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Physicians Specialty Corp – IPO: ‘S-1’ on 11/29/96 – EX-10.17

As of:  Friday, 11/29/96   ·   Accession #:  950123-96-7064   ·   File #:  333-17091

Previous ‘S-1’:  None   ·   Next:  ‘S-1/A’ on 2/20/97   ·   Latest:  ‘S-1/A’ on 5/11/98

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  As Of                Filer                Filing    For·On·As Docs:Size              Issuer               Agent

11/29/96  Physicians Specialty Corp         S-1                   25:1.2M                                   RR Donnelley/FA

Initial Public Offering (IPO):  Registration Statement (General Form)   —   Form S-1
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: S-1         Form S-1 / Physicians' Specialty Corp.               105    568K 
 2: EX-3.1      Certificate of Incorporation of the Registrant         9     25K 
 3: EX-3.2      Amended and Restated By-Laws of the Registrant        16     59K 
 4: EX-10.1     Asset Acquisition Agreement of Nov. 26, 1996          41    147K 
13: EX-10.10    Lease Agreement                                       24     83K 
14: EX-10.11    Lease Agreement                                       55    142K 
15: EX-10.12    Lease Agreement                                       35±   134K 
16: EX-10.13    1996 Stock Option Plan                                12     56K 
17: EX-10.14    1996 Health Care Professionals Stock Option Plan       9     41K 
18: EX-10.15    Indemnification Agreement                             10     42K 
19: EX-10.16    Group Practice Managed Care Agreement                 30     95K 
20: EX-10.17    Physician Network Participation Agreement             26     76K 
21: EX-10.18    Agreement Dated June 1, 1995                          15     48K 
22: EX-10.19    Non-Negotiable Promissory Note                         3     16K 
 5: EX-10.2     Acquisition Agreement of Nov. 26, 1996                30    101K 
23: EX-10.20    Non-Negotiable Promissory Note                         3     16K 
 6: EX-10.3     Employment Agreement Re Ramie A. Tritt, M.D.          13     50K 
 7: EX-10.4     Employment Agreement Re Richard D. Ballard            12     44K 
 8: EX-10.5     Employment Agreement Re Gerald R. Benjamin            12     46K 
 9: EX-10.6     Management Services Agreement                         36    127K 
10: EX-10.7     Asset Purchase Agreement                               8     25K 
11: EX-10.8     Registration Rights Agreement                          6     27K 
12: EX-10.9     Promissory Note                                        2     12K 
24: EX-21.1     Subsidiaries of the Registrant                         1      7K 
25: EX-27.1     Financial Data Schedule                                1     11K 


EX-10.17   —   Physician Network Participation Agreement
Exhibit Table of Contents

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11st Page   -   Filing Submission
"Hmo
"Physician Network
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EXHIBIT 10.17 Portions of this Exhibit have been omitted pursuant to a request for confidential treatment. The omitted portions, marked by an * and [ ], have been separately filed with the Commission. HMO Physician Network Form Code: GRPXXY050892 PHYSICIAN NETWORK PARTICIPATION AGREEMENT This Agreement is effective as of July 1, 1994 and is entered into between Atlanta-AHP, Inc. ("Physician Network") and Aetna Health Management, Inc. ("AHM"). Upon acceptance of sufficient application from Physician Network's member physicians, Physician Network may participate in various Aetna health benefits products in accordance with the terms and conditions stated below. I. DEFINITIONS 1.1 MEMBER means a person eligible to receive benefits under a Plan. 1.2 COVERED SERVICES are those services for which benefits may be provided under the terms of a Plan. 1.3 CAPITATED SERVICES means services listed in Attachment A-1 that are also Covered Services. 1.4 Network PHYSICIAN means a member of Physician Network whose application has been accepted by AHM. 1.5 NON-CAPITATED SERVICES means services in Attachment A-2 that are also Covered Services. 1.6 PARTICIPATING PROVIDER means a facility, physician or other health care provider under agreement to participate in a provider Network administered by AHM or its affiliates. This term does not include members of Physician Network whose applications have not been accepted by AHM. 1.7 PAYOR means an entity liable for funding of benefit payments under a Plan which uses a provider Network administered by AHM or its affiliates. A Payor may be a health maintenance organization ("HMO"), insurer, employer or other entity, depending on the Plan. A Payor's liability for funding benefit payments is governed by the terms of its Plan. AHM will inform Physician Network of the Payor liable for benefit payments under a specific Plan on request. AHM is not a Payor.
