(a)

1. (1) By agreeing to participate in the long-term care program, providers must abide by this part.

2. (2) Participation in the program may be terminated should the provider:

   1. (A) Fail to keep and maintain auditable records;
   2. (B) Fail to disclose or make available to the Department of Human Services, or its authorized agent, records concerning the operation of the facility, including home office records, if applicable;
   3. (C) Breach the terms of the Medicaid provider agreement or fail to comply with the terms of the provider’s certifications set out on the Medicaid claim form;
   4. (D) Charge or attempt to charge Medicaid recipients for Medicaid covered services over and above that paid by the department;
   5. (E) Rebate or accept a fee or portion of a fee or charge for a Medicaid resident referral;
   6. (F) Present, or cause to be presented, false information; and
   7. (G) Submit, or cause to be submitted, false information for the purpose of obtaining greater compensation to which the provider is legally entitled.
3. (3) In addition to the above listing of causes for termination, state or federal laws or rules may create requirements, the violation of which may cause adverse action.

(b)

1. (1) Arkansas Code § 20-10-205 classifies violations relating to the administration of long-term care facilities.
2. (2) Administrative and reporting requirements are classified as Class C and Class D violations.

3. (3) A description of each follows:

   1. (A)

(d) (d) Submission on the facility’s cost report as allowable, costs determined by the department audit staff to have been claimed under circumstances identical in all material respects to costs that have been disallowed by final desk review or audit. A desk review or audit is final if no timely appeal has been filed or, if a timely appeal has been filed, there is a final appeal decision disallowing the cost. An appeal decision is final if no additional appeal is provided for by law, or if the time to file an additional appeal has expired. Any facility submitting as allowable costs, costs previously disallowed by a desk review or audit decision that is not final must identify each such cost and reference the pending appeal.

1. (ii) Class C violations are subject to a civil money penalty to be set by the Secretary of the Department of Human Services or his or her designee, in an amount not to exceed five hundred dollars ($500) for a single violation. A single erroneous administrative or reporting practice will be considered a single violation regardless of the number of resident records affected by the practice.

   1. (B)

      1. (i) Class D violations: failure to timely submit the cost report for long-term care facilities. Cost reports must be postmarked on or before the due date or the extended due date in order to avoid a penalty. The failure to timely submit a cost report shall be considered a separate Class D violation during any month or part thereof of noncompliance.
      2. (ii) Class D violations are subject to a civil money penalty to be set by the secretary or his or her designee, in an amount not to exceed two hundred fifty dollars ($250) for each violation.
      3. (iii) In addition to any civil money penalty which may be imposed, the Director of the Office of Long-Term Care is authorized after the first month of a Class D violation to withhold any further reimbursement to the long-term care facility until the cost report is received by the Office of Long-Term Care.
      4. (c)
2. (1) Any violation repeated within six (6) months subjects the facility to double civil money penalties up to a maximum of one thousand dollars ($1,000) per violation.

3. (2) Assessment of civil money penalties does not limit the right of the Office of Long-Term Care to take such other action as may be authorized by law or rule.

   1. (d) Providers violating this section may be referred to the office of the Attorney General.