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PLAYBOOK TEMPLATES

Medical Equipment Lease Purchase Agreement

A Medical Equipment Lease & Purchase Agreement governs acquisition or leasing of medical devices and technology. This playbook addresses maintenance, warranties, and ownership transfer terms.

Audit and Inspection Rights

Why This Matters: Enables early detection of non-compliance or financial discrepancies, reducing regulatory and operational risks.

Negotiation strategy

If you're the Healthcare Provider:

Ensure audit rights are comprehensive enough to cover all necessary records and facilities. Negotiate for reasonable notice periods and remediation timelines to minimize operational disruptions.

If you're the Lessee:

Limit the scope of audits to essential records to protect sensitive information. Advocate for longer notice periods to prepare adequately for audits.

Essential elements

1

Audit Frequency

Annual or bi-annual audits.
2

Scope of Audits

Financial and operational records.
3

Notice Period

30 to 45 days notice.

Action framework

ACCEPT

Propose edits to adjust audit frequency, scope, and notice periods as necessary.

EDIT

Reject if the clause allows excessive audits disrupting operations.

ADD

Add if audit rights are missing to ensure compliance and transparency.

PRO TIP

Balance audit rights to ensure compliance without imposing undue burden on either party.

Example clauses

FAVORABLE

Preferred Audit Clause

"Annual audits with 30-day notice, covering financial and operational records."
NEUTRAL

Standard Audit Clause

"The parties shall have the right to audit each other's records and facilities annually, with a 30-day notice, to ensure compliance with this agreement."
UNFAVORABLE

Excessive Audit Clause

"Quarterly audits with 10-day notice, covering all records and facilities."

Fallbacks

High-Risk Projects

In high-risk projects, increase audit frequency and scope to ensure compliance with critical standards.

Regulatory-Specific Requirements

Ensure audits comply with specific regulatory standards such as FDA or HIPAA.

Cross-Border Transactions

Consider additional compliance requirements for audits in international agreements.
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