CHAPTER 3. POWERS OF HOSPITAL GOVERNING BOARDS
IC 16-22-3
Chapter 3. Powers of Hospital Governing Boards
IC 16-22-3-1
General powers and responsibilities
Sec. 1. (a) The governing board is the supreme authority in ahospital and is responsible for the management, control, andoperation of the hospital. The board has the powers and duties setforth in this chapter.
(b) The governing board has the powers granted to boards ofnonprofit corporations under IC 23-17, including the powers to:
(1) join or sponsor membership in organizations andassociations that benefit hospitals;
(2) enter into partnerships and joint ventures;
(3) incorporate other corporations; and
(4) offer to the general public products and services of anyorganization, association, partnership, or corporation describedunder this subsection;
except to the extent the powers are inconsistent with this article orare specifically prohibited by law.
(c) In construing subsection (b), the existence of the authority ora power shall be determined in favor of the hospital if generallyauthorized or existing under IC 23-17. A resolution of the governingboard is presumptive evidence of the existence of the hospital'spower under IC 23-17.
(d) The governing board may appoint and specify the privilegesof the medical staff, with the advice and recommendations of themedical staff in accordance with section 9 of this chapter. Themedical staff is responsible to the board for the clinical and scientificwork of the hospital and shall advise the board regardingprofessional problems and policies.
As added by P.L.2-1993, SEC.5.
IC 16-22-3-2
Acquisition of real and personal property for hospital purposes
Sec. 2. (a) The governing board may purchase, construct, remodel,repair, enlarge, or acquire buildings and real or personal property forhospital purposes, upon terms and conditions acceptable to the board.
(b) The governing board may use hospital funds if adequateprovision is made for working capital and other known andanticipated hospital needs.
As added by P.L.2-1993, SEC.5. Amended by P.L.56-1995, SEC.6;P.L.91-2002, SEC.7 and P.L.100-2002, SEC.8.
IC 16-22-3-3
Lease of property
Sec. 3. (a) The governing board may lease real or personalproperty, with or without an option to purchase, on reasonable termsand conditions. If a lease agreement gives the hospital an option topurchase the property and if any part of the lease rental is to be
applied on the purchase price if the option is exercised, theagreement shall be treated as a purchase and is subject to this chapterand other Indiana laws relating to purchases by county hospitals.
(b) The governing board may authorize the purchase or lease ofa hospital building from the authority or an authority referred to inIC 5-1-16-1.
As added by P.L.2-1993, SEC.5. Amended by P.L.43-1993, SEC.19.
IC 16-22-3-4
Equipment and supplies acquisitions
Sec. 4. The governing board may purchase or acquire materials,services, equipment, and supplies required to operate and maintainthe hospital at prices the board considers reasonable.
As added by P.L.2-1993, SEC.5.
IC 16-22-3-5
Bids, proposals, or quotations submitted by trust
Sec. 5. (a) This section applies to the award of a contract underthis chapter for the procurement of property by acceptance of bids,proposals, or quotations.
(b) A bid, proposal, or quotation submitted by a trust (as definedin IC 30-4-1-1(a)) must identify each:
(1) beneficiary of the trust; and
(2) settlor empowered to revoke or modify the trust.
As added by P.L.2-1993, SEC.5.
IC 16-22-3-6
Contracts for services
Sec. 6. The governing board may contract for the followingservices on terms and conditions the governing board findsreasonable:
(1) The services of consultants, architects, engineers, or otherprofessionals, including shared services or purchasingorganizations.
(2) Services reasonably required to operate and maintain thehospital, including the management of the hospital.
As added by P.L.2-1993, SEC.5.
IC 16-22-3-7
Claims
Sec. 7. Claims against the hospital must be allowed and approvedby the governing board before payment by the disbursing officer.However, the board may, subject to review and approval at theboard's next regular meeting, authorize the following:
(1) Compensation of hospital employees upon certification ofpayrolls by the executive director.
(2) Payment of invoices for materials, services, equipment, andsupplies required for the operation and maintenance of thehospital upon certification by the executive director of thefollowing: (A) The invoices are true and correct.
(B) The items were ordered and received by the hospital.
The claim or invoice furnished by the supplier need not contain thecertificate provided for in IC 5-11-10-1.
As added by P.L.2-1993, SEC.5.
IC 16-22-3-8
Executive director
Sec. 8. The governing board shall appoint an executive director asthe administrative head of the hospital. The executive director:
(1) is the executive agent of the board in the administration ofthe board's policies;
(2) is the liaison officer between the board and the medicalstaff;
(3) shall employ hospital personnel; and
(4) has the other powers and duties delegated to the executivedirector by the board or specifically assigned to the executivedirector in this article.
As added by P.L.2-1993, SEC.5.
IC 16-22-3-9
Medical staff appointment; eligibility; standards and rules; staffself-government
Sec. 9. (a) The governing board may determine appointments andreappointments to the medical staff and delineate privileges of themembers of the medical staff.
(b) All licensed physicians are eligible for membership on themedical staff of the hospital, but the board may establish and enforcereasonable standards and rules concerning the qualifications for thefollowing:
(1) Admission to the medical staff.
(2) Practice in the hospital.
(3) Retention of membership.
(4) The granting of medical staff privileges within the hospital.
(c) The standards and rules described in subsection (b) may notdiscriminate against a licensed physician of any school of medicinebut may, in the interest of good patient care, consider the applicant'spostgraduate medical education, training, experience, and other factsconcerning the applicant that may affect the physician's professionalcompetence. The rules may include a requirement for the following:
(1) The submission of proof that a medical staff member hasqualified as a health care provider under IC 16-18-2-163.