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1.8 PCP FEATURE means that in order to obtain maximum benefits under a Plan, the Member chooses a personal physician, known as a "Primary Care Physician," or "PCP," and is required to contact the PCP to arrange for non-emergency services in order to receive maximum benefits. 1.9 PLAN means a health benefits plan which encourages or requires Members to use a Participating Provider in order to receive maximum benefits. II. PHYSICIAN NETWORK'S AGREEMENTS AND OBLIGATIONS General 2.1 Physician Network agrees to provide those Covered Services to Members without discriminating against Members on the basis of source of payment, race, color, religion, national origin, health status or disability. 2.2 Physician Network consents to references to the status of Physician Network and of Network Physicians as a Participating Provider in marketing and other materials. 2.3 Physician Network will maintain medical, financial and administrative records concerning services provided to Members and will keep these records for at least five years from the date the service was rendered. Physician Network agrees that AHM or Payors, their authorized representatives, and duly authorized third parties such as government or regulatory agencies, will have the right to inspect, review and receive copies of records directly related to services rendered to Members, upon reasonable notice, during regular business hours. Physician Network will provide, upon request, a copy of Member operative reports free of charge and agrees to accept payment for copies of other records at the rate of $1 per page. Physician Network further agrees to obtain any necessary releases from Members with respect to their records and the information contained therein. 2.4 Physician Network agrees not to delegate Physician Network's duties under this Agreement without prior written consent of AHM. This paragraph does not prohibit the expected performance of Physician Network obligations by Network Physicians. 2.5 Physician Network agrees to make referrals to and arrange back-up coverage, with Participating Providers unless medically inappropriate. Physician Network agrees to obtain pre-certification from Member's Primary Care Physician for any referrals to physicians outside the Physician Network. 2.6 Physician Network agrees to participate in the Utilization Management program ("UM programs") and Quality Management program ("QM program") applicable to each Plan, including initiating utilization review. For Plans with a PCP Feature, Physician Network agrees to follow the referral management program. Failure to comply with the applicable UM/QM programs may result in reductions in payment or in termination of this Agreement. -2-
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2.7 Physician Network agrees to comply with and participate in any applicable appeal/grievance procedure, including any applicable Member grievance system. 2.8 For Plans with a PCP Feature, upon Network Physician's election and AHM's approval, individual Network Physicians shall be designated either a Primary Care Physician or a Specialist Physician. Specialist Physician agrees to inform referring Primary Care Physician of findings and/or treatment plan orally or in writing. Billing and Compensation 2.9 Physician Network agrees to accept the amounts provided for in Attachments A, A-1, A-2 and A-3 as payment in full for Covered Services. Physician Network agrees that if Physician Network reduces the amount Physician Network will accept as payment in full for Non-Capitated Services, e.g. through forgiveness of coinsurance, copayments or deductibles, Physician Network will bill Payor at the reduced amount and will accept payment from Payor based on the reduced amount. 2.10 If Physician Network's failure to participate in the UM/QM programs, or if Physician Network's failure to submit a timely claim, results in a denial or reduction of payment from Payor, Physician Network agrees not to charge Members for the resulting unpaid charges. Physician Network agrees not to charge Members for services which UM review indicates may not be covered unless a) the Member has been informed prior to receiving the services that the services may not be covered under Payor's Plan and b) the Member has agreed in writing to pay for the services. Except or the preceding two sentences, nothing in this Agreement is intended to restrict Physician Network's right to charge Members for non-covered services. 2.l1 Physician Network agrees to file claims on behalf of Members for Non-capitated Services. Physician Network also agrees to obtain assignment of benefits for such claims when appropriate. 2.12 Physician Network agrees to submit an itemized claim for Non-capitated Services using the HCFA-1500 billing form (or a billing form containing equivalent information) within 90 days from the date of service, or, in those instances in which the Payor is secondary, 90 days from the date that notice of payment decision is received from the primary payor. Payors will not be obligated to pay claims which are submitted after that time. 2.13 Physician Network agrees to cooperate in claims payment administration including, but not limited to, coordination of benefits, subrogation, checking coverage, prior certification and record keeping procedures. For Non-capitated Services, if Payor pays Physician Network more than is provided for in Payor's Plan, or if Payor pays Physician Network on the basis of an assignment of benefits which is successfully contested, Physician Network agrees to return such amounts to Payor or to Payor's agent. -3-
