32350. It is the intent of the Legislature in enacting this article
to encourage physicians to practice in rural areas which have
insufficient numbers of physicians to provide comprehensive medical
care.
32351. In the event the Chowchilla Memorial Hospital District
enters into a joint powers agreement with a hospital district or
hospital districts, whereby an independent governmental agency, as
provided in Chapter 5 (commencing with Section 6500) of Division 7 of
Title 1 of the Government Code, is created to investigate, defend,
settle and pay, if required, medical injury tort claims against any
of the parties to such joint powers agreement in accordance with the
authority granted by Sections 990.4 and 990.8 of the Government Code,
notwithstanding any provisions of the Insurance Code to the
contrary; then, in that event, each hospital district with under 100
beds shall have the right for a period of five years from the
effective date of this chapter, but subject to the availability of
moneys appropriated therefor, to borrow from the state for the
purpose of paying any medical injury tort judgment or settlement
which exceeds three hundred thousand dollars ($300,000) to the extent
of such excess.
However, the total amount of funds loaned by the state to all
hospital districts, which have entered into the joint powers
agreement pursuant to this chapter, shall not exceed one million
dollars ($1,000,000) in the aggregate.
32352. Loans made pursuant to this article shall be repaid to the
state pursuant to a schedule mutually agreed upon by the state
department and the hospital district receiving the loan, not
exceeding 40 years, and at an interest rate not to exceed the
five-year average of the return on the investment of state funds
pursuant to Chapter 3 (commencing with Section 16430) of Part 2 of
Division 4 of Title 2 of the Government Code. The state department
shall grant all loans which qualify under the requirements of this
chapter to the extent that funds are available therefor. No
application for a loan shall be denied because previous applications
have been made except that the state department may procure insurance
to cover the losses, if any, in connection with such loans and the
cost of such insurance may be charged to the independent agency. The
cost charged to such an independent agency for the insurance shall
not exceed 5 percent of the total of loan losses.
32353. The provisions of this section shall apply only to the
Chowchilla Memorial Hospital District, and to any other hospital
district with a bed capacity of less than 100 beds, which has entered
into a joint powers agreement with the Chowchilla Memorial Hospital
District. The Chowchilla Memorial Hospital District, or other
district specified in this section, shall have the authority to
employ physicians in the local community and such physicians, as
employees of the district shall be covered for medical injury tort
liability by the district.
32355. As a condition of eligibility for loans under this chapter,
any hospital district having a licensed bed capacity of less than 100
beds and which participates in a joint powers agreement described in
Section 32351 shall submit the following to the state department
within 60 days after the effective date of this chapter:
(a) A health quality assurance program which assures adequate
review of health services rendered;
(b) Adequate procedures for providing resources for liability
coverage, including provisions for the payment of all medical injury
tort claims or portions of claims under three hundred thousand
dollars ($300,000), and for investment of funds or resources set
aside for liability reserves; and
(c) Adequate procedures for obtaining legal services in connection
with medical injury tort claims filed against the hospital district.
(d) Adequate procedures to repay loans under Government Code and
Health and Safety Code sections relating to district hospitals.
32356. Any provisions applicable to the payment of tort claims
against a hospital district shall be applicable for the repayment of
any loan from the state to a hospital district pursuant to this
chapter.
32357. Duplicate copies of any reports prepared pursuant to Article
9 (commencing with Section 53890) of Chapter 4 of Part 1 of Division
2 of Title 5 of the Government Code by the joint powers entity
specified in Section 32351 or any party thereto shall be submitted to
the state department.
32358. The state department shall prepare and adopt regulations
establishing the specific criteria to be used for the approval of a
loan application of a district hospital under this chapter to ensure
that the hospital district complies with the intent of the
Legislature set forth in Section 32350.
Within 120 days after submission of an application by a hospital
district for a loan under the provisions of this chapter, the state
department shall submit its final recommendation to the Legislature
with respect to the approval or disapproval of the loan in order to
assist the Legislature in determining whether to appropriate funds
for the making of the loan. The state department shall notify the
hospital district submitting the application of its tentative
decision to recommend approval or disapproval of the loan within 90
days after receiving the application in order to allow the hospital
district to present additional data as may be necessary to justify
the loan.
32359. The Department of General Services shall, without cost or
obligation to the state, assist the Chowchilla Memorial Hospital
District, and any other hospital district with a bed capacity of less
than 100 beds which has entered into a joint powers agreement with
the Chowchilla Memorial Hospital District, in procuring insurance for
the purpose of paying medical injury tort judgments or settlements
exceeding one million dollars ($1,000,000) in the aggregate. Any such
procurement may, upon request of the hospital district concerned, be
made by the Department of General Services on behalf of such
hospital district.
