last day of each month for Member encounters occurring in the immediately preceding month. The encounter data submission shall include all data elements contained in the CMS 1500 form, the UB 92 form and/or their successor forms. The Physician agrees to certify the completeness and truthfulness of encounter data or other data submitted to APP and/or MCO. 3. Program Compliance. Physician shall comply with and are subject to all applicable Medicare laws and regulations, and other program rules and regulations as implemented and as amended by the Health Care Financing Administration (CMS) or CMS s designee. In addition, Provider shall comply with any additional requirements set forth in agreements between MCO and APP provided that such requirements are made known to the Provider in a timely manner. Furthermore, Physician shall comply with all program rules, regulations and requirements to participate in Medicare Advantage plans as outlined in Exhibit H. 4. Federal Funds. Physician acknowledges and agrees that payment to Provider from APP or MCO for services rendered to Medicare members is derived, in whole or part, from Federal funds received by MCO from CMS. Physician agrees to comply with Federal and State laws, rules and regulations applicable to individuals and entities receiving Federal funds. This includes, without limitation, Title VI of the Civil Rights Acts of 1964, the Age Discrimination Act of 1975, the Americans with Disabilities Act and the Rehabilitation Act of Physician agrees to allow Federal and State agencies and duly authorized MCOs to audit Physician s compliance with such laws. 5. Physician s Agents/Contractors Compliance. Physician hereby represents and warrants to APP and MCO that Physician and, to the extent applicable, all of Physician s employees, subcontractors, and/or independent contractors who are providing or will provide services under the Agreement (downstream providers), including without limitation health care, utilization review, medical social work and/or administrative services, shall each maintain full participation status in the Medicare program and/or are not excluded from participation in the Medicare program. Physician further represents and warrants that downstream providers shall, to the extent applicable, be apprised of obligations under the Agreement, the Addendum and this Amendment, and shall agree to provide services in accordance with the terms outlined therein. 6. Record Retention. In order to ensure compliance under the Agreement and this Amendment, the Physician agrees to retain all contracts, books, documents, papers and other records related to the provision of services to Members and/or related to the Physician's obligations under the Agreement and this Amendment for a period of not less than six (6) years from: (1) each successive December 31; or (2) the end of the contract period between Insurer and CMS; or (3) from the date of completion of any audit, whichever is later. 7. Cooperation. Physician shall cooperate with the activities and/or requests of any independent quality review and improvement organization utilized by and/or under contract with APP or MCO as they may relate to the provision of services to Members. Physician also agrees to comply with APP and MCO s quality assurance programs, medical policy, and medical management program. Physician will adhere to all appeal and expedited appeal procedures established by CMS for Members, including gathering and forwarding information relating to the appeal to MCO or APP as necessary. 13

14 8. Prompt Payment. The Physician shall, if applicable under the terms of the Agreement and/or any other Amendments to the Agreement, comply with all federal and state laws, rules and regulations regarding the timeliness of claims payments to which APP or MCO is subject, including without limitation any timeframes, notice and/or penalties relating to payment provided for by CMS such laws, including any "prompt payment" statute of Illinois. Physician shall process claims for covered services rendered to Members and shall make payments to other providers on a timely basis using APP or MCO normal claims processing policies, procedures, and guidelines and in accordance with applicable federal and state laws, rules, and regulations regarding the timeliness of claims payments. Accordingly, APP will promptly approve or deny completed claims submitted for payment in accordance with an initial determination by APP or an appeal of a denied claim. For purposes of this section, a claim is approved or denied "promptly" if it is approved or denied within the time provided for by any applicable federal or state "prompt payment" statute. 9. Limitation. The terms of this Agreement shall apply only to the participation of the Physician in valid agreements entered into between APP (or PHO) and Medicare+Choice (M+C) MCOs for the provision of health care services to Medicare+Choice (M+C) Members. All other provisions of this Exhibit shall apply to the extent the provisions are consistent with the terms of this Agreement. All terms not otherwise defined in this Exhibit shall have the meaning provided for in the Agreement. 10. Payment and Incentive Arrangements. Physician acknowledges and agrees that payment and incentive arrangements between APP and Physician are set forth in the Agreement or in policy and procedures established by the APP available to provider upon request. Upon written request, Physician agrees to disclose to APP or MCO, as applicable, within a reasonable time period not to exceed thirty (30) days from such request, or such lesser period of time as required for APP or MCO to comply with all applicable state and federal laws, rules and regulations, the terms and conditions of any payment arrangement that constitute a physician incentive plan as defined by CMS or any state or federal law, between APP and Physician or Physician and Physician s downstream providers. Such disclosure shall be in the form of a certification, or other form as required by CMS, APP or MCO and shall identify, at a minimum: (a) whether services not furnished Physician are included in the incentive plan; (b) the type of incentive plan, including the amount, identified as a percentage, or any withhold or bonus; (c) the amount and type of any stop-loss coverage provided for or required of the Physician; and (d) the Physician s patient panel size, broken down by total panel for Physician and individual downstream providers, by the type of Member insurance coverage (i.e., Commercial HMO, Medicare HMO, and Medicaid HMO). 11. Participation Decisions. APP or MCO, as applicable, shall provide Physician timely notice in writing of reasons for denial, suspension and termination determinations that affect Physician s participation in the APP. Neither Physician nor MCO or APP shall terminate the Agreement without cause upon less than 60 days prior written notice. Upon termination of the Agreement, Physician shall provide Covered Services to any Medicare Members receiving Covered Services on the date of termination until the date of discharge or until arrangements for substitute care may be made. 14

