Optional_2023 Board Resources

Committee, and/or System Compliance Committee) to perform the duties under the CIA; (2) changes in the identity of the Chief Compliance Officer or the composition of the Audit Committee; and (3) the proposed sale of one of the Covered Facilities or the proposed purchase of an acute care hospital.

II.

Scheduled Reporting A. Implementation Report

Banner was required to submit an Implementation Report to the OIG within 150 days of the Effective Date that summarized the status of its implementation of the CIA requirements. Banner submitted its Implementation Report to the OIG on September 6, 2018. B. Annual Report Banner must submit Annual Reports to the OIG on its compliance with the CIA requirements for each of the five years of the CIA, which are due no later than 60 days after the anniversary date of the Effective Date. Banner submitted its first Annual Report on June 10, 2019. C. Certifications For both the Implementation Report and each Annual Report, the Chief Executive Officer and Chief Compliance Officer must sign certifications stating that Banner has implemented and is in compliance with the CIA requirements and that they have reviewed the report and believe that it is accurate and truthful. Each Annual Report will also include the certifications of the Certifying Employees. In the first Annual Report, the Chief Financial Officer signed a certification stating that Banner complied with its obligations under the Settlement Agreement with the DOJ. Banner will be required to pay monetary penalties (i.e., stipulated penalties) if it fails to comply with the obligations of the CIA. For most violations, a stipulated penalty of $2,500 per day will begin to accrue on the day after the date the obligation is due. For example, Banner may be required to pay $2,500 a day if does not maintain its System Compliance Committee, train and educate its Covered Persons and Board members, or follow its risk assessment and internal reviewprocess. In addition, Banner may have to pay the following stipulated penalties: (A) $50,000 for each false certification submitted to the OIG; (B) $1,500 for each day Banner fails to grant access to OIG; and/or (C) $1,000 for each day Banner fails to fully and adequately comply with any obligations of this CIA. II. Exclusion Banner may be excluded from participation in Federal health care programs for material breaches of the CIA. A material breach of the CIA occurs only for (A) repeated violations or a flagrant violation of any of the obligations of the CIA; (B) a failure by Banner to report a Reportable Event, take a corrective action, or make the appropriate refunds; (C) a failure to respond to a letter concerning the payment of Stipulated Payments; or (D) a failure to engage and use an IRO. Penalties for Noncompliance I. Stipulated Penalties