Texas Administrative Code
Title 26 - HEALTH AND HUMAN SERVICES
Part 1 - HEALTH AND HUMAN SERVICES COMMISSION
Chapter 52 - CONTRACTING FOR COMMUNITY SERVICES
Subchapter E - ENFORCEMENT BY HHSC, TERMINATION BY CONTRACTOR, AND NO OFFER OF STANDARD CONTRACT BY HHSC
Division 4 - SANCTIONS
Section 52.315 - Termination of Contract by HHSC
Universal Citation: 26 TX Admin Code ยง 52.315
Current through Reg. 49, No. 38; September 20, 2024
(a) HHSC may propose to terminate a contract:
(1) without
cause by giving at least 60 days written notice to the contractor as provided
by the contract; or
(2) for good
cause as determined by HHSC, including if:
(A) the contractor has not provided any
services under the contract during a period of 12 consecutive months;
(B) the contractor has not complied with the
terms of the contract, including:
(i) the
contractor's overall compliance score from a contract monitoring is less than
90 percent, as described in §
49.411(e)
of this chapter (relating to Contract and Fiscal Monitoring);
(ii) the contractor has not submitted or
complied with a corrective action plan as described in §
49.522(d)
of this subchapter (relating to Corrective Action Plan);
(iii) the contractor has not submitted or
complied with an immediate protection plan as described in §
49.511(d)
of this subchapter (relating to Immediate Protection and Immediate Protection
Plan); or
(iv) DADS or HHSC has
imposed repeated actions or sanctions against the contractor that, when
considered cumulatively, constitute significant non-compliance with the
contract;
(C) the
contractor undergoes a change of ownership or change of legal entity and the
requirements in §49.210 (a)(1) - (4) of this chapter (relating to
Contractor Change of Ownership or Legal Entity) are not met, as described in
§
49.210(c)(1)
of this chapter;
(D) the
contractor's application packet described in §
49.203(a)(3)
of this chapter (relating to Provisional Contract Application Process):
(i) contained incorrect information;
or
(ii) contains information that
has become incorrect and the contractor has not notified HHSC in accordance
with §49.302(i) - (q) of this chapter (relating to General
Requirements);
(E) the
contractor or a controlling person of the contractor is under a period of
exclusion in accordance with §§1128, 1128A, 1136, 1156, or 1842(j)(2)
of the Social Security Act;
(F) the
contractor or a controlling person of the contractor is ineligible to contract
with HHSC in accordance with §
49.206
of this chapter (relating to Ineligibility Due to Criminal History);
(G) the contractor or a controlling person of
the contractor is prohibited from contracting with HHSC in accordance with
Chapter 79, Subchapter S of this title (relating to Contracting
Ethics);
(H) the contractor is
required to register with the Texas Secretary of State and contractor's status
with the Texas Secretary of State is not "in existence";
(I) the contractor is required to pay Texas
franchise tax and the contractor's right to transact business status with the
Texas Comptroller of Public Accounts is not "active";
(J) HHSC or another governmental entity
proposed or imposed a penalty, revocation, denial, termination, or suspension
against a license, certification, or registration held by the
contractor;
(K) the contractor no
longer has a license, certification, accreditation or other document required
by §
49.302(a)
of this chapter;
(L) the contractor
or a controlling person of the contractor is listed on:
(i) the HHSC employee misconduct registry as
unemployable;
(ii) the HHSC nurse
aide registry as revoked or suspended;
(iii) the United States System for Award
Management maintained by the General Services Administration;
(iv) the LEIE maintained by the United States
Department of Health and Human Services, Office of Inspector General;
(v) the LEIE maintained by the HHSC Office of
Inspector General;
(vi) the
Debarred Vendor List maintained by the Texas Comptroller of Public Accounts and
the period of debarment has not expired; or
(vii) the HHS list of exclusions;
(M) the contractor or a
controlling person of the contractor has been confirmed by DFPS or HHSC as
having committed abuse, neglect, or exploitation;
(N) HHSC proposed or imposed an action or
sanction against:
(i) another contract of the
contractor or a controlling person of the contractor; or
(ii) a contract of a person for whom the
contractor or a controlling person of the contractor was a controlling
person;
(O) a
governmental entity other than HHSC or a managed care organization contracting
with a governmental entity proposed or imposed an action or sanction against:
(i) a contractual agreement of the contractor
or a controlling person of the contractor; or
(ii) a contractual agreement of a person for
whom the contractor or a controlling person of the contractor was a controlling
person;
(P) the
contractor or a controlling person of the contractor terminated a contractual
agreement with a governmental entity in a federal health care program, as
defined in §1128B(f) of the Social Security Act, while an adverse action
or sanction was proposed or in effect;
(Q) the contractor or a controlling person of
the contractor terminated another contract while an action or sanction was
proposed or in effect;
(R) the
contractor or a controlling person of the contractor has an unresolved
financial liability with HHSC or another governmental entity;
(S) HHSC denies or terminates certification
of a contractor that has a contract for the HCS or TxHmL Program, in accordance
with § 9.183 of this title (relating to Program Provider Compliance and
Corrective Action) or § 9.587 of this title (relating to Program Provider
Compliance and Corrective Action); or
(T) for a contractor that has a contract for
Title XIX DAHS, Title XX AFC, RC, or DAHS, the contractor does not have a legal
right to occupy the facility under the contract.
(b) If HHSC proposes to terminate a contract:
(1) in accordance with subsection (a)(1) of
this section, HHSC notifies the contractor of the proposed termination in
writing at least 60 days before the effective date of termination; or
(2) in accordance with subsection (a)(2) of
this section, HHSC notifies the contractor of the proposed termination in
writing, which may be less than 60 days before the effective date of
termination.
(c) If HHSC proposes to terminate a contract, HHSC notifies individuals receiving services from the contractor and the individual's LARs that:
(1) HHSC has proposed to terminate the
contract and has placed the contractor's payments on a vendor hold;
and
(2) an individual or LAR may
choose to receive services under a contract listed on the choice list, subject
to program-specific requirements.
(d) HHSC terminates a contract on the date given in HHSC's notice of proposed termination if:
(1) the contractor does not appeal the
proposed contract termination; or
(2) the contractor appeals the proposed
contract termination and the final decision from the administrative hearing is
favorable to HHSC.
(e) HHSC does not pay a contractor for services provided after the effective date of contract termination.
(f) If HHSC terminates a contract, HHSC notifies the contractor and any controlling person of the contractor, in writing, of the application denial period set in accordance with § 49.702(c) or (d) of this chapter (relating to Application Denial Period).
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