Common use of Liquidated Damages for Failure to Meet Contract Requirements Clause in Contracts

Liquidated Damages for Failure to Meet Contract Requirements. It is agreed by the Division of Medicaid and the Contractor that in the event of the Contractor’s failure to meet the requirements provided in this Contract and/or all documents incorporated herein, damage will be sustained by the Division and the actual damages which will be sustained by event of and by reason of such failure are uncertain, and extremely difficult and impractical to ascertain and determine. The parties therefore agree that the Contractor will pay the Division liquidated damages in the fixed amounts as stated below; provided however, that if it is finally determined that the Contractor would have been able to meet the Contract requirements listed below but for the Division’s failure to perform as provided in this Contract, the Contractor shall not be liable for damages resulting directly therefrom. The Division may impose liquidated damages upon the Contractor when it fails to timely and accurately submit any reports under this Contract. (a) The report must contain 100 percent of the Contractor’s data; (b) 99% of the required items for the report must be completed; and (c) 99.5% of the data for the report must be accurate as determined by edit specifications/review guidelines set forth by the Division. Liquidated damages for late reports or deliverables shall begin on the first day the report is late. Liquidated damages for incorrect reports or deficient deliverables shall begin on the sixteenth (16th) day after the date on the written notice provided by the Division to the Contractor that the report remains incorrect or the deliverables remain deficient. Failure to complete corrective action as described in Section 12.2 above, the Contractor shall pay liquidated damages in the amount of one thousand five hundred dollars ($1,500.00) per calendar day for each day the corrective action is not completed in accordance with the timeline established in the Corrective Action Plan. Any liquidated damages assessed by the Division shall be due and payable to the Division within thirty (30) calendar days after the Contractor’s receipt of their notice of assessment. If payment is not made by the due date, said liquidated damages shall be withheld from future capitation payments by the Division without further notice. The collection of liquidated damages by the Division shall be made without regard to any appeal rights the Contractor may have pursuant to this contract. However, in the event an appeal by the Contractor results in a decision in favor of the Contractor, any such funds withheld by the Division will be returned to the Contractor. Whenever liquidated damages for a single occurrence exceed two thousand five hundred dollars ($2,500.00), Contractor staff will meet with Division staff to discuss the causes of the occurrence and to negotiate a reasonable plan for corrective action. Once a corrective action plan is agreed upon by both parties, collection of liquidated damages during the agreed upon corrective action period will be suspended. The corrective action plan must include a date certain for correction of the problems that led to the occurrence. Should that date be missed by the Contractor, the original schedule of damages will be reinstated, including collection of damages for the corrective action period, and liquidated damages will continue until satisfactory correction of the occurrence, as determined by the Division, has been made.

Liquidated Damages for Failure to Meet Contract Requirements. It is agreed by the Division of Medicaid SCDHHS and the Contractor that in the event of the Contractor’s 's failure to meet the requirements provided in this Contract and/or all documents incorporated herein, damage will be sustained by the Division and the SCDHHS. The actual damages which SCDHHS will be sustained by sustain in the event of and by reason of such failure are uncertain, and extremely difficult and impractical to ascertain and determine. The parties therefore agree that the Contractor will shall pay the Division SCDHHS liquidated damages in the fixed amounts amount as stated below; provided however, that if it is finally determined that the Contractor would have been able to meet the Contract requirements listed below but for the Division’s SCDHHS' failure to perform as provided in this Contract, the Contractor shall not be liable for damages resulting directly therefromthere from. The Division SCDHHS may impose liquidated damages upon the Contractor when it fails to timely and accurately submit any reports required under this Contract.Contract or the Policy and Procedure Guide. For each day that a deliverable is late, incorrect, or deficient, the Contractor shall be liable to SCDHHS for liquidated damages in the amount of One Thousand Five Hundred Dollars ($1,500.00) per calendar day per report, encounter data submissions or other deliverable. With the exception of encounter data submissions, XXXXXX shall utilize the following guidelines to determine whether a report is correct and complete: (a1) The report must contain 100 percent 100% of the Contractor’s data; (b2) 99% of the required items for the report must be completed; and (c3) 99.5% of the data for the report must be accurate as determined by edit specifications/review guidelines set forth by the DivisionSCDHHS. Liquidated damages for late reports or deliverables shall begin on the first day the report is late. Liquidated damages for incorrect reports or deficient deliverables shall begin on the sixteenth (16th) day after the date on the written notice