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2.14 If Payor is a HMO, Physician Network agrees that in no event, including but not limited to non-payment by the HMO, HMO insolvency or breach by AHM of this Agreement, shall Physician Network bill, charge, collect a deposit from, seek compensation, remuneration or reimbursement from, or have any recourse against HMO's Members for Covered Services. This provision does not prohibit collection of supplemental charges or copayments on HMO's behalf made in accordance with HMO's Plan. Physician Network further agrees that this paragraph shall be construed to be for the benefit of HMO's Members and that this paragraph supersedes any oral or written contrary agreement now existing or hereafter entered into between Physician Network and HMO's Members or persons acting on such Members' behalf. Credentialing 2.15 Physician Network agrees to provide the information required under AHM's credentialing and quality management programs ("C/QM programs"); Physician Network agrees that Physician Network's participation and the participation of individual Network Physicians under this Agreement may be terminated or suspended pursuant to these programs. Physician Network represents and warrants that the information provided in accordance with the C/QM programs, including but not limited to the information provided in each Network Physician's application, continues to be true and complete. Physician Network agrees to notify AHM immediately of changes in that information. 2.16 Physician Network and each Network Physician shall maintain comprehensive general and professional liability insurance in adequate amounts ("adequate" as determined by AHM), shall provide documentary evidence of such coverage to AHM upon request, and shall notify AHM immediately of any change in coverage. 2.17 Physician Network represents and warrants that Physician Network has and will maintain all licenses necessary to provide the services contemplated under this Agreement. Physician Network shall notify AHM immediately of any action to suspend, revoke or restrict its license(s) and/or any other accreditation or certification that is necessary or useful for providing the services contemplated by this Agreement. Network Terms 2.18 Physician Network represents and warrants that it is in good standing under applicable laws and regulations governing its existence and operation, that this Agreement has been executed by its duly authorized representative, and that Physician Network has the authority to bind Network Physicians to the terms of this Agreement. 2.19 Physician Network agrees that an application will be submitted to AHM for every physician who is presently a member of Physician Network or who becomes a member of Physician Network during the term of this Agreement. Physician Network agrees to notify AHM immediately if any Network Physicians cease to be members of Physician Network. -4-
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III. AHM AGREEMENTS AND OBLIGATIONS 3.1 AHM agrees to provide descriptions of Aetna health benefits products to Physician Network. 3.2 AHM shall arrange for the distribution of identification cards to Members; each card will include a toll-free number that Physician Network may use during normal business hours to check eligibility for coverage and to obtain general coverage information. 3.3 AHM agrees to inform Physician Network of the UM/QM procedures and the billing procedures for each Plan. 3.4 AHM shall implement a means for Physician Network to identify other Participating Providers. 3.5 AHM will instruct Payor to pay its portion of Physician Network's bills for Non- capitated Services, within 30 days of receipt, or such shorter period as required by law, when such bills are accurate, complete, in the agreed-upon form, when Payor is primary and when the bills do not require any further investigation. IV. TERM AND TERMINATION 4.1 Term. This Agreement shall continue in effect until terminated. 4.2 Termination. This Agreement may be terminated: a) without cause by either party upon 90 days prior written notice to the other. b) for material breach if 30 days prior written notice specifying the material breach has been given to the breaching party and if at the end of the thirty days the dispute remains unresolved. This Agreement may then be terminated immediately by written notice to the breaching party. c) upon notice by AHM pursuant to AHM's C/QM programs. d) upon notice by AHM if insufficient numbers of Physician Network's members are Network Physicians. 4.3 Obligations Following Termination. Physician Network shall continue to provide Covered Services to Members receiving active treatment at the time of termination until the course of treatment is completed or until ARM makes reasonable and medically appropriate arrangements to have another physician provide the services. The terms of this Agreement continue to apply after termination to such Covered Services and to Covered Services provided -5-
