A full investigation must continue until—

1. (a) Appropriate legal action is initiated;
2. (b) The case is closed or dropped because of insufficient evidence to support the allegations of fraud or abuse; or

3. (c) The matter is resolved between the agency and the provider or beneficiary. This resolution may include but is not limited to—

   1. (1) Sending a warning letter to the provider or beneficiary, giving notice that continuation of the activity in question will result in further action;
   2. (2) Suspending or terminating the provider from participation in the Medicaid program;
   3. (3) Seeking recovery of payments made to the provider; or
   4. (4) Imposing other sanctions provided under the State plan.

[43 FR 45262, Sept. 29, 1978, as amended at 48 FR 3756, Jan. 27, 1983]