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To assure compliance, the department may
(1) request, in accordance with 7 AAC 105.240, records related to the services provided under 7 AAC 125.010 — 7 AAC 125.199; or
(2) take immediate custody of a provider’s original records, maintained in accordance with 7 AAC 105.230, if the department has reason to believe, based on an audit, program review, or investigation, that those records are at risk of alteration; once records are in the custody of the department, the provider may make copies of those records only under the supervision of the department. (e) ln addition to the authority under 7 AAC 105.400 — 7 AAC 105.490 to take action in regard to certification, the department will deny an initial application or an application to renew certification if
(1) the provider fails to submit a complete application under (a) of this section;
(2) the provider’s certification, license, or enrollment related to Medicaid or Medicare was denied, revoked, or rescinded;
(3) the provider’s name appears on any state or federal exclusion list related to health care services;
(4) the department has documentation that indicates the provider is unable or unwilling to meet the certification requirements of this section or any other Medicaid requirement under 7 AAC 105 — 7 AAC 160;
(5) the department has evidence that a provider’s owner or administrator does not operate honestly, responsibly, and in accordance with applicable laws in order to maintain the integrity and fiscal viability of the medical assistance program;
(6) based upon evidence from an audit, provider review, or investigation, the department has probable cause to believe that a provider’s noncompliance with the Medicaid program or 7 AAC 125.010 — 7 AAC 125.199 causes immediate risk to the health, safety, or welfare of a recipient or would be considered to be fraud, abuse, or waste; or
(7) the provider has two consecutive probationary certification periods under (b)(1) of this section and is still not compliant to the department's satisfaction. (f) If the department denies an initial application or an application to renew certification, the department will send written notice of the action and information regarding the provider’s right to appeal the decision under AS 44.64. (g) The department may enter into a contract under AS 36.30, a grant agreement, or another arrangement permitted by law, with a provider or tribal health program that authorizes the provider or tribal health program to provide personal care services to a specified group of recipients or in a specific geographical area. (h) A provider of personal care services shall comply with the accounting, reporting, and cost