The department or any affected facility may elect binding arbitration as an alternative in any of the following disputes unless the United States Health Care Financing Administration requires that such dispute be resolved by the federal government.

1. (1) Disputes for which arbitration may be elected include:

   1. (A) renewal of a license under Health and Safety Code, §242.033;
   2. (B) suspension or revocation of a license under Health and Safety Code, §242.061;
   3. (C) assessment of a civil penalty under Health and Safety Code, §242.065;
   4. (D) assessment of a monetary penalty under Health and Safety Code, §242.066; or
   5. (E) assessment of a penalty as described by Human Resources Code, §32.021(k).

2. (2) Arbitration cannot be elected if the subject matter of the dispute is part of the basis for:

   1. (A) revocation, denial, or suspension of an institution's license;
   2. (B) issuance of a closing order under Health and Safety Code, §242.062; or
   3. (C) suspension of admissions under Health and Safety Code, §242.072.
3. (3) An affected facility may elect arbitration by filing a notice of election to arbitrate with the director of hearings no later than the tenth day after a notice of an administrative or judicial hearing relating to any of the above-listed disputes is received by the facility. A copy of this election shall be sent to the department's representative of record in the relevant action.
4. (4) The department may elect arbitration under this subchapter by filing the election with the director of hearings no later than the date that the facility may elect arbitration under paragraph (3) of this section. A copy of this election shall be sent to the facility's representative of record in the relevant action or to the owner or chief operating officer of the facility if no representative has made an appearance in the action.
5. (5) The date of receipt shall be the date affixed upon a notice of election by a date-stamp utilized by the hearings department of the department.

6. (6) The notice of election shall include a written statement that contains:

   1. (A) the nature of the action that is being submitted to arbitration, as listed in paragraph (1) of this section;
   2. (B) a brief description of the factual and/or legal controversy, including the amount in controversy, if any;
   3. (C) an estimate of the length of the hearing and the extensiveness of the record necessary to determine the matter;
   4. (D) the remedy sought;
   5. (E) any special information that should be considered in compiling a panel of potential arbitrators; and
   6. (F) the hearing locale requested, along with a explanation for that locale. If no request is made, the arbitrator may choose the locale in compliance with this chapter.
   7. (G) the name, title, address, and telephone number of a designated contact person for the party who will be paying the costs of the arbitration.
7. (7) The election of arbitration is a representation that the party choosing arbitration is solvent and able to bear the costs of the proceeding.
8. (8) An election to engage in arbitration under this subchapter is irrevocable and binding on the facility and the department. However, such an election does not preclude the parties from reaching an agreed resolution of a dispute that has been submitted for arbitration at any time during the arbitration process before the final order has been issued by the arbitrator.

Source Note:The provisions of this §163.3 adopted to be effective January 1, 1996, 20 TexReg 10757; amended to be effective October 29, 1998, 23 TexReg 10867.