decorahnews.com exclusive: Here's what's in the Management Services Agreement contract between Winneshiek Medical Center and Mayo Clinic Health Systems--Franciscan Medical Center

Winneshiek Medical Center will make available to the public copies of the Management Services Agreement that spells out the contract the hospital has with Mayo Clinic Health Systems for managing the hospital.

decorahnews.com has requested--and has been given--a copy of the contract.

There are several interesting clauses in the contract.

First of all, the contract spells out that the responsibility for running the hospital rests with the WMC Board of Trustees.  "This agreement is not intended to create, and shall not be construed as creating, the relationship of partners...between WMC and (Mayo)," the contract says.

The contract gives Mayo Clinic Health Systems--Franciscan Medical Center the exclusive right to hire managers for the hospital.  But, interestingly, the contract specifically mentions only two managers--the Chief Administrative Officer and the Chief Medical Officer.  It does NOT mention the Chief Operating Officer, Chief Financial Officer nor the Chief Nursing Officer, although it does say "(Mayo) shall also provide the services of such other managers that WMC, acting through its Board of Trustees, and MC-FMC reasonably determine to be necessary to conduct the day-to-day management of WMC."

The contract also specifies that WMC shall participate in Mayo's Group Purchasing Program.  It also sets a 2012 annual base fee of $150,000 for Mayo's consultative services.

The new Management Services Agreement runs from July 1st, 2012 through June 30th, 2015.  But the contract AUTOMATICALLY renews at five years increments unless a non-renewal notice is sent by either party at least one year before the term of the contract ends.  That means if the WMC Board would decide to drop Mayo as its management services provider, it would have to notify Mayo before June 30th, 2014.