Common use of CONTRACT REMEDIES AND SANCTIONS Clause in Contracts

CONTRACT REMEDIES AND SANCTIONS. The state will utilize a variety of means to assure compliance with contract requirements. The state will pursue remedial actions and possibly sanctions as needed to resolve outstanding contract violations and performance concerns. The application of remedies and sanctions shall be a matter of public record. The MDHHS may utilize actions in the following order: A. Notice of the contract violation and conditions will be issued to the CMHSP with copies to the board. B. Require a plan of correction and specified status reports that become a contract performance objective (Attachment C 7.0.2). C. If previous items above have not worked, impose a direct dollar penalty and make it a non- matchable CMHSP administrative expense and reduce earned savings by the same dollar amount. D. For sanctions related to reporting compliance issues, the MDHHS may delay 10% of scheduled payment amount to the CMHSP until after compliance is achieved. The MDHHS may add time to the delay on subsequent uses of this provision. (Note: The MDHHS may apply this sanction in a subsequent payment cycle and will give prior written notice to the CMHSP). E. Initiate contract termination. The implementation of any of these actions does not require a contract amendment to implement. The sanction notice to the CMHSP is sufficient authority according to this provision. The use of remedies and sanctions will typically follow a progressive approach, but the MDHHS reserves the right to deviate from the progression as needed to seek correction of serious, or repeated, or patterns of substantial non-compliance or performance problems. The CMHSP can utilize the dispute resolution provision of the contract to dispute a contract compliance notice issued by the MDHHS. The following are examples of compliance or performance problems for which remedial actions including sanctions can be applied to address repeated, or substantial breaches, or reflect a pattern of non-compliance or substantial poor performance. This listing is not meant to be exhaustive, but only representative. A. Reporting timeliness, quality and accuracy. B. Performance Indicator Standards. C. Repeated Site-Review non-compliance (repeated failure on same item). X. Xxxxxxx to complete or achieve contractual performance objectives. E. Substantial inappropriate service denial of services required by this contract or substantial services not corresponding to condition. Substantial can be a pattern or large volume or small volume, but severe impact. F. Repeated failure to honor appeals/grievance assurances. Substantial or repeated health and/or safety violations.

CONTRACT REMEDIES AND SANCTIONS. The state will utilize a variety of means to assure compliance with contract requirements. The state will pursue remedial actions and possibly sanctions as needed to resolve outstanding contract violations and performance concerns. The application of remedies and sanctions shall be a matter of public record. The MDHHS may utilize actions in the following order: A. Notice of the contract violation and conditions will be issued to the CMHSP with copies to the board. B. Require a plan of correction and specified status reports that become a contract performance objective (Attachment C 7.0.2). C. If previous items above have not worked, impose a direct dollar penalty and make it a non- non-matchable CMHSP administrative expense and reduce earned savings by the same dollar amount. D. For sanctions related to reporting compliance issues, the MDHHS may delay 10% of scheduled payment amount to the CMHSP until after compliance is achieved. The MDHHS may add time to the delay on subsequent uses of this provision. (Note: The MDHHS may apply this sanction in a subsequent payment cycle and will give prior written notice to the CMHSP). E. Initiate contract termination. The implementation of any of these actions does not require a contract amendment to implement. The sanction notice to the CMHSP is sufficient authority according to this provision. The use of remedies and sanctions will typically follow a progressive approach, but the MDHHS reserves the right to deviate from the progression as needed to seek correction of serious, or repeated, or patterns of substantial non-compliance or performance problems. The CMHSP can utilize the dispute resolution provision of the contract to dispute a contract compliance notice issued by the MDHHS. The following are examples of compliance or performance problems for which remedial actions including sanctions can be applied to address repeated, or substantial breaches, or reflect a pattern of non-compliance or substantial poor performance. This listing is not meant to be exhaustive, but only representative. A. Reporting timeliness, quality and accuracy. B. Performance Indicator Standards. C. Repeated Site-Review non-compliance (repeated failure on same item). X. Xxxxxxx to complete or achieve contractual performance objectives. E. Substantial inappropriate service denial of services required by this contract or substantial services not corresponding to condition. Substantial can be a pattern or large volume or small volume, but severe impact. F. Repeated failure to honor appeals/grievance assurances. Substantial or repeated health and/or safety violations.

