Cal. Welf. & Inst. Code § 14107.5

(a) The department may, pursuant to regulations adopted pursuant to subdivision (b), rescind the privileges of a provider of durable medical equipment or incontinence supplies who fails to satisfy the requirements of this section to bill and receive payment for services provided under this chapter.
(b) The department shall adopt regulations to define the specific causes for which the authority of a Medi-Cal provider of durable medical equipment or incontinence supplies to bill and receive payment for services provided under this chapter may be rescinded for violation of this section.
(c) The department shall not rescind the authority of a Medi-Cal provider of durable medical equipment or incontinence supplies to bill and receive payment under this chapter without a prior hearing, unless any of the following conditions exist:
1. (1) The provider has failed to provide material information to the department pursuant to Section 14125.8.
2. (2) The provider has knowingly furnished false information on any application for provider enrollment.
3. (3) The provider has knowingly filed false claims for reimbursement under this chapter.