100185.5
. (a) When a letter or order of denial of continued
enrollment or suspension of any type or duration, based upon fraud or
abuse, or a suspension of payments pursuant to Section 14107.11 of
the Welfare and Institutions Code, is issued by the department to a
provider, the director shall review the evidence supporting the
denial of continued enrollment, suspension, or suspension of
payments. If, in the opinion of the director, the evidence shows a
pattern or practice of fraud, abuse, or willful misrepresentation
that, if replicated in any other health care program administered by
the department, could cause either fiscal loss to the state or harm
to any participant, the director may deny continued enrollment,
suspend, or suspend payments to, the provider with respect to those
other health care programs. Any denial of continued enrollment,
suspension, or suspension of payments may be for an indefinite or
definite period of time, may be stayed for a period of time, and may
be with or without conditions or probation.
(b) The director may deny the application of an applicant or
provider to participate in any health care program administered by
the department, when, based upon fraud or abuse, the applicant or
provider has been denied continued enrollment in, or suspended from,
any health care program administered by the department, or has had
payments suspended in connection with the Medi-Cal program pursuant
to Section 14107.11 of the Welfare and Institutions Code by the
department, and remains ineligible to participate in the health care
program from which the applicant or provider was denied continued
enrollment, suspended, or had payments suspended.
(c) The director may deny any new or additional application of a
provider to participate in any health care program administered by
the department if utilization controls including, but not limited to,
prior authorization or special claims review pursuant to Sections
51159, 51455, and 51460 of Title 22 of the California Code of
Regulations have been imposed upon that provider by any health care
program administered by the department. Applications shall not be
denied based solely upon utilization controls imposed upon an entire
class or category of providers to which that provider belongs.
(d) Notwithstanding any other law, any provider or applicant who
has been denied continued enrollment in, or suspended from, or that
has had payments suspended in connection with, any health care
program administered by the department, or whose application to
participate in a health care program administered by the department
is denied, pursuant to this section, may appeal that action in
accordance with Section 14043.65 of the Welfare and Institutions
Code.
(e) For purposes of this section, the following definitions apply:
(1) "Abuse" has the same meaning as that term is defined in
Section 14043.1 of the Welfare and Institutions Code.
(2) "Administered by the department" means administered by the
State Department of Health Care Services or by its agents or
contractors on behalf of the State Department of Health Care
Services.
(3) "Applicant" means any person, individual, partnership, group,
association, corporation, institution, or entity, and the officers,
directors, owners, managing employees, or agents thereof, that
applies to the department for enrollment as a provider or
participation as a provider in a health care program administered by
the department.
(4) "Fraud" has the same meaning as that term is defined in
Section 14043.1 of the Welfare and Institutions Code.
(5) "Provider" means any person, individual, partnership, group,
association, corporation, institution, or entity, and the officers,
directors, owners, managing employees, or agents thereof, that
provides services, goods, supplies, or merchandise, directly or
indirectly, to a person enrolled in a health care program
administered by the department.
(6) "Payment suspension" means the suspension of payments in
accordance with Section 14107.11 of the Welfare and Institutions
Code.
(f) For purposes of this section, "suspension" includes, but is
not limited to, suspensions authorized under Article 1.3 (commencing
with Section 14043) or Article 3 (commencing with Section 14123) of
Chapter 7 of Part 3 of Division 9 of the Welfare and Institutions
Code.
(g) For purposes of this section, "health care program
administered by the department" includes, but is not limited to, the
Medi-Cal program.