PRICE
ARA has accepted this for a management contract fee of $52,000
per year and costs. The costs (including the management fee) are
constrained to the established budget for the year. As an incentive
to improve efficiencies and performance, a bonus plan is included.
Should ARA come in under the budget, the savings will be shared 10%
for ARA and 90% for the Hospital. Should they be able to increase
volume in the cafeteria, the increase would also be shared in like
manner.
Because of technicalities of maximizing the benefits of ARA
purchasing outside the State purchasing constraints and to not have
ARA considered as "agents" of the Hospital, the total dollar volume
of the contract may be as much as $3,000,000/year, related to patient
volume. However, the specific value to ARA will be considerably
less, more in the range of $150,000, related to the management fee
and the bonuses from increased volumes and savings.
