Contract Remedies and Sanctions Clause Samples
The "Contract Remedies and Sanctions" clause defines the actions and penalties available to a party if the other party breaches the contract. This clause typically outlines specific remedies such as the right to claim damages, demand specific performance, or terminate the agreement, and may also list sanctions like financial penalties or suspension of services. By clearly stating the consequences of non-compliance, this clause ensures that both parties understand the risks of breach and provides a structured process for resolving disputes, thereby promoting accountability and reducing uncertainty.
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Contract Remedies and Sanctions. The state will utilize a variety of means to assure compliance with contract requirements and with the provisions of Section 330, 1232(b) 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, 1232(b) of the Mental Health Code, an opportunity for a hearing will be afforded the PIHP, consistent with the provisions of Section 330, 1232(b)(6). The MDCH will utilize actions in the following order:
A. Notice of the contract violation and conditions will be issued to the PIHP with copies to the Board. B Require a plan of correction and specified status reports that becomes a contract performance objective.
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).
▇. ▇▇▇▇▇▇▇ 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 i...
Contract Remedies and Sanctions. The state will utilize a variety of means to assure compliance with contract requirements in keeping with the provisions of Section 330, 1232(b) of Michigan's Mental Health Code. 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 MDCH will utilize actions in the following order:
A. Notice of the contract violation and conditions will be issued to the PIHP with copies to the Board. B Require a plan of correction and specified status reports that becomes a contract performance objective.
Contract Remedies and Sanctions. 20.1 Following notice to Provider, BABHA may use a variety of means to ensure compliance with the terms and conditions of this Agreement including any of the following actions:
(a) Require a plan of correction as a condition to continuing this Agreement together with status reports;
(b) Assess sanctions, fines, and/or penalties in the form of reduced reimbursement payments. Such reduction in reimbursement payments will continue until compliance with the terms and conditions of this Agreement are achieved;
(c) In addition to the reduced reimbursement described above, BABHA may impose a direct dollar penalty and make it a non-matchable, non-recoverable Provider administrative expense and reduce earned savings from that fiscal year by the same dollar amount; or
(d) Terminate this Agreement.
20.2 The use of sanctions, fines and penalties will typically follow a progressive approach; however, BABHA may, in its sole discretion, impose one or more of the sanctions, fines or penalties set forth herein in any manner. In the event of the imposition of any sanction, fines and/or penalties, Provider shall not withhold any services to individual consumers that would otherwise be provided according to medical necessity criteria and best practice standards, consistent with 42 CFR 422.208.
20.3 For purposes of example only, the following is a non-exhaustive list of compliance or performance issues for which BABHA may take remedial action under this Agreement, including, without limitation sanctions, to address repeated or substantial breaches, or patterns of non-compliance or substantial poor performance:
(a) Reporting timeliness, quality and accuracy;
(b) Performance Indicator Standards;
(c) Repeated Site Review non-compliance (repeated failure on same item);
(d) Failure to complete or achieve contractual performance objectives;
(e) Substantial inappropriate denial of Services required under this Agreement or substantial Services not corresponding to condition. Substantial can be a pattern, large volume or small volume, but severe impact;
(f) Repeated failure to honor appeals/grievance assurances;
(g) Substantial or repeated health and/or safety violations; and/or
(h) Failure to adhere to training requirements and timelines for completion. (i) Failure to complete required documentation for each service provided.
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 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).
Contract Remedies and Sanctions. Commented [A134R133]: No recommendations Commented [A133]: Compliance/Contracts
Contract Remedies and Sanctions