The First Offer
Holding Your Ground
The hospital administrator pushed a note typed on official hospital letterhead across the table saying, “Here is our letter of intent to ‘term’ our agreement. If we don’t get what we want, we will let the contract expire and you will be SOL. We don’t have to do business with you. You need us more than we need you.”
(A term letter is the formal document a hospital uses to communicate to the medical insurance company that the hospital will allow the current contract to expire or term-inate at the end of its contract period. When and if a hospital contract is allowed to “term,” the members (patients) must be notified that they will need to make arrangements with other doctors ...