provided by the Division SCDHHS to the Contractor that the report remains incorrect or the deliverables remain deficient. For the purposes of determining liquidated damages in accordance with this section, reports or deliverables are due in accordance with the following schedule: Deliverables Date Agreed Upon Daily Reports Within two (2) business days Weekly Reports Wednesday of the following week Monthly Reports 15th of the following month Quarterly Reports 30th of the following month (non-encounter reports) Annual Reports Ninety (90) calendar days after the end of the year On Request/Additional Reports Within three (3) business days from the date of request unless otherwise specified by XXXXXX Encounter data – initial submission Twenty-five (25) calendar days after the end of the month in which it was paid Encounter data – 100% accurate Ninety (90) calendar days after Submission the date of initial submission Employment of licensed personnel $500.00 per calendar day for each day that personnel are not licensed as required by applicable state and federal laws and/or regulations. (See also §3.1.2 of this Contract) Failure to complete corrective $1500.00 per calendar day for action as described in Section 12.2 above, the Contractor shall pay liquidated damages in the amount of one thousand five hundred dollars ($1,500.00) per calendar day for §§11 and 13.7 each day the corrective action is not completed in accordance with the timeline established in the Corrective Action Plan. Any Plan of Correction Late, incorrect or deficient reports, $1500.00 per calendar day including HEDIS reports, and per file or report Encounter data initial submission, Encounter Data – failure to meet $1500.00 per calendar day 100% accurate submission deadline as set forth in §10.2 It is further agreed by XXXXXX and the Contractor that any liquidated damages assessed by the Division SCDHHS shall be due and payable to the Division SCDHHS within thirty (30) calendar days after the Contractor’s receipt of their notice of assessment. If payment is not made by the due date, said liquidated damages shall be withheld from future capitation payments by the Division SCDHHS without further notice. The It is agreed by XXXXXX and the Contractor that the collection of liquidated damages by the Division SCDHHS shall be made without regard to any appeal rights the Contractor may have pursuant to this contractContract. However, in the event an appeal by the Contractor results in a decision in favor of the Contractor, any such funds withheld by the Division XXXXXX will be returned to the Contractor. Whenever liquidated damages for a single occurrence exceed two thousand five hundred dollars ($2,500.00), Contractor the Contractor’s staff will meet with Division SCDHHS staff to discuss the causes of the occurrence and to negotiate a reasonable plan for corrective action. Once a corrective action plan is agreed upon by both parties, collection of liquidated damages during the agreed upon corrective action period will be suspended. The corrective action plan must include a date certain for correction of the problems that led to the occurrence. Should that date be missed by the Contractor, the original schedule of damages will be reinstated, including collection of damages for the corrective action period, and liquidated damages will continue until satisfactory correction of the occurrence, occurrence as determined by the Division, XXXXXX has been made. Whenever SCDHHS reasonably determines, based on identified facts and documentation, that the Contractor is failing to meet material obligations and performance standards described in this Contract, it may suspend the Contractor's right to enroll new members and impose any other sanctions in accordance with §13.5. SCDHHS, when exercising this option, shall notify the Contractor in writing of its intent to suspend new enrollment. The suspension period may be for any length of time specified by SCDHHS, or may be indefinite. XXXXXX also may notify members of the Contractor’s non-performance and permit these members to transfer to another health plan following implementation of the suspension.

Liquidated Damages for Failure to Meet Contract Requirements. It is agreed by the Division of Medicaid The Department and the Contractor agree that in the event of the Contractor’s 's failure to meet the requirements provided in this Contract and/or all documents incorporated herein, damage will be sustained by the Division Department and the actual damages which the Department will be sustained by sustain in the event of and by reason of such failure are uncertain, and extremely difficult and impractical to ascertain and determine. The parties therefore agree that the Contractor will shall pay the Division Department liquidated damages in the fixed amounts as stated below; provided however, that if it is finally determined that the Contractor would have been able to meet the Contract requirements listed below but for the Division’s Department's failure to perform as provided in this Contract, the Contractor shall not be liable for damages resulting directly therefrom. The Division Department may impose liquidated damages upon the Contractor when it fails to timely and accurately submit any reports whether it is outlined or required under this Contract, the MCO Policy and Procedure Guide and/or Companion Guide or a special report request by the Department. (a1) The report must contain 100 percent 100% of the Contractor’s data; (b2) 99% of the required items for the report must be completed; and (c3) 99.5% of the data for the report must be accurate as determined by edit specifications/review guidelines