Reassessments against Flat-rate Contract payments

Payments in respect of flat-rate contracts are made in arrears, so there is no reassessment as related to over and underpayments. However, upon termination of a flat-rate contract, the system will amend the payment schedules that were set-up on activation of the contract. For example, if a flat-rate contract is set-up for a period of one year, from 1st January 2011 to 31st December 2011, with a monthly payment frequency and a total amount of $12,000, each month a payment of $1000 will go to the provider. If the contract is terminated on 15th March, the payment due up until 15th March is calculated. When the payments are generated at the month end (i.e. at the end of March), a payment of $500 will be generated.