VI.
4.
INDEPENDENCE FROM MATERIAL BREACH DETERMINATION.
EXCEPT AS SET
FORTH IN SECTION X.D.1.C, THESE PROVISIONS FOR PAYMENT OF STIPULATED PENALTIES
SHALL NOT AFFECT OR OTHERWISE SET A STANDARD FOR OIG'S DECISION THAT TENET HAS
MATERIALLY BREACHED THIS CIA, WHICH
31
DECISION SHALL BE MADE AT OIG'S DISCRETION AND SHALL BE GOVERNED BY THE
PROVISIONS IN SECTION X.D, BELOW.
D.
EXCLUSION FOR MATERIAL BREACH OF THIS CIA.
1.
DEFINITION OF MATERIAL BREACH.
A MATERIAL BREACH OF THIS CIA
MEANS:
A.
A FAILURE BY TENET TO REPORT A REPORTABLE EVENT, TAKE CORRECTIVE
ACTION, AND MAKE THE APPROPRIATE REFUNDS, AS REQUIRED IN SECTION III.H;
B.
A REPEATED OR FLAGRANT VIOLATION OF THE OBLIGATIONS UNDER THIS
CIA, INCLUDING, BUT NOT LIMITED TO, THE OBLIGATIONS ADDRESSED IN SECTION X.A;
C.
A FAILURE TO RESPOND TO A DEMAND LETTER CONCERNING THE PAYMENT OF
STIPULATED PENALTIES IN ACCORDANCE WITH SECTION X.C; OR
D.
A FAILURE TO ENGAGE AND USE AN IRO IN ACCORDANCE WITH
SECTION III.D.
2.
NOTICE OF MATERIAL BREACH AND INTENT TO EXCLUDE.
THE PARTIES
AGREE THAT A MATERIAL BREACH OF THIS CIA BY TENET CONSTITUTES AN INDEPENDENT
BASIS FOR TENET'S EXCLUSION FROM PARTICIPATION IN THE FEDERAL HEALTH CARE
PROGRAMS.
UPON A DETERMINATION BY OIG THAT TENET HAS MATERIALLY BREACHED THIS
CIA AND THAT EXCLUSION IS THE APPROPRIATE REMEDY, OIG SHALL NOTIFY TENET OF:
(A) TENET'S MATERIAL BREACH; AND (B) OIG'S INTENT TO EXERCISE ITS CONTRACTUAL
RIGHT TO IMPOSE EXCLUSION (THIS NOTIFICATION IS HEREINAFTER REFERRED TO AS THE
"NOTICE OF MATERIAL BREACH AND INTENT TO EXCLUDE").
3.
OPPORTUNITY TO CURE.
TENET SHALL HAVE 30 DAYS FROM THE DATE OF
RECEIPT OF THE NOTICE OF MATERIAL BREACH AND INTENT TO EXCLUDE TO DEMONSTRATE TO
OIG'S SATISFACTION THAT:
A.
TENET IS IN COMPLIANCE WITH THE OBLIGATIONS OF THE CIA CITED BY
OIG AS BEING THE BASIS FOR THE MATERIAL BREACH;
B.
THE ALLEGED MATERIAL BREACH HAS BEEN CURED; OR
C.
THE ALLEGED MATERIAL BREACH CANNOT BE CURED WITHIN THE 30-DAY
PERIOD, BUT THAT:
(I) TENET HAS BEGUN TO TAKE ACTION TO CURE THE MATERIAL
BREACH; (II) TENET IS PURSUING SUCH ACTION WITH DUE DILIGENCE; AND (III) TENET
HAS PROVIDED TO OIG A REASONABLE TIMETABLE FOR CURING THE MATERIAL BREACH.
4.
EXCLUSION LETTER.
IF, AT THE CONCLUSION OF THE 30-DAY PERIOD,
TENET FAILS TO SATISFY THE REQUIREMENTS OF SECTION X.D.3, OIG MAY EXCLUDE TENET
FROM PARTICIPATION IN THE FEDERAL HEALTH CARE PROGRAMS.
OIG SHALL NOTIFY TENET
IN WRITING OF ITS DETERMINATION TO EXCLUDE TENET (THIS LETTER SHALL BE REFERRED
TO HEREINAFTER AS THE "EXCLUSION LETTER").
SUBJECT TO THE DISPUTE RESOLUTION
PROVISIONS IN SECTION X.E, BELOW, THE EXCLUSION SHALL GO INTO EFFECT 30 DAYS
AFTER THE DATE OF TENET'S RECEIPT OF THE EXCLUSION LETTER.
THE EXCLUSION SHALL
HAVE NATIONAL EFFECT AND SHALL ALSO APPLY TO ALL OTHER FEDERAL PROCUREMENT AND
NONPROCUREMENT PROGRAMS.
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REINSTATEMENT TO PROGRAM PARTICIPATION IS NOT AUTOMATIC.
AFTER THE END OF THE
PERIOD OF EXCLUSION, TENET MAY APPLY FOR REINSTATEMENT BY SUBMITTING A WRITTEN
REQUEST FOR REINSTATEMENT IN ACCORDANCE WITH THE PROVISIONS AT