Contract sanctions and the NHS dispute resolution procedureE+W
73.—(1) If there is a dispute between the Board and the contractor in relation to a contract sanction that the Board is proposing to impose, the Board may not, subject to sub-paragraph (5), impose the contract sanction except in the circumstances specified in sub-paragraphs (2) and (3).
(2) The circumstances specified in this sub-paragraph are if the contractor—
(a)refers the dispute relating to the contract sanction to the NHS dispute resolution procedure before the end of a period of 28 days beginning with the date on which the contractor was given notice in accordance with paragraph 72(4) (or such longer period as may be agreed in writing with the Board); and
(b)gives notice to the Board in writing that it has done so.
(3) Where the circumstances specified in sub-paragraph (2) apply, the Board may not impose the contract sanction unless—
(a)there has been a final determination of the dispute in accordance with regulation 83 (or by a court) and that determination permits the Board to impose the contract sanction; or
(b)the contractor ceases to pursue the NHS dispute resolution procedure,
whichever is the sooner.
(4) If the contractor does not invoke the NHS dispute resolution procedure before the end of the period specified in sub-paragraph (2)(a), the Board may impose the contract sanction with immediate effect.
(5) If the Board is satisfied that it is necessary to impose the contract sanction before the NHS dispute resolution procedure is concluded in order to protect—
(a)the safety of the contractor's patients; or
(b)itself from material financial loss,
the Board may impose the contract sanction with immediate effect, pending the outcome of that procedure (or any court proceedings).