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before termination. Physician Network agrees to inform Members seeking medical care after the date of termination that Physician Network is no longer a Participating Provider. V. MUTUAL OBLIGATIONS 5.1 Amendments. This Agreement may be amended by AHM upon written notice to Physician Network if necessary in order to comply with applicable law. It may also be amended by AHM upon 30 days prior written notice to Physician Network, unless Physician Network objects to the proposed amendment in writing within 15 days of the date the notice of amendment was sent. 5.2 Independent Contractors. Physician Network, AHM and Payors are independent contractors and are not responsible for the acts or omissions of each other. Physician Network and Network Physicians continue to be solely responsible for treatment decisions; claim determinations and determinations made in connection with utilization review in no way affect the responsibility of Physician Network and Network Physicians to provide or arrange for appropriate services for Members. 5.3 Dispute Resolution. If a dispute should arise with respect to the terms of this Agreement, the parties agree to attempt to resolve the matter through informal discussion, or, if informal discussion does not resolve the matter, through mediation. Where pursuing mediation, the parties shall attempt to take no longer than 30 days to agree upon a mediator. 5.4 Notice. Any written notice required by this Agreement shall be sent by certified mail, return receipt requested, to the address given below or to such later address as may be specified in writing. Any prior written notice periods required by this Agreement shall be deemed to start on the day that written notice was sent. Attn: Ramie A. Tritt, M.D. Aetna Health Management. Inc. Atlanta-AHP, Inc. Contracts Administration 5555 Peachtree-Dunwoody Road 1000 Middle Street MC2S Suite 201 Middletown, CT 06457 Atlanta, GA 30342 and Attn: Howard E. Fagin, Ph.D. 990 Hammond Drive, Suite 980 Atlanta, GA 30320 5.5 Trademarks. Neither party may use the other party's trademarks or servicemarks without the express written consent of the other party. Neither party may use any trademark or servicemark of any Payor without the express written consent of that Payor. -6-
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5.6 Waiver of Breach. The waiver of any breach of this Agreement will not be deemed to waive any other breach. 5.7 Entire Agreement. This Agreement, including its attachments, constitutes the entire agreement between the parties with respect to the matters addressed herein and supersedes all prior oral and written understandings between the parties. ATLANTA-AHP, INC. AETNA HEALTH MANAGEMENT, INC. By:____________________________ By:__________________________________ Printed Name:__________________ Printed Name:________________________ Title: ________________________ Title:_______________________________ Date:__________________________ Date:________________________________ Tax I.D.: _____________________ -7-
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The information below marked by * and [ ] has been omitted pursuant to a request for confidential treatment. The omitted portion has been separately filed with the Commission. PHYSICIAN NETWORK PARTICIPATION AGREEMENT Attachment A Compensation Schedule Full Capitation, Risk Share I. Reimbursement Rate A. For in-area HMO Members, Physician Network's reimbursement for Capitated Services shall be based on [*] per Member per month for the initial year of the contract. Total Physician Network's reimbursement is subject to the risk share arrangement and implementation clause described in Section IV and V, respectively. The reimbursement rate is subject to renegotiation annually and shall be negotiated on or about 30 days prior to, and effective on, the contract anniversary date. Physician Network shall be responsible for providing all Capitated Services. Physician Network shall provide these services directly or arrange for the provision of any necessary services required by Members. If physicians other than Network Physicians are used to provide such services, Physician Network shall be responsible for making payments directly to such providers. B. For Non-capitated Services provided to Members Physician Network's Reimbursement Rate shall be the lesser of: 1. The maximum fee for the particular Covered Service as determined by HMO, or 2. Physician Network's usual and customary charge for such service. Physician Network shall provide HMO with data on a quarterly basis relating to payments made for Physician Network Covered Services. Physician Network shall also provide HMO with summary data on magnetic tape, floppy disk, or hard copy in a format acceptable to HMO within 45 days after the end of the quarter. This format, at a minimum, shall include: (1) Member name, (2) Member I.D. number, (3) date of service, (4) CPT Code/ICD-9 code, (5) billed amount/paid amount, (6) Member's Primary Care Physician, (7) provider rendering service if other than Primary Care Physician and (8) coordination of benefits and third party recoveries information. Physician Network shall provide HMO a quarterly balance sheet, income statement and year-to-date income statement on a timely basis. Within 120 days of the end of each Physician -8-
