SCHEDULE 3E+WOTHER CONTRACTUAL TERMS

PART 9E+WVARIATION AND TERMINATION OF AGREEMENTS

Agreement sanctionsE+W

73.—(1) In this paragraph and paragraph 74, “agreement sanction” means—

(a)termination of specified reciprocal obligations under the agreement;

(b)suspension of specified reciprocal obligations under the agreement for a period of up to six months; or

(c)withholding or deducting monies otherwise payable under the agreement.

(2) Where [F1NHS England] is entitled to terminate the agreement pursuant to paragraph 68, 69, 70, 71(4), 71(6) or 72, it may instead impose any of the agreement sanctions if [F1NHS England] is reasonably satisfied that the agreement sanction to be imposed is appropriate and proportionate to the circumstances which provide grounds for [F1NHS England] to terminate the agreement.

(3) If [F1NHS England] decides to impose an agreement sanction, it must notify the contractor of the agreement 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.

(4) Subject to paragraph 74, [F1NHS England] shall not impose the agreement sanction until at least 28 days after it has served notice on the contractor pursuant to sub-paragraph (3) unless it 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.

(5) Where [F1NHS England] imposes an agreement sanction, it shall be entitled to charge the contractor the reasonable costs of additional administration that [F1NHS England] has incurred in order to impose, or as a result of imposing, the agreement sanction.