A Service Provider Agreement (SPA) is a contract between St. Michael’s Hospital and an external company or independent contractor that performs specific work that a normal, regular working hospital employee could not perform in his or her day-to-day tasks. Additionally, a SPA can be drafted if an external party wants to “hire” St. Michael’s Hospital to conduct research or access hospital resources.
Usually, if the service provided is a one-time obligation under $500, then a Service Provider Agreement can be forgiven; however, if the service is recurring, then a Service Provider Agreement is necessary.
Some of the common services that require a Service Provider Agreement include:
|Scenario||Is a Service Provider Agreement needed?|
|I have just received an invoice from Company ______ which printed some posters for me. I may need to use their services again in the future.||No|
|Ms. _____ provided us with transcription services. We only needed her for just this one project; thus, we would not require her services anymore.||No|
|Company ________ is a company that provides translation services that we’ve worked with a couple of times; however, we do not have a Service Provider Agreement.||Yes|
|Mr. ______ sent an invoice for the consulting work that he has done in the month. This is the first time we’ve received an invoice from him and we will continue to work with him for the rest of the year.||Yes|
|The external contractor may be working with us once a year on several different projects.||Yes|
|Mrs. _____ will be assisting us once for our project, however the payment is over $500.00.||Yes|
Any payment to a vendor over $24,999.99 will need to go through Procurement