Participants who fail to begin or complete their CSLRP service obligation, or otherwise breach the terms and conditions of the obligation, are in default of their contracts and are subject to the consequences outlined below.

Defaults:

A participant clinician is in default if he/she:

  • Loses his/her professional license, board certification or Medicaid/Medicare billing privileges.

  • Fails to perform continuous full-time service at the approved facility, unless a change of facility or an interruption and associated extension of service is approved in writing by the contractor. No interruption in service exceeding six months will be approved by the contractor unless first approved in writing by the Department of Public Health.

  • Is terminated for good cause, or fails to comply with the contractor’s performance criteria as stated in the agreement between the primary care clinician and the contractor.

If employment is terminated for reasons beyond the clinician’s control (e.g. the closure of the site), the clinician must be available for placement in another site as designated by the contractor and the Department of Public Health. Failure to accept such reassignment will automatically result in default.

Penalties:

A participant clinician who is in default shall be liable for the following financial penalties:

  • Repayment of the total amount the clinician has received for loan repayment; and,

  • If less than one year has been served: an “unserved obligation” penalty equal to the total months of obligation multiplied by $1,000 ($500 for registered nurses); or,

  • If more than one year has been served: the "unserved obligation" penalty is equal to the number of underserved months multiplied by $1,000 ($500 for registered nurses).

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