CHAPTER 2. COUNTY HOSPITAL GOVERNING BOARDS
IC 16-22-2
Chapter 2. County Hospital Governing Boards
IC 16-22-2-1
Establishment
Sec. 1. (a) A county executive may establish a hospital in thefollowing manner:
(1) The county executive shall promptly determine thefollowing:
(A) The buildings and the estimated cost of the buildingsneeded to serve the needs of the county.
(B) The method of financing the hospital buildings.
(C) The estimated amount of money to be raised by the saleof general obligation bonds of the county or revenue bondsof an authority.
(2) The county executive shall enter an order establishing thehospital.
(b) The appointment of the members of the board and theacquisition and financing of hospital buildings shall be done underthis article.
As added by P.L.2-1993, SEC.5.
IC 16-22-2-2
Board; qualifications; appointments; terms; vacancies
Sec. 2. (a) Except as otherwise provided in this article or inIC 16-12.1 (before its repeal on July 1, 1993), each hospitalestablished under this article or IC 16-12.1 (before its repeal on July1, 1993) must have a board of four (4) members, appointed by thecounty executive. All four (4) members must be residents of thecounty in which the hospital is located and one (1) member may bea licensed physician who is a member of the medical staff of thehospital. When appointing a physician member, the county executiveshall consider the recommendation of the medical staff of thehospital.
(b) The initial appointments made under this section are asfollows:
(1) One (1) member holds office for one (1) year.
(2) One (1) member holds office for two (2) years.
(3) One (1) member holds office for three (3) years.
(4) One (1) member holds office for four (4) years.
(c) After the initial appointments, board members shall beappointed to serve terms of four (4) years.
(d) Except as provided in section 11 of this chapter, a vacancy onthe board shall be filled by the county executive, and the appointeeshall be appointed to complete the unexpired term of the memberwhose office has been vacated.
As added by P.L.2-1993, SEC.5. Amended by P.L.91-2002, SEC.1and P.L.100-2002, SEC.1.
IC 16-22-2-3 Governing board; qualifications; appointments; terms
Sec. 3. (a) This section applies to hospitals operated underIC 16-12-1 (before its repeal on July 1, 1993).
(b) The management of a hospital shall be under the control of agoverning board consisting of eleven (11) members. Three (3) of themembers of the governing board must be the members of the countyexecutive.
(c) If the hospital is acquired or equipped without the aid of ahospital association:
(1) three (3) members of the governing board shall be appointedby the county executive; and
(2) five (5) members of the governing board, one (1) of whommay be a licensed physician, shall be appointed by the countyfiscal body.
(d) If the hospital is acquired or equipped with the aid of ahospital association:
(1) four (4) members of the governing board, one (1) of whommay be a licensed physician, shall be appointed by the hospitalassociation;
(2) two (2) members of the governing board shall be appointedby the county executive; and
(3) two (2) members of the governing board shall be appointedby the county fiscal body.
(e) The term of an appointed member of the governing board istwo (2) years, except a person appointed by the county executiveunder subsection (c)(1) or (d)(2) serves a one (1) year term.Thereafter, the persons appointed by the county executive to succeedinitial persons serve two (2) year terms.
As added by P.L.2-1993, SEC.5.
IC 16-22-2-3.1
Governing board; members; terms
Sec. 3.1. (a) This section applies to a hospital operated underIC 16-12-4-2 (before its repeal on July 1, 1993) that is located in acounty having a population of more than forty-one thousand (41,000)but less than forty-three thousand (43,000).
(b) The management of a hospital is under the control of agoverning board. The governing board consists of nine (9) membersappointed by the county executive as follows:
(1) Three (3) members must be members of the countyexecutive.
(2) Six (6) members must be residents of the county. One (1)member may be a licensed physician.
(c) The term of each member of the governing board is three (3)years.
(d) If a vacancy occurs due to the expiration of an appointedmember's term and the county executive does not fill the vacancywithin sixty (60) days from the date of expiration, the member whoseterm has expired is automatically reappointed for another term.
As added by P.L.56-1995, SEC.2. Amended by P.L.91-2002, SEC.2
and P.L.100-2002, SEC.2.
IC 16-22-2-4
Governing board in certain counties; members; terms
Sec. 4. (a) This section applies to the governing boards of countyhospitals in a county having a population of more than thirty-ninethousand (39,000) but less than thirty-nine thousand six hundred(39,600).
(b) The governing board of a county hospital consists of seven (7)members, as follows:
(1) Three (3) members must be the members of the countyexecutive.
(2) Four (4) members, one (1) of whom may be a licensedphysician, shall be appointed by the judge of the circuit court ofthe county.
(c) The term of office for members of the governing board, otherthan the members of the county executive, is two (2) years.
