Breach of Contract

30.9 - Breach of Contract (Rev. 1502; Issued: 05-09-08; Effective/Implementation Date: 06-09-08) Pursuant to 42 CFR 414.422(f)(1), any violation of the terms of the contract by the contract supplier, including a failure to comply with licensing and accreditation requirements, constitutes a breach of contract. If a supplier breaches its contract, CMS may take one or more of the following actions: (i) Require the contract supplier to submit a corrective action plan (CAP); (ii) Suspend the contract supplier’s contract; (iii) Terminate the contract; (iv) Preclude the contract supplier from future participation in the competitive bidding program; (v) Revoke the supplier number of the contract supplier; or (vi) Avail itself of other remedies allowed by law. CMS will notify the DME MACs in the event that a CMS action results in a termination or suspension of the contract.