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Network fiscal year, Physician Network shall provide HMO a current financial statement or audited financial statement if available. Physician Network shall permit HMO to perform a financial audit of Physician Network's financial records, at HMO's expense, upon 30 days written notice by HMO. II. Compensation: Payor A. For Capitated services, the compensation payable by Payor to Physician Network shall be equal to the Capitation Rate described above, subject to the terms of this Agreement and the applicable Plan. B. For Non-capitated Services, the compensation per claim payable by Payor to Physician Network, subject to the terms of this Agreement and the applicable Plan, shall be equal to: 1. The Reimbursement Rate, 2. Minus any applicable copayments, coinsurance and/or deductibles. C. Capitation payments will be paid to Physician Network by Payor on or before the 10th day of each month. D. For the purposes of calculating Capitation payments due under this Attachment, the number of Members will be determined as of the first day of the month. No payment adjustments will be made for Members entering or leaving the applicable health benefits plan after the first day of the month. All Capitation payments shall be subject, for a period not to exceed three months, to subsequent adjustment as required to reflect delayed enrollment information received by HMO from HMO's contractholders. III. Compensation: Member Physician Network agrees that Physician Network will not bill Members for amounts in excess of the deductibles, copayments and/or co-insurance provided for in Member's Plan. IV. Risk Share Arrangement Except for the first year arrangement described in V. below, the Capitation payments made under this Agreement are subject to adjustment on an annual basis, as determined by the following reconciliation process: Within 60 days of the anniversary date of this contract, Physician Network shall provide HMO a reconciliation showing the following amounts: -9-
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1. Total capitation payments paid to Physician Network by HMO for the preceding contract year plus applicable copayments, COB recoveries and other third party recoveries related to HMO Members. 2. Total Capitated Services provided during the preceding contract year multiplied by the HMO fee schedule in effect as of the first day of the preceding contract year. If the amount described in number one above is greater than the amount in number two, Physician Network shall reimburse HMO 100 percent of the surplus. If the amount in number one above is less than 60 percent of the amount in number two, HMO shall pay Physician Network the difference. Any risk share payments shall be paid within 30 days after the reconciliation. The reconciliation shall be provided by Physician Network to HMO on magnetic tape, floppy disk or hard copy in a format acceptable to HMO. All supporting detail information shall be included in the reconciliation. V. First Year Risk Share Arrangement During the first year after the contract effective date, the Capitation payments made under this Agreement are subject to adjustment, as determined by the following reconciliation process: A. Within 180 days of the contract effective date, Physician Network shall provide HMO a reconciliation showing the following amounts: 1. Total capitation payments paid to Physician Network by HMO for the first two months of this contract plus applicable copayments, COB recoveries and other third party recoveries related to HMO Members. 2. Total Capitated Services provided during the first two months of this contract multiplied by the HMO fee schedule in effect as of the first day of this contract (Attachment A-3). If the amount described in number one above is greater than 80 percent of the amount in number two, Physician Network shall reimburse HMO 100 percent of the surplus. If the amount in number one is less than 60 percent of the amount in number two, HMO shall pay Physician Network the difference. Any risk share payments shall be paid within 30 days after the reconciliation. The reconciliation shall be provided by Physician Network to HMO on magnetic tape, floppy disk or hard copy in a format acceptable to HMO. All supporting detail information shall be included in the reconciliation. -10-
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B. Within 60 days of the first anniversary date of this contract, Physician Network shall provide HMO a reconciliation showing the following amounts: 1. Total capitation payments paid to Physician Network by HMO for the last ten months of the first year of this contract plus applicable copayments, COB recoveries and other third party recoveries related to HMO Members. 2. Total Capitated Services provided during the last ten months of the first year of this contract multiplied by the HMO fee schedule in effect as of the first day of this contract. If the amount described in number one above is greater than the amount in number two, Physician Network shall reimburse HMO 100 percent of the surplus. If the amount in number one above is less than 60 percent of the amount in number two, HMO shall pay Physician Network the difference. Any risk share payments shall be paid within 30 days after the reconciliation. The reconciliation shall be provided by Physician Network to HMO on magnetic tape, floppy disk or hard copy in a format acceptable to HMO. All supporting detail information shall be included in the reconciliation. -11-
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Attachment A-1 Capitated Services I. Capitated Services shall include the following services unless specifically excluded on Attachment A-2: 1. All professional services that are typically performed by otolaryngologists in the Atlanta market. This includes services, procedures, surgeries, etc. performed in hospitals, surgical centers, offices, or other locations; and 2. Laboratory and radiology services normally rendered in the office of Network Physicians. -12-
