US · guidance
CMS Pub. 100-04, ch. 36, § 30.9
Breach of Contract
Pursuant to 42 CFR 414.422(f)(1), any violation of the terms of the contract by the contract
supplier, including a failure to comply with licensing and accreditation requirements, constitutes
a breach of contract.
If a supplier breaches its contract, CMS may take one or more of the following actions:
(i) Require the contract supplier to submit a corrective action plan (CAP);
(ii) Suspend the contract supplier’s contract;
(iii) Terminate the contract;
(iv) Preclude the contract supplier from future participation in the competitive bidding
program;
(v) Revoke the supplier number of the contract supplier; or
(vi) Avail itself of other remedies allowed by law.
CMS will notify the DME MACs in the event that a CMS action results in a termination or
suspension of the contract.
History
(Rev. 1502; Issued: 05-09-08; Effective/Implementation Date: 06-09-08)
Provenance
- Source
- cms.gov
- Retrieved
- 2026-08-25
- Edition
- iom-2026-08-25
- Content hash
224ae6ca1aab2ea6a55262b95a4f37b22dd791d2fdc1ab3052c56a59cb0ad605
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