HRS §103F-408
Changing or ending health and human services contracts
This section tells the policy board to make rules about when a contract can be changed by written agreement and when it must include a clause allowing termination for non-performance, funding cuts, or changed needs. The purchasing agency must give the provider written notice of the reasons before ending the contract.
contractorsstate agencies
The statute, as written — Modification and termination of contracts
(a) The policy board shall adopt rules specifying when a contract clause providing for adjustments in time of performance, scope of service, payment amount and terms, or other contract provisions as appropriate, by prior written consent of the parties, may be included in a contract to purchase health and human services. (b) The policy board shall adopt rules requiring the inclusion of a contract clause providing for termination of the contract, either in whole or in part, for non-performance, reduction in funds available to pay the provider, or a change in the conditions upon which the need for the service was based. The purchasing agency shall be required to provide advance written notice to the provider organization with the reasons for the termination.
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