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PHYSICIAN NETWORK PARTICIPATION AGREEMENT Attachment A-2 Compensation Schedule Non-Capitated Services I.CPT PROCEDURE CODES IMPLANTS -------- 69710 IMPLANTATION/REPLACEMENT OF ELECTROMAGNETIC BONE CONDUCTION HEARING DEVICE IN TEMPORAL BONE 69711 REMOVAL/REPAIR OF ELECTROMAGNETIC BONE CONDUCTING HEARING DEVICE IN TEMPORAL BONE 69930 COCHLEAR DEVICE IMPLANTATION GRAFTS 15570 DERMA FAT FASCIA 21235 EAR CARTILAGE GRAFT TO EAR 20926 TISSUE GRAFT 15100 SPLIT GRAFT 69320 RECONSTRUCTION EXTERNAL AUDITORY CANAL 61526 CRANIECTOMY 69725 DECOMPRESSION FACIAL NERVE/INCLUDING MEDIAL TO GENICULATE GANGLION 69720 DECOMPRESSION FACIAL NERVE 95937 NEUROMUSCULAR JUNCTION TESTING 63707 REPAIR OF DURAL/CSF LEAK 69310 MEATOPLASTY 42425 EXCISION OF PAROTID TUMOR 60252-60254 THYROIDECTOMIES 60220-25-45-56 THYROIDECTOMIES 60260 THYROIDECTOMIES 60240-46-70 THYROIDECTOMIES 60254 THYROIDECTOMIES 31365 RADICAL NECK 31390 PHARYNGOLARYNGECTOMY, W/RADIAL NECK DISSECTION, W/ RECONSTR. 31395 PHARYNGOLARYNGECTOMY, W/RADIAL NECK DISSECTION, W/O RECONSTR. -13-
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92559 VORTEQ (UNLISTED PROCEDURE) 31360 LARYNGECTOMY/TOTAL WITHOUT NECK DISSECTION 31365 LARYNGECTOMY/TOTAL WITH RADICAL NECK 31367 SUBTOTAL SUPRAGLOTTIC WITH RADICAL NECK 31368 SUBTOTAL SUPRAGLOTTIC WITHOUT RADICAL NECK SKULL BASE ---------- 61518-61521 CRANIECTOMY 61526 CRANIECTOMY, BONE FLAP CRANIOTOMY 61530 COMBINED WITH MIDDLE/POSTERIOR FOSSA 61590 61591 61595-61598 61600-61613 61615-61619 62100 62120 62121 62140 II. OTHER PROCEDURES LAB AND RADIOLOGY SERVICE THAT ARE NOT TYPICALLY PERFORMED IN THE OFFICE OF NETWORK PHYSICIANS HOME HEALTH SERVICES III. OTHER FACILITY FEES FOR SURGERY, EMERGENCY ROOM AND HOSPITAL STAYS HEARING AIDS DME ITEMS EMERGENCY ROOM CLAIMS ALL OUT-OF-AREA CLAIMS -14-
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The information below marked by * and [ ] has been omitted pursuant to a request for confidential treatment. The omitted portion has been separately filed with the Commission. PHYSICIAN NETWORK PARTICIPATION AGREEMENT Attachment A-3 HMO Fee Schedule CODE CPT NAME FEE ---- -------- --- 11100 BIOPSY OF LESION [*] 11440 REMOVAL OF SKIN LESION 11441 REMOVAL OF SKIN LESION 11442 REMOVAL OF SKIN LESION 11443 REMOVAL OF SKIN LESION 11446 REMOVAL OF SKIN LESION 11620 REMOVAL OF SKIN LESION 11642 REMOVAL OF SKIN LESION 20000 * INCISION OF ABCESS 20670 * REMOVAL OF SUPPORT IMPLANT 21235 EAR CARTILAGE GRAFT 21255 RECONST. ZYGOMATIC ARCH & GLENOID 21320 TREATMENT OF NOSE FRACTURE 21330 REPAIR OF NOSE FRACTURE 21365 REPAIR CHEEK BONE FRACTURE 21557 RADICAL RESCONS. TUMOR NECK 21557A RADICAL RECONS. TUMOR NECK ASSI 26445A AST SURG/RELEASE HAND/FINGER 30100 INTRANASAL BIOPSY 30110 REMOVAL OF NOSE POLYP(S) 30115 REMOVAL OF NOSE POLYP(S) 30117 REMOVAL OF INTRANASAL LESION 30130 REMOVAL OF TURBINATE BONES 30140 REMOVAL OF TURBINATE BONES 30200 * INJECTION TREATMENT OF NOSE 30420 RECONSTRUCTION OF NOSE 30520 REPAIR OF NASAL SEPTUM 30620 RECONSTRUCTION INNER NOSE 30630 REPAIR NASAL SEPTUM DEFECT 30801 CAUTER/ABLAT MUCOSA OF TURBINA 30802 CAUTER/ABLAT MUCOSA OF TURBINA 30901 * CONTROL OF NOSE BLEED 30903 * CONTROL OF NOSE BLEED -15-
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The information below marked by * and [ ] has been omitted pursuant to a request for confidential treatment. The omitted portion has been separately filed with the Commission. PHYSICIAN NETWORK PARTICIPATION AGREEMENT Attachment A-3 HMO Fee Schedule CODE CPT NAME FEE ---- -------- --- 30930 THERAPY FRACTURE OF NOSE [*] 31000 * IRRIGATION MAXILLARY SINUS 31020 EXPLORATION MAXILLARY SINUS 31070 EXPLORATION OF FRONTAL SINUS 31090 EXPLORATION OF SINUSES 31250 DIAGNOSTIC NASAL ENDOSCOPY 31252 NASAL ENDOSCOPY W/POLYPECTOMY 31254 NASAL ENDOSCOPY W/ETHMOIDECTOM 31255 NASAL ENDOSCOPY W/ETHMOIDECT 31256 NASAL ENDOSCOPY W/MAX. ANTROSTO 31267 MAXILLARY SINUS ENDOSCOPY, W/ 31275 SPHENOID ENDOSCOPY-SURGICAL 31285 SINUS ENDOSCOPY; TWO OR MORE 31505 DIAGNOSTIC LARYNGOSCOPY 31525 DIAGNOSTIC LARYNGOSCOPY 31526 DIAGNOSTIC LARYNGOSCOPY 31535 OPERATIVE LARYNGOSCOPY 31536 OPERATIVE LARYNGOSCOPY 31541 OPERATIVE LARYNGOSCOPY 31570 LARYNGOSCOPY WITH INJECTION 31575 FIBERSCOPIC LARYNGOSCOPY 31579 LARYNGOSCOPY W/STROBOSCOPY 31600 INCISION OF WINDPIPE 31622 BRONSCHOSCOPY W/OUT CELL WASH 31625 BRONCHOSCOPY WITH BIOPSY 31750 REPAIR OF WINDPIPE 33511A ASST SURG/CORONARY ARTERIES BY 36415 * VENIPUNCTURE 38500 BIOPSY/REMOVAL OF LYMPH NODE 38720 REMOVAL OF LYMPH NODES,NECK 40490 BIOPSY OF LIP -16-
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The information below marked by * and [ ] has been omitted pursuant to a request for confidential treatment. The omitted portion has been separately filed with the Commission. PHYSICIAN NETWORK PARTICIPATION AGREEMENT Attachment A-3 HMO Fee Schedule CODE CPT NAME FEE ---- -------- --- 40806 INCISION OF LIP FOND [*] 40808 BIOPSY OF MOUTH LESION 40810 EXCISION OF MOUTH LESION 40812 EXCISE/REPAIR MOUTH LESION 40819 EXCISE LIP OR CHEEK FOLD 41010 EXCISION OF TONGUE LESION 41105 BIOPSY OF TONGUE 41110 EXCISION OF TONGUE LESION 41113 EXCISION OF TONGUE LESION 41115 EXCISION OF TONGUE FOLD 41140 REMOVAL OF TONGUE 42145 PALATOPHAYNGOPLASTY 42310 * DRAINAGE OF SALIVARY GLAND 42326 CREATE SALIVARY CYST DRAIN 42400 * BIOPSY OF SALIVARY GLAND 42405 BIOPSY OF SALIVARY GLAND 42415 EXCISE PAROTID GLAND/LESION 42420 EXCISE PAROTID GLAND/LESION 42420A ASST SURG/EXCISE PAROTID GLAND 42440 EXCISION SUBMAXILLARY GLAND 42700 * DRAINAGE OF TONSIL ABSCESS 42800 BIOPSY OF THROAT 42804 BIOPSY OF UPPER NOSE/THROAT 42809 REMOVE PHARYNX FOREIGN BODY 42810 EXCISION OF NECK CYST 42820 REMOVE TONSILS AND ADENOIDS 42821 REMOVE TONSILS AND ADENOIDS 42825 REMOVAL OF TONSILS 42826 REMOVAL OF TONSILS 42830 REMOVAL OF ADENOIDS 42835 REMOVAL OF ADENOIDS 42950 RECONSTRUCTION OF THROAT -17-
