(1) The service provider may refuse services to a client when the service provider has determined and documented:

(a) Why the provider cannot meet the client's needs; or

(b) How the provider's refusal to serve the client would be in the best interest of the client or other clients.

(2) Before terminating services to the client, the service provider must notify the department, the client and the client's legal representative in writing ten working days before terminating services.