As added by P.L.2-1993, SEC.5. Amended by P.L.170-2002,SEC.103.
IC 16-22-2-5
Governing board; members; terms
Sec. 5. (a) This section applies to county hospitals in countieshaving a population of more than eighteen thousand (18,000) but lessthan eighteen thousand three hundred (18,300).
(b) The hospital and the affairs and business of the hospital shallbe under the management and control of a governing boardconsisting of seven (7) members as follows:
(1) Three (3) members must be the members of the countyexecutive.
(2) Two (2) members shall be appointed by the county fiscalbody, one (1) of whom may be a licensed physician.
(3) Two (2) members shall be appointed by the countyexecutive.
(c) One (1) of the members initially appointed by the county fiscalbody serves for one (1) year and one (1) of the members initiallyappointed serves for two (2) years. After the initial appointment, themembers serve for two (2) years.
(d) One (1) of the members initially appointed by the countyexecutive serves for one (1) year and one (1) of the members initiallyappointed serves for two (2) years. After the initial appointment, themembers serve for two (2) years.
As added by P.L.2-1993, SEC.5. Amended by P.L.35-1997, SEC.2;P.L.91-2002, SEC.3 and P.L.100-2002, SEC.3.
IC 16-22-2-5.5
Repealed
(Repealed by P.L.64-1998, SEC.8.)
IC 16-22-2-6 County hospital governing board; membership; terms of office
Sec. 6. (a) This section applies to hospitals established under Acts1917, c.144, s.1.
(b) Except as provided in section 7 of this chapter, themanagement of the hospital shall be under the control of a governingboard consisting of four (4) members appointed by the countyexecutive. One (1) of the members may be a licensed physician. Themembers shall be chosen from the residents of the county.
(c) The initial terms of the members are as follows:
(1) One (1) member has a term of one (1) year.
(2) One (1) member has a term of two (2) years.
(3) One (1) member has a term of three (3) years.
(4) One (1) member has a term of four (4) years.
After the initial appointments, the members serve for four (4) years.
As added by P.L.2-1993, SEC.5. Amended by P.L.35-1997, SEC.3;P.L.91-2002, SEC.4 and P.L.100-2002, SEC.4.
IC 16-22-2-7
Governing board; membership; increase or decrease in number;qualifications; terms
Sec. 7. (a) Except as provided in subsection (d), a governing boardof four (4) members in existence on September 2, 1971, may petitionthe county executive to increase the size of the board to five (5), six(6), seven (7), eight (8), or nine (9) members. If the county executiveapproves the petition, the county executive shall appoint newmembers to increase the number of board members to the chosen sizein the following manner:
(1) All members must be residents of the county in which thehospital is located.
(2) If a board size of five (5) members is chosen, a new membershall be appointed for an initial term of one (1) year.
(3) If a board size of six (6) members is chosen, the newmembers shall be appointed in the following order as necessary:
(A) One (1) new member for an initial term of one (1) year.
(B) One (1) new member for an initial term of two (2) years.
(4) If a board size of seven (7) members is chosen, the newmembers shall be appointed in the following order as necessary:
(A) One (1) new member for an initial term of one (1) year.
(B) One (1) new member for an initial term of two (2) years.
(C) One (1) new member for an initial term of three (3)years.
(5) If a board size of eight (8) members is chosen, the newmembers shall be appointed in the following order as necessary:
(A) One (1) new member for an initial term of one (1) year.
(B) One (1) new member for an initial term of two (2) years.
(C) One (1) new member for an initial term of three (3)years.
(D) One (1) new member for an initial term of four (4) years.
(6) If a board size of nine (9) members is chosen, the newmembers shall be appointed in the following order as necessary: (A) Two (2) new members for an initial term of one (1) year.
(B) One (1) new member for an initial term of two (2) years.
(C) One (1) new member for an initial term of three (3)years.
(D) One (1) new member for an initial term of four (4) years.
(7) If a board size of seven (7), eight (8), or nine (9) membersis chosen, two (2) members may be licensed physicians.
(b) A governing board that has increased its size may petition thecounty executive to decrease the size of the board. However, adecrease under this subsection may only be accomplished through:
(1) the vacancy of a member's position, either throughexpiration of the member's term or any other cause; or
(2) removal of a member as provided under applicable law.
(c) There is no limit to the number of times a governing boardmay seek to increase or decrease its size under this section.
(d) For a governing board of four (4) members located in a countyhaving a population of:
(1) more than fourteen thousand five hundred (14,500) but lessthan fourteen thousand nine hundred (14,900);
(2) more than twenty-five thousand (25,000) but less thantwenty-five thousand five hundred (25,500); or
(3) more than thirty-three thousand eight hundred (33,800) butless than thirty-four thousand three hundred (34,300);
the county executive may increase the number of board members tofive (5), six (6), or seven (7), subject to the limitations of this section.After the initial appointments, each board member shall be appointedto serve for a term of four (4) years.