32350. It is the intent of the Legislature in enacting this article
to encourage physicians to practice in rural areas which have
insufficient numbers of physicians to provide comprehensive medical
care.
32351. In the event the Chowchilla Memorial Hospital District
enters into a joint powers agreement with a hospital district or
hospital districts, whereby an independent governmental agency, as
provided in Chapter 5 (commencing with Section 6500) of Division 7 of
Title 1 of the Government Code, is created to investigate, defend,
settle and pay, if required, medical injury tort claims against any
of the parties to such joint powers agreement in accordance with the
authority granted by Sections 990.4 and 990.8 of the Government Code,
notwithstanding any provisions of the Insurance Code to the
contrary; then, in that event, each hospital district with under 100
beds shall have the right for a period of five years from the
effective date of this chapter, but subject to the availability of
moneys appropriated therefor, to borrow from the state for the
purpose of paying any medical injury tort judgment or settlement
which exceeds three hundred thousand dollars ($300,000) to the extent
of such excess.
However, the total amount of funds loaned by the state to all
hospital districts, which have entered into the joint powers
agreement pursuant to this chapter, shall not exceed one million
dollars ($1,000,000) in the aggregate.
32352. Loans made pursuant to this article shall be repaid to the
state pursuant to a schedule mutually agreed upon by the state
department and the hospital district receiving the loan, not
exceeding 40 years, and at an interest rate not to exceed the
five-year average of the return on the investment of state funds
pursuant to Chapter 3 (commencing with Section 16430) of Part 2 of
Division 4 of Title 2 of the Government Code. The state department
shall grant all loans which qualify under the requirements of this
chapter to the extent that funds are available therefor. No
application for a loan shall be denied because previous applications
have been made except that the state department may procure insurance
to cover the losses, if any, in connection with such loans and the
cost of such insurance may be charged to the independent agency. The
cost charged to such an independent agency for the insurance shall
not exceed 5 percent of the total of loan losses.
32353. The provisions of this section shall apply only to the
Chowchilla Memorial Hospital District, and to any other hospital
district with a bed capacity of less than 100 beds, which has entered
into a joint powers agreement with the Chowchilla Memorial Hospital
District. The Chowchilla Memorial Hospital District, or other
district specified in this section, shall have the authority to
employ physicians in the local community and such physicians, as
employees of the district shall be covered for medical injury tort
liability by the district.
32355. As a condition of eligibility for loans under this chapter,
any hospital district having a licensed bed capacity of less than 100
beds and which participates in a joint powers agreement described in
Section 32351 shall submit the following to the state department
within 60 days after the effective date of this chapter:
(a) A health quality assurance program which assures adequate
review of health services rendered;
(b) Adequate procedures for providing resources for liability
coverage, including provisions for the payment of all medical injury
tort claims or portions of claims under three hundred thousand
dollars ($300,000), and for investment of funds or resources set
aside for liability reserves; and
(c) Adequate procedures for obtaining legal services in connection
with medical injury tort claims filed against the hospital district.
(d) Adequate procedures to repay loans under Government Code and
Health and Safety Code sections relating to district hospitals.
32356. Any provisions applicable to the payment of tort claims
against a hospital district shall be applicable for the repayment of
any loan from the state to a hospital district pursuant to this
chapter.
32357. Duplicate copies of any reports prepared pursuant to Article
9 (commencing with Section 53890) of Chapter 4 of Part 1 of Division
2 of Title 5 of the Government Code by the joint powers entity
specified in Section 32351 or any party thereto shall be submitted to
the state department.
32358. The state department shall prepare and adopt regulations
establishing the specific criteria to be used for the approval of a
loan application of a district hospital under this chapter to ensure
that the hospital district complies with the intent of the
Legislature set forth in Section 32350.
Within 120 days after submission of an application by a hospital
district for a loan under the provisions of this chapter, the state
department shall submit its final recommendation to the Legislature
with respect to the approval or disapproval of the loan in order to
assist the Legislature in determining whether to appropriate funds
for the making of the loan. The state department shall notify the
hospital district submitting the application of its tentative
decision to recommend approval or disapproval of the loan within 90
days after receiving the application in order to allow the hospital
district to present additional data as may be necessary to justify
the loan.
32359. The Department of General Services shall, without cost or
obligation to the state, assist the Chowchilla Memorial Hospital
District, and any other hospital district with a bed capacity of less
than 100 beds which has entered into a joint powers agreement with
the Chowchilla Memorial Hospital District, in procuring insurance for
the purpose of paying medical injury tort judgments or settlements
exceeding one million dollars ($1,000,000) in the aggregate. Any such
procurement may, upon request of the hospital district concerned, be
made by the Department of General Services on behalf of such
hospital district.