CONTRACT REMEDIES AND SANCTIONS. The state CMHSP will utilize a variety of means to assure ensure compliance with contract requirements. The state CMHSP will pursue remedial actions and possibly sanctions as needed to resolve outstanding contract violations and performance concerns. The application of remedies and sanctions shall be a matter of public record. The MDHHS CMHSP may utilize actions in any or all of the following order: A. Notice actions, or other such action at its discretion, as it deems appropriate to address the contract violation/noncompliance:  Issue notice of the contract violation and conditions will be issued to the CMHSP CONTRACTOR with copies to the board. B. CONTRACTOR’s Board of Directors, if applicable.  Require a plan of correction Corrective Action Plan and specified status reports that become a contract performance objective (Attachment C 7.0.2). C. If previous items above have not worked, impose objective.  Place CONTRACTOR on provisional contract status until a direct dollar penalty Corrective Action Plan is accepted by CMHSP and make it CONTRACTOR is able to successfully demonstrate its compliance. Provisional status is a non- matchable CMHSP administrative expense means of sanctioning CONTRACTOR and reduce earned savings by may result in the same dollar amount. D. For sanctions related to reporting compliance issuestemporary suspension of referrals, the MDHHS may delay 10% removal of scheduled consumers currently served by CONTRACTOR, or other sanctions up to termination of this Contract.  The CMHSP reserves the right to withhold payment amount to the CMHSP until after full compliance is achieved. The MDHHS may add time If the above mentioned actions are not successful in achieving full compliance, CMHSP reserves the right to initiate contract termination according to the delay on subsequent uses Termination Article of this provision. (Note: The MDHHS may apply this sanction in a subsequent payment cycle and will give prior written notice to the CMHSP). E. Initiate contract terminationContract. The implementation of any of these actions does not require a contract amendment to implement. The amendment; the sanction notice to the CMHSP CONTRACTOR is sufficient authority according to this provision. The use of remedies and sanctions will typically follow a progressive approach, but the MDHHS CMHSP reserves the right to deviate from the progression as needed to seek correction of serious, serious or repeatedrepeated breaches, or patterns of substantial non-compliance or performance problems. The CMHSP can utilize the dispute resolution provision of the contract to dispute a contract compliance notice issued by the MDHHS. The following are examples of compliance or performance problems for which remedial actions actions, including sanctions sanctions, can be applied to address repeated, repeated or substantial breaches, breaches or reflect a pattern of non-compliance or substantial poor performanceperformance problems. This listing is not meant to be exhaustive, but only representative. A. .  Reporting timeliness, quality and accuracy. B. .  Performance Indicator Standards. C. standards.  Repeated Site-Review site review non-compliance (repeated failure on the same item). X. Xxxxxxx .  Failure to complete or achieve contractual performance objectives. E. .  Repeated failure to honor appeals/grievance assurances.  Substantial or repeated health and/or safety violations.  Substantial inappropriate service denial of services or requests for service required by under this contract Contract, or substantial services not corresponding to condition. Substantial can be mean a pattern or pattern, large volume or small volume, but with a severe impact.  Inappropriate or inconclusive documentation of services for which a claim has been submitted. F. Repeated failure to honor appeals/grievance assurances. Substantial or repeated health and/or safety violations.

CONTRACT REMEDIES AND SANCTIONS. The state will utilize a variety of means to assure compliance with contract requirements. The state will pursue remedial actions and possibly sanctions as needed to resolve outstanding contract violations and performance concerns. The application of remedies and sanctions shall be a matter of public record. The MDHHS MDCH may utilize actions in the following order: A. Notice of the contract violation and conditions will be issued to the CMHSP with copies to the board. B. Require a plan of correction and specified status reports that become a contract performance objective (Attachment C 7.0.2). C. If previous items above have not worked, impose a direct dollar penalty and make it a non- non-matchable CMHSP administrative expense and reduce earned savings by the same dollar amount. D. For sanctions related to reporting compliance issues, the MDHHS MDCH may delay 10% of scheduled payment amount to the CMHSP until after compliance is achieved. The MDHHS MDCH may add time to the delay on subsequent uses of this provision. (Note: The MDHHS MDCH may apply this sanction in a subsequent payment cycle and will give prior written notice to the CMHSP). E. Initiate contract termination. The implementation of any of these actions does not require a contract amendment to implement. The sanction notice to the CMHSP is sufficient authority according to this provision. The use of remedies and sanctions will typically follow a progressive approach, but the MDHHS MDCH reserves the right to deviate from the progression as needed to seek correction of serious, or repeated, or patterns of substantial non-compliance or performance problems. The CMHSP can utilize the dispute resolution provision of the contract to dispute a contract compliance notice issued by the MDHHSMDCH. The following are examples of compliance or performance problems for which remedial actions including sanctions can be applied to address repeated, or substantial breaches, or reflect a pattern of non-compliance or substantial poor performance. This listing is not meant to be exhaustive, but only representative. A. Reporting timeliness, quality and accuracy. B. Performance Indicator Standards. C. Repeated Site-Review non-compliance (repeated failure on same item). X. Xxxxxxx D. Failure to complete or achieve contractual performance objectives. E. Substantial inappropriate service denial of services required by this contract or substantial services not corresponding to condition. Substantial can be a pattern or large volume or small volume, but severe impact. F. Repeated failure to honor appeals/grievance assurances. Substantial or repeated health and/or safety violations.

