Page:United States Statutes at Large Volume 110 Part 3.djvu/275

 PUBLIC LAW 104-191—AUG. 21, 1996 110 STAT. 2005 "(F) In the case of an exclusion of an individual or entity under subsection (b)(6)(B), the period of the exclusion shall be not less than 1 year.". SEC. 213. PERMISSIVE EXCLUSION OF INDIVIDUALS WITH OWNERSHIP OR CONTROL INTEREST IN SANCTIONED ENTITIES. Section 1128(b) (42 U.S.C. 1320a-7(b)) is amended by adding at the end the following new paragraph: " (15) INDIVIDUALS CONTROLLING A SANCTIONED ENTITY.— (A) Any individual— "(i) who has a direct or indirect ownership or control interest in a sanctioned entity and who knows or should know (as defined in section 1128A(i)(6)) of the action constituting the basis for the conviction or exclusion described in subparagraph (B); or "(ii) who is an officer or managing employee (as defined in section 1126(b)) of such an entity. "(B) For purposes of subparagraph (A), the term 'sanctioned entity* means an entity— "(i) that has been convicted of any offense described in subsection (a) or in paragraph (1), (2), or (3) of this subsection; or "(ii) that has been excluded from psirticipation under a program under title XVIII or under a State health care program.". SEC. 214. SANCTIONS AGAINST PRACTITIONERS AND PERSONS FOR FAILURE TO COMPLY WITH STATUTORY OBLIGATIONS. (a) MINIMUM PERIOD OF EXCLUSION FOR PRACTITIONERS AND PERSONS FAILING TO MEET STATUTORY OBLIGATIONS.— (1) IN GENERAL.—The second sentence of section 1156(b)(1) (42 U.S.C. 1320c-5(b)(l)) is amended by striking "may prescribe)" and inserting "may prescribe, except that such period may not be less than 1 year)". (2) CONFORMING AMENDMENT.— Section 1156(b)(2) (42 U.S.C. 1320c-5(b)(2)) is amended by striking "shall remain" and inserting "shall (subject to the minimum period specified in the second sentence of paragraph (1)) remain". (b) REPEAL OF "UNWILLING OR UNABLE" CONDITION FOR IMPOSI- TION OF SANCTION.— Section 1156(b)(1) (42 U.S.C. 1320c-5(b)(l)) is amended— (1) in the second sentence, by striking "and determines" and all that follows through "such obligations,"; and (2) by striking the third sentence. SEC. 215. INTERMEDIATE SANCTIONS FOR MEDICARE HEALTH MAINTENANCE ORGANIZATIONS. (a) APPLICATION OF INTERMEDIATE SANCTIONS FOR ANY PRO- GRAM VIOLATIONS.— (1) IN GENERAL.— Section 1876(i)(l) (42 U.S.C. 1395mm(i)(l)) is amended by striking "the Secretary may terminate" and all that follows and inserting "in accordance with procedures established under paragraph (9), the Secretsiry may at any time terminate any such contract or may impose the intermediate SEinctions described in paragraph (6)(B) or (6)(C) (whichever is applicable) on the eligible organization if the Secretary determines that the organization— "(A) has failed substantially to carry out the contract;

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