New York Codes, Rules and Regulations › Title 10 - DEPARTMENT OF HEALTH › Chapter XI - Limits On Administrative Expenses And Executive Compensation › Part 1002 - Limits On Administrative Expenses And Executive Compensation › Section 1002.6 - Penalties

Current through Register Vol. 46, No. 28, July 10, 2024
(a) Notice of
				preliminary determination of non-compliance. Whenever it is determined that a
				covered provider may not be in compliance with the requirements of section
				1002.2 or 1002.3 of this Part and has not
				obtained a waiver, the provider shall be notified in writing of the basis for
				that determination. Such notice shall provide the covered provider with an
				opportunity and a procedure to submit additional or clarifying information
				within 30 calendar days of the provider's receipt of such notice to demonstrate
				compliance with this Part. Failure to submit additional or clarifying
				information within the required time period shall result in the determination
				of non-compliance becoming final.
(b) Corrective action period. If the
				determination of non-compliance becomes final as set forth in subdivision (a)
				of this section or if the department or its designee determines, after
				reviewing and considering any information submitted by the covered provider,
				that such provider is not in compliance with the requirements of section 1002.2
				or 1002.3 of this Part, the provider
				shall receive notice of such determination and a notice to cure. Such notice
				shall allow the covered provider a period of not less than six months to
				correct the violation(s) identified (the corrective action period) prior to
				additional enforcement action or penalties being imposed, and shall require
				that the covered provider submit within 30 calendar days a corrective action
				plan (CAP) for approval by the department or its designee.
(c) Corrective action plan. Within 30
				calendar days of receipt of the covered provider's CAP, the department or its
				designee shall either approve such CAP or request clarification or alterations.
				The covered provider shall make such alterations to the CAP as may be
				reasonably required by the department or its designee. Once the CAP has been
				approved and the covered provider notified, and unless otherwise provided in
				the approved CAP, the covered provider shall have six months to complete the
				CAP and comply with this Part.
(d)
				Failure to cure. At the conclusion of the period for implementation of an
				approved CAP, the department or its designee may request information from the
				covered provider to determine whether the CAP has been fully and properly
				completed. If it has been so completed, the matter shall be considered closed
				and no further action on the part of the department or the provider shall be
				required. If the department or its designee determines that the CAP has not
				been fully and properly implemented within the designated corrective action
				period, the department or its designee shall provide written notice to the
				provider and may take one or more of the following actions, taking into account
				the seriousness of the violations, the nature of the provider's services, and
				the provider's efforts to correct the violations, if any:
(1) At its sole discretion, modify the CAP
				and/or extend the time for the provider to complete implementation.
(2) Issue a final determination of
				non-compliance, together with a notice of the sanctions which the department
				seeks to impose. Such sanctions may include:
(i) Redirection of State funds or
				State-authorized payments to be used to provide program services, where
				possible and consistent with Federal and State laws;
(ii) Suspension, modification, limitation, or
				revocation of the provider's license(s) to operate program(s) for the delivery
				of program services;
(iii)
				Suspension, modification or termination of contracts or other agreements with
				the covered provider; and
(iv) Any
				other lawful actions or penalties deemed appropriate by the department or its
				designee.