Common use of Corrective Action Plan (CAP Clause in Contracts

Corrective Action Plan (CAP. At its option, the Department may require the MCO to submit to the Department or its designee a written plan (the “Corrective Action Plan (CAP)”) to correct or resolve non-performance of the Contract, as determined by the Department. 1. The CAP must provide: a. A detailed explanation of the reasons for the MCO’s non-performance; b. The MCO’s assessment or analysis of the cause, if applicable; and c. A specific proposal to cure or resolve the non-performance. 2. The Department may require a CAP to provide: a. Accelerated monitoring that includes more frequent or more extensive monitoring by the Department or its agent, including accelerated monitoring of any area in which the compliance is not fully met; b. Additional, more detailed, financial, and/or programmatic reports to be submitted by the MCO; and c. Additional and/or more detailed financial and/or programmatic audits or other reviews of the MCO. 3. The CAP must be submitted by the deadline set forth in the Department’s request for a CAP. The CAP is subject to approval by the Department, which will not be unreasonably withheld. 4. The Department will notify the MCO in writing of its final disposition of the Department’s concerns. If the Department accepts the MCO’s proposed CAP, the Department may: a. Condition such approval on completion of tasks in the order or priority that the Department may reasonably prescribe; b. Disapprove portions of the MCO’s proposed CAP; c. Require additional or different corrective action(s), not limited to the actions described in paragraph (2); or d. Notwithstanding the submission and acceptance of a CAP, MCO remains responsible for achieving all written performance criteria. 5. The Department’s acceptance of a CAP under this Section will not: a. Excuse the MCO’s prior non-performance; b. Relieve the MCO of its duty to comply with performance standards; or c. Prohibit the Department from assessing additional Contract remedies or pursuing other appropriate remedies for continued non-performance. The Department retains authority to impose additional remedies under this Contract or state and federal statutes that address areas of non-performance. Nothing in this provision prevents the Department from exercising that authority.

Corrective Action Plan (CAP. At its option, the Department BMS may require the MCO to submit to the Department BMS or its designee a written plan (the “Corrective Action Plan (CAP)”) to correct or resolve non-performance of the Contract, as determined by the DepartmentBMS. 1. The CAP must provide: a. A detailed explanation of the reasons for the MCO’s non-performance; b. The MCO’s assessment or analysis of the cause, if applicable; and c. A specific proposal to cure or resolve the non-performance. 2. The Department BMS may require a CAP to provide: a. Accelerated monitoring that includes more frequent or more extensive monitoring by the Department BMS or its agent, including accelerated monitoring of any area in which the compliance is not fully met; b. Additional, more detailed, financial, and/or programmatic reports to be submitted by the MCO; and c. Additional and/or more detailed financial and/or programmatic audits or other reviews of the MCO. 3. The CAP must be submitted by the deadline set forth in the Department’s BMS’ request for a CAP. The CAP is subject to approval by the DepartmentBMS, which will not be unreasonably withheld. 4. The Department BMS will notify the MCO in writing of its final disposition of the Department’s BMS’ concerns. If the Department BMS accepts the MCO’s proposed CAP, the Department BMS may: a. Condition such approval on completion of tasks in the order or priority that the Department BMS may reasonably prescribe; b. Disapprove portions of the MCO’s proposed CAP; c. Require additional or different corrective action(s), not limited to the actions described in paragraph (2); or d. Notwithstanding the submission and acceptance of a CAP, MCO remains responsible for achieving all written performance criteria. 5. The Department’s BMS’ acceptance of a CAP under this Section will not: a. Excuse the MCO’s prior non-performance; b. Relieve the MCO of its duty to comply with performance standards; or c. Prohibit the Department BMS from assessing additional Contract remedies or pursuing other appropriate remedies for continued non-performance. The Department BMS retains authority to impose additional remedies under this Contract or state and federal statutes that address areas of non-performance. Nothing in this provision prevents the Department BMS from exercising that authority.