15 EXHIBIT B Additional MCO Requirements Content Statement of the HMO Illinois Medical Service Agreement: Provider agrees to abide by the following terms as applicable for Members of HMO Illinois, which are conditions set forth in the current HMO Illinois Medical Service Agreement with PHO: 1. Compensation. Physician agrees to seek compensation not from HMO Illinois or Member of HMO Illinois but solely from PHO for services provided to Members of HMO Illinois assigned to PHO. 2. Quality Review Activities. Physician agrees to participate in quality of care review activities as requested by the PHO for Members of HMO Illinois, including allowing access to medical records for HEDIS reporting and other HMO Illinois quality improvement initiatives. 3. Confidentiality. Physician agrees to preserve patient confidentiality. 4. Reimbursement Reciprocity. Physician agrees not to charge any provider that has a contractual or other affiliation with another Participating IPA more than the BlueCross BlueShield of Illinois PPO Schedule of Maximum Allowances for referred or Emergency Services provided to HMO Illinois Members of such Participating IPA if such bills are paid within 30 days of the Participating IPA s receipt of such bills. For the purpose of this Exhibit to the Agreement, Participating IPA means any duly organized individual practice association, organized medical group, physician hospital organization or other legal entity organized to provide or to arrange for the provision of professional medical services, which has in force a contract or agreement with HMO Illinois to provide professional and ancillary services to Members of HMO Illinois according to a plan of benefits. 5. Insurance. In accordance with Section VII of this Agreement, physician shall maintain medical malpractice insurance within the limits of and no less than the amount necessary for Physician s membership on the Medical Staff of Hospital as of the date of this Agreement. Currently, those limits are amounts not less than $1,000,000 per claim and $3,000,000 annual aggregate coverage. 15

16 EXHIBIT C 2013 PARTICIPATION CRITERIA AdvocateCare Program Participation Requirements: - Complete APP on-line orientation within 90 days of joining Advocate Physician Partners ( APP ). - Participate in the APP Clinical Integration programs, as evidenced by meeting various CI thresholds. - Attend in person CI I Physician Roundtable session each year or complete on-line program. - Physician Office Manager/Staff attend at least one APP Office Manager Meeting per year. - Participate in all AdvocateCare initiatives, including actively engage in the services of AdvocateCare care managers. - Agree to Level 3 or higher eicu participation, where eicu is available. - Cooperate with providing PPO claim information to APP under the methodology determined. - Include all patients in the physician s practice, regardless of the source of payment, that meet selection qualifications for the APP CI initiatives and program. - Physician must attain a minimum year-end CI Score. For Sherman, this is deferred until 2015 CI measurement year. - Demonstrate participation in APP Board approved programs designed to improve performance. - Complete the APP Online HIPAA privacy and business conduct online training each calendar year. For Sherman, this is deferred until Comply with Advocate Health Care policy on annual flu vaccination. For Sherman, this is deferred until Threshold HMO Full/Partial Risk Members Required Before Closing Panel (For Primary Care Physicians Only): Before requesting closure of HMO patient panel: Internal Medicine physicians are required to maintain a commercial and Medicare HMO panel size (per physician FTE) of 300 under age 65 equivalent HMO patients. Pediatrics and Family Practice physicians are required to maintain a commercial and Medicare HMO panel size (per physician FTE) of 400 under age 65 equivalent HMO patients. A patient over the age of 65 is considered equivalent to 3 under age 65 equivalent patients for purposes of this policy. Access and Availability Requirements: - Physician and office must meet access requirements established for the AdvocateCare Program. Standards are set forth in the APP Provider Manual and APP policies. - Physician must apply for membership of each PHO where he or she is a member of the Medical Staff. - Physician must provide coverage, if unavailable, by another APP member physician of the same specialty. For Sherman, this begins January 1, Electronic Data Interchange & Internet Connectivity Requirements: - Physician connectivity with APP operations for the purpose of facilitating electronic exchange of information, including hardware and software compatibility. - Physician must have an Advocate One Account for Internet access and office usage: - Physician must have Care Net or Care Connection access in their office. - High-speed Internet access is the required type of connection in the physician s office. 16

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