11-1436

11-1436. Renegotiation of agreements on change
in county's health care duties

A. The operating agreement shall provide that:

1. If the state or federal government amends, modifies, alters or changes the law
to reduce the county's financial or programmatic responsibility for health care for the
indigent sick of the county, any agreement for compensation or reimbursement between the
sponsoring county and the nonprofit corporation is voidable within sixty days after the
effective date of the change.

2. During the sixty day period:

(a) The corporation and the sponsoring county shall renegotiate the financial or
programmatic terms, or both, of the operating agreement to prevent the corporation from
retaining or being compensated in amounts that are greater than fair compensation for its
duties and obligations under the agreement in light of the changes in the state or
federal law.

(b) The sponsoring county has the right to recoup from the corporation any monies
paid that are not consistent with the corporation's receipt of fair compensation in light
of the changes in the state or federal law.

3. If the nonprofit corporation and the sponsoring county are unable to complete
the required renegotiations within the sixty day period, the corporation shall:

(a) Continue to provide the services and obligations required of it by the terms of
the applicable agreement.

(b) Pay to the sponsoring county a penalty in an amount that was previously
negotiated between the parties and that is contained in the agreement. The penalty plus
interest are the sole obligations of the nonprofit corporation and shall continue to
accrue and be paid by the corporation until the renegotiation of the compensation
provisions of the agreement are finalized.

B. The agreement may contain provisions permitting arbitration of any dispute if
the parties do not complete the renegotiation within the sixty day period.