32350. It is the intent of the Legislature in enacting this article
to encourage physicians to practice in rural areas which have
insufficient numbers of physicians to provide comprehensive medical
care.
32351. In the event the Chowchilla Memorial Hospital District
enters into a joint powers agreement with a hospital district or
hospital districts, whereby an independent governmental agency, as
provided in Chapter 5 (commencing with Section 6500) of Division 7 of
Title 1 of the Government Code, is created to investigate, defend,
settle and pay, if required, medical injury tort claims against any
of the parties to such joint powers agreement in accordance with the
authority granted by Sections 990.4 and 990.8 of the Government Code,
notwithstanding any provisions of the Insurance Code to the
contrary; then, in that event, each hospital district with under 100
beds shall have the right for a period of five years from the
effective date of this chapter, but subject to the availability of
moneys appropriated therefor, to borrow from the state for the
purpose of paying any medical injury tort judgment or settlement
which exceeds three hundred thousand dollars ($300,000) to the extent
of such excess.
However, the total amount of funds loaned by the state to all
hospital districts, which have entered into the joint powers
agreement pursuant to this chapter, shall not exceed one million
dollars ($1,000,000) in the aggregate.
32352. Loans made pursuant to this article shall be repaid to the
state pursuant to a schedule mutually agreed upon by the state
department and the hospital district receiving the loan, not
exceeding 40 years, and at an interest rate not to exceed the
five-year average of the return on the investment of state funds
pursuant to Chapter 3 (commencing with Section 16430) of Part 2 of
Division 4 of Title 2 of the Government Code. The state department
shall grant all loans which qualify under the requirements of this
chapter to the extent that funds are available therefor. No
application for a loan shall be denied because previous applications
have been made except that the state department may procure insurance
to cover the losses, if any, in connection with such loans and the
cost of such insurance may be charged to the independent agency. The
cost charged to such an independent agency for the insurance shall
not exceed 5 percent of the total of loan losses.
32353. The provisions of this section shall apply only to the
Chowchilla Memorial Hospital District, and to any other hospital
district with a bed capacity of less than 100 beds, which has entered
into a joint powers agreement with the Chowchilla Memorial Hospital
District. The Chowchilla Memorial Hospital District, or other
district specified in this section, shall have the authority to
employ physicians in the local community and such physicians, as
employees of the district shall be covered for medical injury tort
liability by the district.
32355. As a condition of eligibility for loans under this chapter,
any hospital district having a licensed bed capacity of less than 100
beds and which participates in a joint powers agreement described in
Section 32351 shall submit the following to the state department
within 60 days after the effective date of this chapter:
(a) A health quality assurance program which assures adequate
review of health services rendered;
(b) Adequate procedures for providing resources for liability
coverage, including provisions for the payment of all medical injury
tort claims or portions of claims under three hundred thousand
dollars ($300,000), and for investment of funds or resources set
aside for liability reserves; and
(c) Adequate procedures for obtaining legal services in connection
with medical injury tort claims filed against the hospital district.
(d) Adequate procedures to repay loans under Government Code and
Health and Safety Code sections relating to district hospitals.
32356. Any provisions applicable to the payment of tort claims
against a hospital district shall be applicable for the repayment of
any loan from the state to a hospital district pursuant to this
chapter.
32357. Duplicate copies of any reports prepared pursuant to Article
9 (commencing with Section 53890) of Chapter 4 of Part 1 of Division
2 of Title 5 of the Government Code by the joint powers entity
specified in Section 32351 or any party thereto shall be submitted to
the state department.
32358. The state department shall prepare and adopt regulations
establishing the specific criteria to be used for the approval of a
loan application of a district hospital under this chapter to ensure
that the hospital district complies with the intent of the
Legislature set forth in Section 32350.
Within 120 days after submission of an application by a hospital
district for a loan under the provisions of this chapter, the state
department shall submit its final recommendation to the Legislature
with respect to the approval or disapproval of the loan in order to
assist the Legislature in determining whether to appropriate funds
for the making of the loan. The state department shall notify the
hospital district submitting the application of its tentative
decision to recommend approval or disapproval of the loan within 90
days after receiving the application in order to allow the hospital
district to present additional data as may be necessary to justify
the loan.
32359. The Department of General Services shall, without cost or
obligation to the state, assist the Chowchilla Memorial Hospital
District, and any other hospital district with a bed capacity of less
than 100 beds which has entered into a joint powers agreement with
the Chowchilla Memorial Hospital District, in procuring insurance for
the purpose of paying medical injury tort judgments or settlements
exceeding one million dollars ($1,000,000) in the aggregate. Any such
procurement may, upon request of the hospital district concerned, be
made by the Department of General Services on behalf of such
hospital district.
