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Paragraph 75 Contract sanctions

England and Wales

(1)

In this paragraph and paragraph 76, “contract sanction” means—

(a)

termination of specified reciprocal obligations under the contract;

(b)

suspension of specified reciprocal obligations under the contract for a period of up to six months; or

(c)

withholding or deducting monies otherwise payable under the contract.

(2)

Where F1NHS England is entitled to terminate the contract pursuant to paragraph 70, 71, 72, 73(4), 73(6) or 74, it may instead impose any of the contract sanctions if NHS England is reasonably satisfied that the contract sanction to be imposed is appropriate and proportionate to the circumstances giving rise to NHS England’s entitlement to terminate the contract.

(3)

NHS England shall not, under sub-paragraph (2), be entitled to impose any contract sanction that has the effect of terminating or suspending any obligation to provide, or any obligation that relates to, mandatory services.

(4)

If NHS England decides to impose a contract sanction, it must notify the contractor of the contract sanction that it proposes to impose, the date upon which that sanction will be imposed and provide in that notice an explanation of the effect of the imposition of that sanction.

(5)

Subject to paragraph 76, NHS England shall not impose the contract sanction until at least 28 days after it has served notice on the contractor pursuant to sub-paragraph (4) unless NHS England is satisfied that it is necessary to do so in order to—

(a)

protect the safety of the contractor's patients; or

(b)

protect itself from material financial loss.

(6)

Where NHS England imposes a contract sanction, NHS England shall be entitled to charge the contractor the reasonable costs of additional administration that NHS England has incurred in order to impose, or as a result of imposing, the contract sanction.

Annotations

Textual amendments

F1

Words in Regulations substituted (6.11.2023) by The Health and Care Act 2022 (Further Consequential Amendments) (No. 2) Regulations 2023 (S.I. 2023/1071), reg. 1(1), Sch. para. 1