WAC 388-835-0185. Does DSHS withhold payment for services when a contract is terminated?

(1) Payment for services provided before a contract was terminated, equal to the amount determined in WAC 388-835-0180 (3), may be withheld by DSHS until the provider files a properly completed final annual cost report and a final settlement has been calculated. (2) Instead of withholding payments, DSHS may allow a provider to offer security equal to the determined and/or estimated overpayments even when the overpayments are being disputed in good faith. Types of security acceptable to DSHS are: (a) A surety bond issued by a bonding company acceptable to DSHS; (b) An assignment of funds to DSHS; (c) Collateral acceptable to DSHS; (d) A purchaser's assumption of liability for the provider's overpayment; or (e) Any combination of (a) through (d) of this subsection. (3) DSHS must release any payments withheld if a provider gives acceptable security equal to the determined and/or estimated overpayments.