set forth by the DivisionDepartment. Liquidated damages for late reports or deliverables shall begin on the first day after the report is lateDue Date outlined herein. Liquidated damages for incorrect reports or deficient deliverables shall begin on the sixteenth (16th) day after the date on the written notice provided by the Division Department to the Contractor that the report remains incorrect or the deliverables remain deficient. For the purposes of determining liquidated damages in accordance with this Section, reports or deliverables are due in accordance with the schedule below. All reports are due by noon (12 ET) on the date it is due. Should any Date Due be a weekend day or holiday, the Date Due shall be the Department’s business day prior to weekend or holiday. Deliverables Date Due Daily Reports Within two (2) business days. Weekly Reports Wednesday of the following week. Monthly Reports No later than the 15th of the following month Quarterly Reports 30th of the following month. (non-encounter reports) Annual Reports Ninety (90) calendar days after the end of the year. On Request/Additional Reports Within three (3) business days from the date of request unless otherwise specified by the Department. Encounter data – initial submission (Weekly)Twenty-five(25) calendar days after the end of the month in which it was paid Encounter data – 100% accurate Ninety (90) calendar days after Submission the date of initial submission County Network Submissions Three (3) business days after request Special Report Three to four calendar days after request Other liquidated damages related to certain provisions of this contract shall be as outlined below. Contract Requirement Liquidated Damages Employment of licensed personnel $500.00 per calendar day for each day that personnel are not licensed as required by applicable state and federal laws and/or regulations. (See also §3.1.2 of this Contract). Failure to complete corrective $1500.00 per calendar day for action as described in Section 12.2 above, the Contractor shall pay liquidated damages in the amount of one thousand five hundred dollars ($1,500.00) per calendar day for §§11 and 13.7 each day the corrective action is not completed in accordance with the timeline established in the Corrective Action PlanPlan of Correction. Any Late, incorrect or deficient reports, $1500.00 per calendar day Including HEDIS reports, per file or report Encounter data initial submission, Network County Submission, CRCS Reports, FQHC/RHC Wrap report Encounter Data – failure to meet $1500.00 per calendar day 100% accurate submission deadline as set forth in §10.4 Inadequate Networks as determined under Section 4 $5,000 per calendar day It is further agreed by the Department and the Contractor that any liquidated damages assessed by the Division Department shall be due and payable to the Division Department within thirty (30) calendar days after the Contractor’s receipt of their notice of assessment. If payment is not made by the due date, said liquidated damages shall be withheld from future capitation payments Capitation Payments by the Division Department without further notice. The It is agreed by the Department and the Contractor that the collection of liquidated damages by the Division Department shall be made without regard to any appeal rights the Contractor may have pursuant to this contractContract. However, in the event an appeal by the Contractor results in a decision in favor of the Contractor, any such funds withheld by the Division Department will be returned to the ContractorContractor less any cost incurred by the Department. Whenever liquidated damages for a single occurrence exceed two thousand five hundred dollars ($2,500.00), Contractor the Contractor’s staff will meet with Division the Department’s staff to discuss the causes of the occurrence and to negotiate a reasonable plan for corrective action. Once a corrective action plan is agreed upon by both parties, collection of liquidated damages during the agreed upon corrective action period will be suspended. The corrective action plan must include a date certain for correction of the problems that led to the occurrenceoccurrence along with interim milestones to be achieved, the criteria for determining that a milestone has been achieved, reporting objectives and schedule, staffing commitment and sufficiently detailed description for the Department to determine the appropriateness and effectiveness of the plan of correction. Should Issues that date be missed are not substantially corrected by the Contractor, dates agreed upon in the plan of correction will result in the original schedule of damages will be reinstated, including collection of damages for the corrective action period, and liquidated damages will continue until satisfactory correction of the occurrence, as determined by the DivisionDepartment, has been made. Whenever the Department determines, based on identified facts and documentation, that the Contractor is failing to meet material obligations and performance standards described in this Contract, it may suspend the Contractor's right to enroll new Medicaid MCO Members and impose any other sanctions and/or liquidated damages in accordance with §13.5. The Department, when exercising this option, shall notify the Contractor in writing of its intent to suspend new enrollment. The suspension period may be for any length of time specified by the Department, or may be indefinite. The Department also may notify Medicaid MCO Members of the Contractor’s non-performance and permit these Medicaid MCO Members to transfer to another health plan following the implementation of suspension.