As added by P.L.2-1993, SEC.5. Amended by P.L.35-1997, SEC.4;P.L.91-2002, SEC.5 and P.L.100-2002, SEC.5.
IC 16-22-2-8
County hospitals in counties with existing city hospital operatingunder IC 16-23-1; creation; board and association; membership;appointment; joint operation
Sec. 8. (a) This section applies to a county where a city hospitalis operated under IC 16-23-1.
(b) A county hospital may be created by an order of the countyexecutive without filing a petition or holding an election.
(c) The county executive may create a hospital association underIC 16-22-6.
(d) An appointing board shall be formed to appoint the membersof the governing board of the county hospital. The appointing boardshall consist of three (3) members, as follows:
(1) The executive of the city where the city hospital is located.
(2) The judge of the circuit court of the county.
(3) A member of the county executive chosen by the countyexecutive of the county.
(e) Each member must take and subscribe an oath for the honestand faithful performance of the member's duties, which shall be filedin the auditor's office of the county. (f) The governing board consists of seven (7) members with thefollowing qualifications:
(1) Each member must be a qualified voter in the county.
(2) Not more than two (2) members may be licensed physicians.
(3) One (1) member may be a registered nurse licensed topractice in Indiana.
(g) Initial and subsequent appointments to the hospital board shallbe made for staggered terms ending on February 1 to coincide withthe terms of members of the city hospital board of directors createdby IC 16-23-1.
(h) The appointing board members may serve without bond. Theregular meeting of the appointing board for the appointment ofmembers to the hospital board shall be on the third Monday inJanuary of each year following the year of the initial appointments.The meeting may adjourn periodically until the appointments for allexpired or vacant memberships are made. Vacancies occurring on thehospital board may be filled at a special meeting of the appointingboard called by the county auditor or by two (2) members of theappointing board on five (5) days notice to all appointing boardmembers, or without notice if all of the appointing board membersare present at the meeting. Each meeting of the appointing boardshall be held at the county executive's room of the county, unless byunanimous consent the board determines to hold the meeting atanother location.
(i) The county executive shall choose the board's member of theappointing board each year following the year of initial appointmentsat the board's regular January meeting.
(j) The governing board may operate the county hospital jointlywith the city hospital operated in the same county under IC 16-23-1.The joint operation may include joint employment of anadministrator and other personnel, joint policies, joint purchases,joint services, and other programs to deliver health care at a reducedcost. The governing board of the county hospital may contract withthe governing board of the city hospital to allocate revenues andexpenditures and for the administration of the hospitals, but recordsmust be kept that reflect the separate ownership, financialobligations, and existence of the county hospital and the cityhospital.
As added by P.L.2-1993, SEC.5. Amended by P.L.91-2002, SEC.6and P.L.100-2002, SEC.6.
IC 16-22-2-9
Board organization; bond; meetings; quorum; compensation andreimbursements
Sec. 9. (a) Each governing board member shall not more than ten(10) days after appointment and before entering on official dutiestake an oath to support the Constitution of the United States and theConstitution of the State of Indiana and to faithfully discharge theduties of office. The board shall adopt bylaws that provide for theelection of one (1) member as chairman, one (1) member as
secretary, and other officers the board considers necessary oradvisable.
(b) The county treasurer of the county in which the hospital islocated shall be the treasurer of the governing board. Money in thehospital fund shall be disbursed only on warrants issued by thecounty auditor and countersigned by the county treasurer. However,the board, with the approval of the county executive, may elect atreasurer who shall also serve as the disbursing officer of thehospital. Checks drawn by the treasurer must be countersigned by aperson selected by the board. Approval by the county executive forthe board to elect a treasurer is permanent and the treasurer may notbe a member of the board.
(c) The executive director and all persons whose duty it is tohandle funds of the hospital must execute a corporate surety bond inan amount and with conditions required by the board. If a treasureris elected by the board, the treasurer shall be separately bonded in anamount fixed by the board but not less than twenty-five thousanddollars ($25,000). The board may elect an assistant treasurer whomay not be a member of the board and who must be separatelybonded in an amount fixed by the board greater than twenty-fivethousand dollars ($25,000). The bond on all persons except thetreasurer and assistant treasurer may be a blanket corporate suretybond conditioned for the faithful performance of duties. All bondsrequired by this subsection must be approved by the board and filedwith the county recorder. The premiums shall be paid out of hospitalfunds.
