| (a) DADS may impose a sanction if DADS determines that
the contractor failed to follow the terms of the contract or the contractor
failed to comply with program rules, policies, and procedures. Examples
of these failures include:
(1) jeopardizing a ward's health and safety;
(2) failing to comply with a plan of correction;
(3) failing to follow an agreed-upon audit resolution
payment plan;
(4) failing to provide services according to the contract
or program requirements; or
(5) a validated report of abuse, neglect, or exploitation
when the perpetrator is an owner, employee, or volunteer who has contact
with a ward or with the estate or benefits of a ward.
(b) DADS may impose a sanction described in this subsection.
(1) Plan of correction. DADS may require a contractor
to submit a plan of correction that includes the date the findings
will be corrected.
(2) Protective action plan. DADS may require a contractor
to take immediate action and put into place an abbreviated and immediate
protective action plan if DADS identifies health or safety issues.
The plan must address the contractor's actions to be taken to ensure
the health and safety of the ward.
(3) Recoupment. DADS may collect money the contractor
owes as the result of overpayments or other billing irregularities
or both.
(4) Ward referral hold. DADS may stop referring new
wards to the contractor. The ward referral hold is released when DADS
determines the contractor has resolved the reason for the hold.
(5) Contractor hold. DADS may withhold a contractor's
payments. The contractor hold is released when DADS determines the
contractor has resolved the reason for the hold.
(6) Involuntary contract termination. DADS may terminate
a contractor's contract for cause by citing the contractor's failure
to comply with the terms of the contract or with DADS program rules,
policies, and procedures. If DADS terminates a contract, DADS conducts
a review to determine any overpayment or underpayment and makes a
final review to determine if the contractor has met the terms of
the contract. If the account is overpaid, the contractor must reimburse
DADS within 30 calendar days after receiving written notice from DADS.
If the account balance is not paid in full by that time, DADS may
charge interest on all unpaid debts starting on the 31st day after
the contractor received the written notice from DADS. Interest is
computed on a simple interest basis in accordance with the Texas Finance
Code, Chapter 304, on the unpaid balance due. DADS may charge and
collect interest on installment payments. If an appeal is made, interest
continues to accrue during any administrative appeal process extending
beyond the 31st day after notice of a balance due. If any part of
an appeal is found in the contractor's favor, the interest that accrued
against the part of the appeal found in the contractor's favor is
dismissed.
(7) Suspension. DADS may temporarily suspend the contractor's
right to conduct business with DADS. The causes for and conditions
of suspension are described in subsection (a) of this section. A suspension
is in effect until an investigation, hearing, or trial is concluded
and DADS can make a determination about the agency's future right
to contract. DADS may impute the conduct of an individual, corporation,
partnership, or other association to the contractor.
(c) A contractor may appeal an adverse action DADS
takes against its contract. To appeal an action, the contractor must
request the appeal in writing in accordance with 1 TAC Chapter 357,
Subchapter I.
|
| Source Note: The provisions of this §361.207 adopted to be effective September 1, 2006, 31 TexReg 6797; amended to be effective February 9, 2015, 40 TexReg 609; transferred effective March 15, 2022, as published in the February 25, 2022 issue of the Texas Register, 47 TexReg 983 |
