The information in this section will govern cost reports for provider's fiscal years ending in calendar years 1995 and 1996. The Texas Department of Human Services (DHS) may delay or withhold vendor payment to a provider in order to investigate or correct financial or accounting irregularities or to obtain required documentation regarding facility costs.

1. (1) Circumstances which may result in vendor hold are:

   1. (A) failure to maintain records that support the information submitted on the cost report in a form which is in compliance with DHS's chart of accounts for long-term care providers;
   2. (B) failure to file an acceptable cost report by the cost report due date; or
   3. (C) failure to allow inspection of records necessary to verify information submitted to DHS on Medicaid cost reports within ten workdays following written notice from DHS.
2. (2) Vendor payments will be held until the circumstances resulting in vendor hold are corrected.
3. (3) A provider has the right to appeal a vendor hold as specified in 40 TAC §79.1602 (Right to a Hearing).

Source Note:The provisions of this §355.310 adopted to be effective April 1, 1996, 21 TexReg 1432; amended to be effective September 1, 1996, 21 TexReg 7861; duplicated effective September 1, 1997, as published in the Texas Register October 17, 1997, 22 TexReg 10311.