How will the current assets of both organizations be protected?
This relationship is governed exclusively by the Affiliation Agreement. Under the Affiliation Agreement, at no time, can CMC funds be used for anything contrary to the ERDs. Under the proposed documents, DHH does not have the unilateral power to exact contributions from CMCHS or to direct CMC to contribute to the system. Rather it may request such contribution if certain financial parameters are met, but the decision to grant the request will rest with the CMCHS Board which will continue to operate under a continuing fiduciary duty to act in the best interests of CMCHS. The Agreement will also make clear that the DHH Board will not have a “line item veto” over any annual or revised operating or capital budgets of CMCHS. Section 3.9.6 states, “Most of the significant clinical and other programmatic initiatives and development in Manchester will be identified by CMCHS management and its Board (or by the Manchester System Members.
