OAR 409-036-0120: Failure to Comply; Penalties & Appeals

(1) A loan repayment recipient, under OAR 409-036-0030 shall be considered in non-compliance with OARs 409-036-0000 to 409-036-0150 when the eligible provider participating in the program: (a) Fails to comply with the terms of the contract; (b) Fails to maintain employment at a Qualified Practice Site for the duration of the contract term; (c) Fails to complete the minimum service obligation and does not apply for, or receive, a suspension or waiver of minimum service obligations under OAR 409-036-0100; (d) Participates in the National Health Services Corps (NHSC), NurseCorps, Oregon Partnership State Loan Repayment Program or the NHSC Scholarship Program, or any other state or federal program(s) offering funds in exchange for a service obligation, unless expressly permitted under state or federal law. (2) The Authority may impose a penalty on an eligible provider receiving loan repayment subsidies in an amount up to the sum of: (a) The total paid from the Health Care Provider Incentive Fund to the participant or on behalf of the participant for any periods of obligated service not served; (b) $500 for each month of the minimum service period not completed according to the terms of the contract, up to 10% of total award amount; and (c) Interest on the above amounts at the maximum prevailing rate, as determined by the Oregon Department of Revenue, calculated from the date of breach until full repayment has been made. (3) A loan forgiveness or scholarship recipient under OAR 409-036-0035 and 409-036-0040, respectively must be considered in non-compliance with OARs 409-036-0000 to 409-036-0150 when the eligible provider participating in the Program: (a) Fails to complete their residency or training; (b) Fails to comply with the terms of the contract; (c) Fails to maintain employment at a Qualified Practice Site for the duration of the contract term; (d) Fails to complete the minimum service obligation and does not apply for or receive a waiver under OAR 409-036-0100; (e) Participates in the National Health Services Corps (NHSC), NurseCorps, Oregon Partnership State Loan Repayment Program or the NHSC Scholarship Program, or any other State or Federal program(s) offering funds in exchange for a service obligation, unless expressly permitted under state or federal law. (4) The Authority may impose a penalty on any eligible provider participating in the Program and receiving a loan forgiveness or scholarship incentive as follows: (a) If the eligible provider fails to complete their residency or training: payment to the Authority may be collected in an amount equal to 100% of the funds received from the Authority plus interest on the unpaid balance as accrued from the disbursement date of the funds according to the terms of the contract. (b) If the eligible provider completes their residency or training but fails to comply with the Sections (3)(b) to (e) of this rule: payment to the Authority may be collected in an amount equal to 100% of the funds received from the Authority plus interest at the maximum prevailing rate, as determined by the Oregon Department of Revenue, plus a 25 percent penalty on the total award paid to date on the unpaid balance as accrued from the disbursement date of the funds according to the terms of the contract. (5) The Authority must collect any penalties imposed under this section and deposit the funds in the Authority’s account established under ORS 676.450. (6) If the Authority determines that an eligible provider participating in the Program is subject to a penalty under this section, the Authority must issue a notice of proposed action as pursuant to ORS Chapter 183.