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PRICE
 


0002

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.