FOR ITS DETERMINATION THAT TENET HAS
FAILED TO COMPLY FULLY AND ADEQUATELY WITH THE CIA OBLIGATION(S) AT ISSUE AND
STEPS TENET SHALL TAKE TO COMPLY WITH THE CIA.
(THIS STIPULATED PENALTY SHALL
BEGIN TO ACCRUE 10 DAYS AFTER TENET RECEIVES THIS NOTICE FROM OIG OF THE FAILURE
TO COMPLY.)
A STIPULATED PENALTY AS DESCRIBED IN THIS SUBSECTION SHALL NOT BE
DEMANDED FOR ANY VIOLATION FOR WHICH OIG HAS SOUGHT A STIPULATED PENALTY UNDER
SUBSECTIONS 1-6 OF THIS SECTION.
B.
TIMELY WRITTEN REQUESTS FOR EXTENSIONS.
TENET MAY, IN ADVANCE OF
THE DUE DATE, SUBMIT A TIMELY WRITTEN REQUEST FOR AN EXTENSION OF TIME TO
PERFORM ANY ACT OR FILE ANY NOTIFICATION OR REPORT REQUIRED BY THIS CIA.
NOTWITHSTANDING ANY OTHER PROVISION IN THIS SECTION, IF OIG GRANTS THE TIMELY
WRITTEN REQUEST WITH RESPECT TO AN ACT, NOTIFICATION, OR REPORT, STIPULATED
PENALTIES FOR FAILURE TO PERFORM THE ACT OR FILE THE NOTIFICATION OR REPORT
SHALL NOT BEGIN TO ACCRUE UNTIL ONE DAY AFTER TENET FAILS TO MEET THE REVISED
DEADLINE SET BY OIG.
NOTWITHSTANDING ANY OTHER PROVISION IN THIS SECTION, IF
OIG DENIES SUCH A TIMELY WRITTEN REQUEST, STIPULATED PENALTIES FOR FAILURE TO
PERFORM THE ACT OR FILE THE NOTIFICATION OR REPORT SHALL NOT BEGIN TO ACCRUE
UNTIL THREE BUSINESS DAYS AFTER TENET RECEIVES OIG'S WRITTEN DENIAL OF SUCH
REQUEST OR THE ORIGINAL DUE DATE, WHICHEVER IS LATER.
A "TIMELY WRITTEN
REQUEST" IS DEFINED AS A REQUEST IN WRITING RECEIVED BY OIG AT LEAST FIVE
BUSINESS DAYS PRIOR TO THE DATE BY WHICH ANY ACT IS DUE TO BE PERFORMED OR ANY
NOTIFICATION OR REPORT IS DUE TO BE FILED.
C.
PAYMENT OF STIPULATED PENALTIES.
1.
DEMAND LETTER.
UPON A FINDING THAT TENET HAS FAILED TO COMPLY
WITH ANY OF THE OBLIGATIONS DESCRIBED IN SECTION X.A AND AFTER DETERMINING THAT
STIPULATED PENALTIES ARE APPROPRIATE, OIG SHALL NOTIFY TENET OF:
(A) TENET'S
FAILURE TO COMPLY; AND (B) OIG'S EXERCISE OF ITS CONTRACTUAL RIGHT TO DEMAND
PAYMENT OF THE STIPULATED PENALTIES (THIS NOTIFICATION IS REFERRED TO AS THE
"DEMAND LETTER").
2.
RESPONSE TO DEMAND LETTER.
WITHIN 10 DAYS AFTER THE RECEIPT OF
THE DEMAND LETTER, TENET SHALL EITHER:
(A) CURE THE BREACH TO OIG'S
SATISFACTION AND PAY THE APPLICABLE STIPULATED PENALTIES; OR (B) REQUEST A
HEARING BEFORE AN HHS ADMINISTRATIVE LAW JUDGE (ALJ) TO DISPUTE OIG'S
DETERMINATION OF NONCOMPLIANCE, PURSUANT TO THE AGREED UPON PROVISIONS SET FORTH
BELOW IN SECTION X.E.
IN THE EVENT TENET ELECTS TO REQUEST AN ALJ HEARING, THE
STIPULATED PENALTIES SHALL CONTINUE TO ACCRUE UNTIL TENET CURES, TO OIG'S
SATISFACTION, THE ALLEGED BREACH IN DISPUTE.
FAILURE TO RESPOND TO THE DEMAND
LETTER IN ONE OF THESE TWO MANNERS WITHIN THE ALLOWED TIME PERIOD SHALL BE
CONSIDERED A MATERIAL BREACH OF THIS CIA AND SHALL BE GROUNDS FOR EXCLUSION
UNDER SECTION X.D.
3.
FORM OF PAYMENT.
PAYMENT OF THE STIPULATED PENALTIES SHALL BE
MADE BY CERTIFIED OR CASHIER'S CHECK, PAYABLE TO:
"SECRETARY OF THE DEPARTMENT
OF HEALTH AND HUMAN SERVICES," AND SUBMITTED TO OIG AT THE ADDRESS SET FORTH IN
SECTION