|(a) A contractor is liable to HHSC for amounts paid
to the contractor for a service if the contractor has not complied
with contract requirements regarding a service claim or payment for
a service, including §49.305 of this chapter (relating to Records), §49.311
of this chapter (relating to Claims Payment), and other HHSC rules
governing services provided under the contract.
(b) If a contractor is liable to HHSC in accordance
with subsection (a) of this section, HHSC may propose to recoup funds
for the amount due to HHSC.
(c) If HHSC proposes to recoup funds paid to a contractor
in accordance with subsection (b) of this section, HHSC notifies the
contractor of the proposed recoupment in writing before the effective
date of recoupment.
(d) HHSC recoups funds paid to contractor on the date
given in HHSC's notice of proposed recoupment if:
(1) the contractor does not appeal the proposed recoupment;
(2) the contractor appeals the proposed recoupment
and the final decision from the administrative hearing is favorable