(d) A majority of the members of the governing board constitutesa quorum and board action requires the affirmative vote of a majorityof those members present at a regular or special meeting of the boardat which a quorum is present. If a board member is absent from three(3) consecutive regular board meetings or is absent from four (4)regular board meetings during a year, upon recommendation by theboard, the member may be removed from office by the countyexecutive and, except as provided in section 7(b) of this chapter, thevacancy created shall be filled as provided in section 11 of thischapter.
(e) Each board member shall be reimbursed for expenditures madeby the member in performing the duties of office and an itemizedstatement of expenses must be filed with the secretary and allowedby the board. Each governing board member may receive annualcompensation not to exceed three thousand six hundred dollars($3,600) with compensation to be fixed by the board.
(f) The governing board shall hold at least ten (10) regularmeetings each year and special meetings of the board may be calledat any time by the chairman or two (2) members of the board. Thesecretary of the board shall keep a complete record of allproceedings.
(g) A board member may receive group health and life insurancebenefits paid by the hospital. Health and life insurance benefits arenot considered compensation under subsection (e). (h) A board member may attend meetings and seminars for thebenefit of the hospital with the cost of the meetings and seminarspaid by the hospital. A payment made by the hospital under thissubsection to a board member is not considered compensation undersubsection (e).
As added by P.L.2-1993, SEC.5. Amended by P.L.35-1997, SEC.5.
IC 16-22-2-10
Conflicts of interest; disclosure; abstention; removal
Sec. 10. (a) An individual is not prohibited from serving as amember of the governing board if the member:
(1) has a pecuniary interest in; or
(2) derives a profit from;
a contract or purchase connected with the hospital. However, themember shall disclose the interest or profit in writing to the boardand provide a copy to the state board of accounts. The member shallabstain from voting on any matter that affects the interest or profit.
(b) The governing board shall adopt a written conflict of interestpolicy that meets the requirements of subsection (a). The writtenconflict of interest policy may contain other requirements asdetermined by the board.
(c) A member of a governing board who violates this section orthe written conflict of interest policy described in subsection (b) maybe removed from the governing board by action of the board.
(d) The county executive may not:
(1) reappoint to a governing board; or
(2) appoint to a governing board;
an individual who violates this section or the written conflict ofinterest policy described in subsection (b) while serving or afterserving as a member of a governing board.
As added by P.L.2-1993, SEC.5. Amended by P.L.125-2006, SEC.3.
IC 16-22-2-11
Vacancies on governing board
Sec. 11. (a) Except as provided in section 12 of this chapter,whenever a vacancy occurs on the governing board, the existinggoverning board shall submit a list of three (3) candidates for eachvacancy to be filled to the appointing authority.
(b) For each vacancy, the appointing authority may do one (1) ofthe following:
(1) Appoint one (1) of the three (3) candidates submitted by thegoverning board.
(2) Request and receive from the governing board a second listof three (3) candidates.
(3) Appoint an individual who meets the requirementsconcerning board members and who was not named in theinitial list submitted by the governing board.
(c) If the appointing authority requests and receives a second listof three (3) candidates under subsection (b)(2), the appointingauthority may do one (1) of the following: (1) Appoint one (1) of the three (3) candidates named in thesecond list.
(2) Appoint an individual who meets the requirementsconcerning board members and who was not named in thesecond list of three (3) candidates submitted by the governingboard.
(d) The appointment for a vacancy shall be made not more thansixty (60) days after submission of the initial list of candidates undersubsection (a).
(e) If the vacancy occurred due to the expiration of a member'sterm and the vacancy is not filled within sixty (60) days of theexpiration date, the member whose term expired is automaticallyreappointed for another term.
(f) Each candidate submitted by the governing board must meetthe requirements concerning governing board members.
As added by P.L.2-1993, SEC.5. Amended by P.L.56-1995, SEC.4.
IC 16-22-2-12
Vacancies on governing board for certain counties
Sec. 12. (a) This section applies to governing boards of a countyhospital in a county having a population of more than:
(1) eighteen thousand (18,000) but less than eighteen thousandthree hundred (18,300);
(2) twenty-seven thousand four hundred (27,400) but less thantwenty-seven thousand five hundred (27,500); and
(3) forty-one thousand (41,000) but less than forty-threethousand (43,000).
(b) The appointing authority shall appoint a member to fill avacancy on the governing board within sixty (60) days after thevacancy occurs.
As added by P.L.56-1995, SEC.5. Amended by P.L.170-2002,SEC.104.
IC 16-22-2-13
Governing board membership limitation
Sec. 13. Except as otherwise required by state law, a member ofan appointing authority for the governing board of a hospitalestablished and operated under this article, except a hospitalestablished and operated under IC 16-22-8, may not serve on thehospital's governing board.
As added by P.L.100-2002, SEC.7.