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PDFWAC 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.
[Statutory Authority: RCW 71A.20.140. WSR 01-10-013, ยง 388-835-0185, filed 4/20/01, effective 5/21/01.]
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