(1) When a nursing facility fails to pay an assessment or penalty in the amount or on the date required by this article, the department shall add interest at the rate provided in section 806 of the act of April 9, 1929 (P.L. 343, No. 176),¹ known as “The Fiscal Code,” to the unpaid amount of the assessment or penalty from the date prescribed for its payment until the date it is paid.

(2) When a nursing facility fails to file a report or to furnish records to the department as required by this article, the department shall impose a penalty against the nursing facility in the amount of one thousand dollars ($1,000), plus an additional amount of two hundred dollars ($200) per day for each additional day that the failure to file the report or furnish the records continues.

(3) When a nursing facility that is a medical assistance provider or that is related through common ownership or control as defined in 42 CFR 413.17(b) (relating to cost to related organizations) to a medical assistance provider fails to pay all or part of an assessment or penalty within sixty (60) days of the date that payment is due, the department may deduct or instruct a medical assistance managed care organization to deduct the unpaid assessment or penalty and any interest owed thereon from any medical assistance payments due to the nursing facility or to any related medical assistance provider until the full amount is recovered. Any such deduction shall be made only after written notice to the medical assistance provider and may be taken in amounts over a period of time taking into account the financial condition of the medical assistance provider.

(4) Within sixty (60) days after the end of each calendar quarter, the department shall notify the Department of Health of any nursing facility that has assessment, penalty or interest amounts that have remained unpaid for ninety (90) days or more. The Department of Health shall not renew the license of any such nursing facility until the department notifies the Department of Health that the nursing facility has paid the outstanding amount in its entirety or that the department has agreed to permit the nursing facility to repay the outstanding amount in installments and that, to date, the nursing facility has paid the installments in the amount and by the date required by the department.

(5) The secretary may waive all or part of the interest or penalties assessed against a nursing facility pursuant to this article for good cause as shown by the nursing facility.