Common use of Private Contract Clause in Contracts

Private Contract. Group understands that Blue Shield is prohibited by CMS from paying capitation to, or including in its network, any provider that has entered into a private contract with a Member for the provision of services. Blue Shield reserves the right to terminate any such provider from its network. Further, if the provider so terminated was a Group Physician, Blue Shield shall have the right to reduce Group’s capitation by the amount of any capitation that was paid either directly or indirectly to such provider(s). This provision shall remain in effective for a period of two (2) years from the time that all direct contracts between provider and Member have been terminated.