CONTRACT REMEDIES AND SANCTIONS. The state will utilize a variety of means to assure compliance with contract requirementsrequirements and with the provisions of Section 330.1232b of Michigan's Mental Health Code, regarding Specialty Prepaid Inpatient Health Plans. The state will pursue remedial actions and possibly sanctions as needed to resolve outstanding contract violations and performance concerns. The application of remedies and sanctions shall be a matter of public record. If action is taken under the provisions of Section 330.1232b of the Mental Health Code, an opportunity for a hearing will be afforded the PIHP, consistent with the provisions of Section 330.1232b.(6). The MDHHS may MDCH will utilize actions in the following order: A. Notice of the contract violation and conditions will be issued to the CMHSP PIHP with copies to the boardBoard. B. Require a plan of correction and specified status reports that become becomes a contract performance objective (Attachment C 7.0.2)objective. C. If previous items above have not worked, impose a direct dollar penalty and make it a non- non-matchable CMHSP PIHP administrative expense and reduce earned savings from that fiscal year by the same dollar amount. D. For sanctions related to reporting compliance issues, the MDHHS MDCH may delay 10up to 25% of scheduled payment amount to the CMHSP PIHP until after compliance is achieved. The MDHHS MDCH may add time to the delay on subsequent uses of this provision. (Note: The MDHHS MDCH may apply this sanction in a subsequent payment cycle and will give prior written notice to the CMHSPPIHP). E. Initiate contract termination. The implementation of any of these actions does not require a contract amendment to implement. The sanction notice to the CMHSP PIHP is sufficient authority according to this provision. The use of remedies and sanctions will typically follow a progressive approach, but the MDHHS MDCH reserves the right to deviate from the progression as needed to seek correction of serious, or repeated, or patterns of substantial non-compliance or performance problems. The CMHSP PIHP can utilize the dispute resolution provision of the contract to dispute a contract compliance notice issued by the MDHHSMDCH. The following are examples of compliance or performance problems for which remedial actions including sanctions can be applied to address repeated, or substantial breaches, or reflect a pattern of non-compliance or substantial poor performance. This listing is not meant to be exhaustive, but only representative. A. Reporting timeliness, quality and accuracy. B. Performance Indicator Standards. C. Repeated Site-Review non-compliance (repeated failure on same item). X. Xxxxxxx D. Failure to complete or achieve contractual performance objectives. E. Substantial inappropriate service denial of services required by this contract or substantial services not corresponding to condition. Substantial can be a pattern or pattern, large volume or small volume, volume but severe impact. F. Repeated failure to honor appeals/grievance assurances. G. Substantial or repeated health and/or safety violations.

CONTRACT REMEDIES AND SANCTIONS. The state will utilize a variety of means to assure compliance with contract requirements. The state will pursue remedial actions and possibly sanctions as needed to resolve outstanding contract violations and performance concerns. The application of remedies and sanctions shall be a matter of public record. The MDHHS may utilize actions in the following order: A. Notice of the contract violation and conditions will be issued to the CMHSP with copies to the board. B. Require a plan of correction and specified status reports that become a contract performance objective (Attachment C 7.0.2). C. If previous items above have not worked, impose a direct dollar penalty and make it a non- non-matchable CMHSP administrative expense and reduce earned savings by the same dollar amount. D. For sanctions related to reporting compliance issues, the MDHHS may delay 10% of scheduled payment amount to the CMHSP until after compliance is achieved. The MDHHS may add time to the delay on subsequent uses of this provision. (Note: The MDHHS may apply this sanction in a subsequent payment cycle and will give prior written notice to the CMHSP). E. Initiate contract termination. The implementation of any of these actions does not require a contract amendment to implement. The sanction notice to the CMHSP is sufficient authority according to this provision. The use of remedies and sanctions will typically follow a progressive approach, but the MDHHS reserves the right to deviate from the progression as needed to seek correction of serious, or repeated, or patterns of substantial non-compliance or performance problems. The CMHSP can utilize the dispute resolution provision of the contract to dispute a contract compliance notice issued by the MDHHS. The following are examples of compliance or performance problems for which remedial actions including sanctions can be applied to address repeated, or substantial breaches, or reflect a pattern of non-compliance or substantial poor performance. This listing is not meant to be exhaustive, but only representative. A. Reporting timeliness, quality and accuracy. B. Performance Indicator Standards. C. Repeated Site-Review non-compliance (repeated failure on same item). X. Xxxxxxx D. Failure to complete or achieve contractual performance objectives. E. Substantial inappropriate service denial of services required by this contract or substantial services not corresponding to condition. Substantial can be a pattern or large volume or small volume, but severe impact. F. Repeated failure to honor appeals/grievance assurances. Substantial or repeated health and/or safety violations.