(a) Violation of any Medi-Cal statute, rule or regulation relating to the provision of health care services under the California Medical Assistance Program by an individual, partnership, clinic, group, association, corporation, or institution, or any officer, director, agent or employee, shall be deemed contrary to public health, safety, welfare, morals, and to said program, and to constitute grounds for issuing a reprimand; placing the provider on probationary status; or suspension from participation in said program.

(b) The type and degree of the sanction shall be governed by the severity of the violation. Mitigating circumstances shall be considered in reaching a final determination on whether administrative sanctions will be imposed and the extent and degree of their severity.