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The information below marked by * and [ ] has been omitted pursuant to a request for confidential treatment. The omitted portion has been separately filed with the Commission. PHYSICIAN NETWORK PARTICIPATION AGREEMENT Attachment A-3 HMO Fee Schedule CODE CPT NAME FEE ---- -------- --- 42960 CONTROL THROAT BLEEDING [*] 43200 ESOPHAGUS ENDOSCOPY 43202 ESOPHAGUS ENDOSCOPY, BIOPSY 60100 * BIOPSY OF THYROID 60220 PARTIAL REMOVAL OF THYROID 60220A ASST SURG PARTIAL REMOVAL OF T 60280 REMOVE THYROID DUCT LESION 67971A RECONSTRUCTION EYELID/ASST SUR 68200 * TREAT EYELID BY INJECTION 68770 CLOSE TEAR SYSTEM FISTULA 69200 CLEAR OUTER EAR CANAL 69205 CLEAR OUTER EAR CANAL 69210 REMOVE IMPACTED EAR WAX 69220 CLEAN OUT MASTOID CAVITY 69399 OUTER EAR SURGERY PROCEDURE 69401 INFLATE MIDDLE EAR CANAL 69420 * INCISION OF EARDRUM 69424 REMOVE VENTILATING TUBE 69433 * CREATE EARDRUM OPENING 69436 CREATE EARDRUM OPENING 69436A CREATE EARDRUM OPENING/ASST SU 69540 REMOVE EAR LESION 69610 REPAIR OF EARDRUM 69631 REPAIR EARDRUM STRUCTURES 69641 REVISE MIDDLE EAR & MASTOID 69660 REVISE MIDDLE EAR BONE 69661 REVISE MIDDLE EAR BONE 69799 MIDDLE EAR SURGERY PROCEDURE 70210 X-RAY EXAM OF SINUSES 70220 X-RAY EXAM OF SINUSES 70360 X-RAY EXAM OF NECK 70380 X-RAY EXAM OF SALIVARY GLAND -18-
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The information below marked by * and [ ] has been omitted pursuant to a request for confidential treatment. The omitted portion has been separately filed with the Commission. PHYSICIAN NETWORK PARTICIPATION AGREEMENT Attachment A-3 HMO Fee Schedule CODE CPT NAME FEE ---- -------- --- 70480 CAT SCAN OF SKULL [*] 71020 X-RAY EXAM OF CHEST 74220 CONTRAST X-RAY EXAM, ESOPHAGUS 76499 RADIOGRAPHIC PROCEDURE 76536 ECHOGRAPHY HEAD NECK 76805 ECHO EXAM OF PELVIS 78990 PROVIDE RADIOISOTOPE(S) 80019 19 OR MORE BLOOD/URINE TESTS 81000 URINALYSIS WITH MICROSCOPY 81002 ROUTINE URINE ANALYSIS 82785 RIA ASSAY GAMMAGLOBULINE 84435 ASSAY THYROXINE (T-4) 84439 RIA ASSAY, FREE THYROXINE 84443 RIA ASSAY OF TS HORMONE 84703 GONADOTROPIN, CHORIONIC 85002 BLEEDING TIME TEST 85018 HEMOGLOBIN, COLORIMETRIC 85023 HEMOGRAM & PLATELET COUNT 85610 PROTHROMBIN TIME 85651 RBC SEDIMENTATION RATE 85730 THROMBOPLASTIN TIME, PARTIAL 86235 ENA ANTIBODY 86331 IMMUNODIFFUSION OUCHTERLONY 86430 RHEUMATOID FACTOR TEST 86580 TB INTRADERMAL TEST 86592 BLOOD SEROLOGY, QUALITATIVE 87060 NOSE/THROAT CULTURE, BACTERIA 87070 CULTURE SPECIMEN, BACTERIA 87081 BACTERIA CULTURE SCREEN 87186 ANTIBIOTIC SENSITIVITY, MIC 87210 SMEAR, STAIN & INTERPRET 88150 CYTOPATHOLOGY, PAP SMEAR -19-
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The information below marked by * and [ ] has been omitted pursuant to a request for confidential treatment. The omitted portion has been separately filed with the Commission. PHYSICIAN NETWORK PARTICIPATION AGREEMENT Attachment A-3 HMO Fee Schedule CODE CPT NAME FEE ---- -------- --- 88304 SURGICAL PATHOLOGY, COMPLETE [*] 88305 SURGICAL PATHOLOGY, COMPLETE 90782 INJECTION OF MEDICATION 90784 INJECTION OF MEDICATION (IV) 90844 INDIVIDUAL PSYCHOTHERAPY 92504 EAR MICROSCOPY EXAMINATION 92506 SPEECH & HEARING EVALUATION 92507 SPEECH/HEARING THERAPY 92508 SPEECH/HEARING THERAPY 92511 NASOPHARYNGOSCOPY 92532 POSITIONAL NYSTAGMUS STUDY 92533 CALORIC VESTIBULAR TEST 92541 SPONTANEOUS NYSTAGMUS TEST 92542 POSITIONAL NYSTAGMUS TEST 92543 CALORIC VESTIBULAR TEST 92544 OPTOKINETIC NYSTAGMUS TEST 92545 OSCILLATING TRACKING TEST 92546 TORSION SWING RECORDING 92547 SUPPLEMENTAL ELECTRICAL TEST 92551 PURE TONE HEARING TEST, AIR 92552 PURE TONE AUDIOMETRY, AIR 92553 AUDIOMETRY, AIR & BONE 92555 SPEECH THRESHOLD AUDIOMETRY 92556 SPEECH AUDIOMETRY, COMPLETE 92557 COMPREHENSIVE AUDIOMETRY 92560 BEKESY AUDIOMETRY, SCREEN 92563 TONE DECAY HEARING TEST 92567 TYMPANOMETRY 92568 ACOUSTIC REFLEX TESTING 92569 ACOUSTIC REFLEX DECAY TEST 92572 STAGGERED SPONDAIC WORD TEST 92582 CONDITIONING PLAY AUDIOMETRY -20-
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The information below marked by * and [ ] has been omitted pursuant to a request for confidential treatment. The omitted portion has been separately filed with the Commission. PHYSICIAN NETWORK PARTICIPATION AGREEMENT Attachment A-3 HMO Fee Schedule CODE CPT NAME FEE ---- -------- --- 92583 SELECT PICTURE AUDIOMETRY [*] 92584 ELECTROCOCHLEOGRAPHY 92585 BRAINSTEM EVOKED AUDIOMETRY 92589 AUDITORY FUNCTION TEST(S) 93000 ELECTROCARDIOGRAM, COMPLETE 93005 ELECTROCARDIOGRAM, TRACING 93875 NON-INVASIVE PHYSIOLOGIC STUDI 97010 HOT OR COLD PACKS THERAPY 97110 THERAPEUTIC EXERCISES 97112 NEUROMUSCULAR REEDUCATION 97116 GAIT TRAINING THERAPY 97530 KINETIC ACTIVITIES 97752 MUSCLE TESTING WITH EXERCISE 99025 INITIAL SURGICAL EVALUATION 99201 OFFICE/OUTPATIENT VISIT, NEW 99202 OFFICE/OUTPATIENT VISIT, NEW 99203 OFFICE/OUTPATIENT VISIT, NEW 99204 OFFICE/OUTPATIENT VISIT, NEW 99205 OFFICE/OUTPATIENT VISIT, NEW 99211 OFFICE/OUTPATIENT VISIT, ESTAB 99212 OFFICE/OUTPATIENT VISIT, ESTAB 99213 OFFICE/OUTPATIENT VISIT, ESTAB 99214 OFFICE/OUTPATIENT VISIT, ESTAB 99215 OFFICE/OUTPATIENT VISIT, ESTAB 99221 INITIAL HOSPITAL CARE 99222 INITIAL HOSPITAL CARE 99223 INITIAL HOSPITAL CARE 99231 SUBSEQ HOSPITAL CARE 99241 OFFICE CONSULTATION 99242 OFFICE CONSULTATION 99243 OFFICE CONSULTATION 99244 OFFICE CONSULTATION -21-
