§ 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.