Greenpath Health Services, Inc., an HMO, recently terminated some providers from its network in response to the changing enrollment and geographic needs of the plan. A provision in Greenpath's contracts with its healthcare providers states that Greenpath can terminate the contract at any time, without providing any reason for the termination, by giving the other party a specified period of notice. The state in which Greenpath operates has an HMO statute that is patterned on the NAIC HMO Model Act, which requires Greenpath to notify enrollees of any material change in its provider network. As required by the HMO Model Act, the state insurance department is conducting an examination of Greenpath's operations. The scope of the on-site examination covers all aspects of Greenpath's market conduct operations, including its compliance with regulatory requirements.The contracts between Greenpath and its healthcare providers contain a termination provision known as

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The provision in Greenpath's contracts that allows for termination without providing any reason is known as a "without cause" termination provision. This is different from a "breach of contract" provision, which would require a specific reason for termination such as a violation of the contract terms. It is also different from a "fair procedure" provision, which would require a process for resolving disputes or allowing the provider to challenge the termination. Finally, it is not related to "economic credentialing," which is a controversial practice that involves terminating providers based on their financial performance rather than the quality of care they provide.