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The information below marked by * and [ ] has been omitted pursuant to a request for confidential treatment. The omitted portion has been separately filed with the Commission. PHYSICIAN NETWORK PARTICIPATION AGREEMENT Attachment A-3 HMO Fee Schedule CODE CPT NAME FEE ---- -------- --- 99251 INITIAL INPAT CONSULTATION [*] 99252 INITIAL INPAT CONSULTATION 99253 INITIAL INPAT CONSULTATION 99272 CONFIRMATORY CONSULT 99274 CONFIRMATORY CONSULT 99283 EMERGENCY DEPT. VISIT 99284 EMERGENCY DEPT. VISIT 99395 PERIODIC REEVAL ESTAB ADULT -22-
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Physician Group JGPXXN050892 PHYSICIAN NETWORK HMO ACCESS AGREEMENT This Access Agreement is effective as of July 1, 1994 and is entered into by and between Atlanta-AHP, Inc. ("Physician Network"), Aetna Health Plans of Georgia, Inc. ("HMO") and Aetna Health Management, Inc. ("AHM"). WHEREAS, Physician Network and AHM have entered into a Participation Agreement so that Physician Network may participate in various Aetna health benefits products ("Participation Agreement"), and WHEREAS, HMO offers one or more of said products, and WHEREAS, it is the intention of all the parties for Physician Network and its Network Physicians to be Participating Providers in HMO's provider Network, NOW, THEREFORE, in consideration for the mutual promises made herein and for other good and valuable consideration, the parties agree as follows: 1. All terms shall have the meanings given to them in the Participation Agreement, unless defined below. 2. HMO agrees that to the extent it is a Payor, it will comply with the Payor terms of Participation Agreement, including paying for Covered Services in accordance with HMO's Plans. 3. AHM agrees to HMO's participation as a Payor and user of Physician Network's services under the Participation Agreement. 4. Physician Network agrees that its Network Physicians will serve as Participating Providers in HMO's provider Network in accordance with the terms and conditions of the Participation Agreement and this Access Agreement. The parties agree that if any of the terms of the Access Agreement conflict with any of the terms in the Participation Agreement, the terms of this Access Agreement shall prevail with respect to services provided to HMO's Members. 5. This Access Agreement shall terminate: a. Upon 90 days prior written notice by HMO or by Physician Network to the other parties. The parties agree that the "Obligations Following Termination" provision of -23-
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the Participation Agreement shall continue to bind the parties following termination of this Access agreement. b. Immediately upon the termination of the Participation Agreement. The parties agree that the "Obligations Following Termination" provision of the Participation Agreement shall continue to bind the parties following termination of this Access Agreement. AHM agrees to notify HMO immediately of any termination of the Participation Agreement. c. Immediately upon the termination of the Management Agreement between AHM and HMO. Should said Management Agreement terminate, HMO and Physician Network agree that: I. They shall continue to abide by the terms of the Participation Agreement and the additional terms of this Access Agreement for those Plans underwritten or administered by HMO. II. HMO shall abide by the duties of AHM under the Participation Agreement for those Plans underwritten or administered by HMO. 6. The parties recognize that neither termination of this Access Agreement nor termination of the Management Agreement between AHM and HMO will terminate the Participation Agreement between AHM and Physician Network. 7. This Agreement and the Participation Agreement constitute the entire agreement among the parties with respect to the participation of Physician Network in HMO's provider Network and supersedes all prior oral and written understandings between HMO and Physician Network. IN WITNESS WHEREOF, the parties have executed this Access Agreement below: ATLANTA-AHP, INC. By:___________________________ Printed Name:___________________ Title:___________________________ Date:___________________________ -24-
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AETNA HEALTH PLANS OF GEORGIA, INC. By:_______________________________ Printed Name:___________________ Title:___________________________ Date:___________________________ AETNA HEALTH MANAGEMENT, INC. By:_______________________________ Printed Name:___________________ Title:___________________________ Date:___________________________ -25-
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The information below marked by * and [ ] has been omitted pursuant to a request for confidential treatment. The omitted portion has been separately filed with the Commission Aetna Health Plans of GA, Inc. Hospital Risk Share Agreement Base Period Analysis # @ RISK $ PAID/ PATIENTS $ PAID PATIENT PMPM -------- ------ ------- ---- INPATIENT (ALL CAPITATED PHYSICIANS): [*] [*] TOTAL INPATIENT, ALL PAR. CAP. OUTPATIENTS: PAR. CAP.: [*] [*] SUBTOTAL, OUTPATIENT, PAR. CAP. NON-PAR CAP. ([*]) TOTAL, OUTPATIENT TOTAL FACILITY CHARGES -26-

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