Liquidated Damages for Failure to Meet Contract Requirements. It is agreed by the Division of Medicaid SCDHHS and the Contractor that in the event of the Contractor’s 's failure to meet the requirements provided in this Contract and/or all documents incorporated herein, damage will be sustained by the Division and the SCDHHS. The actual damages which SCDHHS will be sustained by sustain in the event of and by reason of such failure are uncertain, and extremely difficult and impractical to ascertain and determine. The parties therefore agree that the Contractor will shall pay the Division SCDHHS liquidated damages in the fixed amounts amount as stated below; provided however, that if it is finally determined that the Contractor would have been able to meet the Contract requirements listed below but for the Division’s SCDHHS' failure to perform as provided in this Contract, the Contractor shall not be liable for damages resulting directly therefromthere from. The Division SCDHHS may impose liquidated damages upon the Contractor when it fails to timely and accurately submit any reports required under this Contract.Contract or the Policy and Procedure Guide. For each day that a deliverable is late, incorrect, or deficient, the Contractor shall be liable to SCDHHS for liquidated damages in the amount of One Thousand Five Hundred Dollars ($1,500.00) per calendar day, per report, encounter data submissions or other deliverable. With the exception of encounter data submissions, SCDHHS shall utilize the following guidelines to determine whether a report is correct and complete: (a1) The report must contain 100 percent 100% of the Contractor’s data; (b2) 99% of the required items for the report must be completed; and (c3) 99.5% of the data for the report must be accurate as determined by edit specifications/review guidelines set forth by the DivisionSCDHHS. Liquidated damages for late reports or deliverables shall begin on the first day the report is late. Liquidated damages for incorrect reports or deficient deliverables shall begin on the sixteenth (16th) day after the date on the written notice is provided by the Division from SCDHHS to the Contractor that the report remains incorrect or the deliverables remain deficient. For the purposes of determining liquidated damages in accordance with this section, reports or deliverables are due in accordance with the following schedule: Deliverables Date Agreed Upon Daily Reports Within two (2) working days. Weekly Reports Wednesday of the following week. Monthly Reports 15th of the following month. Quarterly Reports 30th of the following month. (non-encounter reports) Annual Reports Ninety (90) calendar days after the end of the year. On Request/Additional Reports Within three (3) working days from the date of request unless otherwise specified by SCDHHS. Encounter data – initial submission Twenty-five (25) calendar days after the end of the month in which it was paid Encounter data – 100% accurate Ninety (90) calendar days after Submission the date of initial submission Employment of licensed personnel $500.00 per calendar day for each day that personnel are not licensed as required by applicable state and federal laws and/or regulations. (See also §3.1.2 of this Contract). Failure to complete corrective $1500.00 per calendar day for action as described in Section 12.2 above, the Contractor shall pay liquidated damages in the amount of one thousand five hundred dollars ($1,500.00) per calendar day for §§11 and 13.7 each day the corrective action is not completed in accordance with the timeline established in the Corrective Action PlanPlan of Correction. Any Late, incorrect or deficient reports, $1500.00 per calendar day Including HEDIS reports, and per file or report Encounter data initial submission, Encounter Data – failure to meet $1500.00 per calendar day 100% accurate submission deadline as set forth in §10.2 It is further agreed by SCDHHS and the Contractor that any liquidated damages assessed by the Division SCDHHS shall be due and payable to the Division SCDHHS within thirty (30) calendar days after the Contractor’s receipt of their the notice of assessmentdamages. If payment is not made by the due date, said liquidated damages shall be withheld from future capitation payments by the Division SCDHHS without further notice. The It is agreed by SCDHHS and the Contractor that the collection of liquidated damages by the Division SCDHHS shall be made without regard to any appeal rights the Contractor may have pursuant to this contractContract. However, in the event an appeal by the Contractor results in a decision in favor of the Contractor, any such funds withheld by the Division SCDHHS will be returned to the Contractor. Whenever liquidated damages for a single occurrence exceed two thousand five hundred dollars ($2,500.00), Contractor the Contractor’s staff will meet with Division SCDHHS staff to discuss the causes of for the occurrence and to negotiate a reasonable plan for corrective actionaction of the occurrence. Once a corrective action plan is agreed upon by both parties, collection of liquidated damages during the agreed upon corrective action period will be suspended. The corrective action plan must include a date certain for the correction of the problems that led to the occurrence. Should that date for correction be missed by the Contractor, the original schedule of damages will be reinstated, including collection of damages for the corrective action period, and liquidated damages will continue until satisfactory correction of the occurrence, as determined by SCDHHS of the Division, occurrence has been made. Whenever SCDHHS reasonably determines, based on identified facts and documentation, that the Contractor is failing to meet material obligations and performance standards described in this Contract, it may suspend the Contractor's right to enroll new members and impose any other sanctions in accordance with §13.5. SCDHHS, when exercising this option, shall notify the Contractor in writing of its intent to suspend new enrollment. The suspension period may be for any length of time specified by SCDHHS, or may be indefinite. SCDHHS also may notify members of the Contractor’s non-performance and permit these members to transfer to another health plan following implementation of the suspension.