(2) The performance of patient care and related duties in amanner that is not disruptive to the delivery of quality medicalcare in the hospital setting.
(3) Standards of quality medical care that recognize the efficientand effective utilization of hospital resources as developed bythe medical staff.
(d) The medical staff shall originate and the board must approvebylaws and rules for self-government. The bylaws must provide for
a hearing for a physician whose medical staff membership themedical staff has recommended for termination.
As added by P.L.2-1993, SEC.5.
IC 16-22-3-10
Personnel; compensation; policies
Sec. 10. Upon the recommendation of the executive director, agoverning board shall do the following:
(1) Fix the compensation, including incentives for productivity,of all hospital employees.
(2) Adopt personnel and management policies consistent withthe governing boards of other hospitals in Indiana.
As added by P.L.2-1993, SEC.5.
IC 16-22-3-11
Permissible personnel programs and policies
Sec. 11. A governing board may do the following:
(1) Adopt an employee benefit program that may include avacation policy and employee discounts.
(2) Authorize expenditure of hospital funds for payment ofadvertising and placement fees for personnel and physicians.
(3) Expend hospital funds in an amount not to exceed one-halfpercent (0.5%) of hospital revenues for the preceding calendaryear for a program that directly contributes to the productivityor morale of personnel, volunteers, or physicians. However, thissubdivision does not apply to:
(A) an employee benefit program under subdivision (1); or
(B) an employee compensation arrangement, including aproductivity bonus.
(4) Adopt a plan that provides for hospital employee sicknessor accident disability and contract for and purchase insuranceplans from an insurance company licensed to transact businessin Indiana.
(5) Contract for and purchase adequate pension and retirementplans for hospital personnel from the public employees'retirement fund of Indiana or from any company authorized todo such business in Indiana.
(6) Enter into deferred compensation agreements withemployees and other contractual personnel and fund deferredobligations by contracting with insurance companies licensedto transact business in Indiana.
(7) Expend hospital funds to pay dues of the executive directorand department heads for memberships in local, state, ornational hospital or professional associations or organizationsthat the board determines are of direct benefit to the hospital.
(8) Establish and operate employee registries for part-time ortemporary hospital employees.
(9) Pay a part or all of the costs of these plans out of hospitalfunds.
(10) Expend hospital funds for reasonable expenses incurred by
persons and their spouses who are interviewed for employmentor for medical staff appointment and for reasonable movingexpenses for the persons and their spouses if employed orappointed to the hospital medical staff.
(11) Expend hospital funds, advance tuition payments, orestablish a tuition refund program for the education orprofessional improvement of nurses and other professional ortechnical employees of the hospital for inservice training andattending seminars or other special courses of instruction whenthe board determines that the expenditures directly benefit thehospital.
(12) Conduct business in a state adjacent to Indiana.
As added by P.L.2-1993, SEC.5. Amended by P.L.56-1995, SEC.7;P.L.35-1997, SEC.6.
IC 16-22-3-12
Hospital financial records; annual report
Sec. 12. (a) The state board of accounts:
(1) shall approve or prescribe the manner in which the hospitalrecords are kept;
(2) except as provided in subsection (c), shall audit the recordsof the hospital; and
(3) may approve forms for use by all hospitals or groups ofhospitals.
(b) The governing board may use the calendar year or a fiscal yearfor maintaining hospital financial records. A hospital that receives afinancial subsidy from the county for hospital operations, excludingmental health or ambulance services, during the preceding calendaror fiscal year must file with the county executive and the countyfiscal body an annual report showing the income and expenses of theoperating fund for the preceding calendar or fiscal year by majorclassification according to the chart of accounts approved by the stateboard of accounts. If the hospital uses a calendar year formaintaining financial records, the report must be filed not later thanthe last Monday in March of each year. If the hospital uses a fiscalyear for maintaining financial records, the report must be filed notlater than ninety (90) days after the close of the fiscal year. Theannual report shall be published one (1) time. Hospital financialrecords may be kept in hard copy, on microfilm, or via another datasystem acceptable to the state board of accounts.
(c) A hospital may elect to have an audit required undersubsection (a) performed by an independent certified publicaccounting firm that is experienced in hospital matters. The auditreport must be kept on file at the hospital and a copy must beprovided to the state board of accounts. The audit engagement by acertified public accounting firm must be performed pursuant toguidelines established by the state board of accounts.
(d) If a hospital elects to use an independent certified publicaccounting firm under subsection (c), the hospital shall providewritten notice to the state board of accounts not less than one
hundred eighty (180) days before the beginning of the hospital'sfiscal year in which the hospital elects to be audited by anindependent certified public accounting firm. For that hospital fiscalyear, and each following fiscal year until the hospital terminates thehospital's use of an independent certified public accounting firm, thehospital shall use an independent certified public accounting firmunder subsection (c). A hospital shall terminate its use of anindependent certified public accounting firm under subsection (c) byproviding written notice to the state board of accounts not less thanone hundred eighty (180) days before the beginning of the hospital'sfiscal year in which the hospital elects not to be audited by anindependent certified public accounting firm. For that hospital fiscalyear, and each following fiscal year until the hospital elects to use anindependent certified public accounting firm as provided under thissubsection, the hospital must be audited by the state board ofaccounts for purposes of section 12(a)(2) of this chapter. For anyfiscal year in which the hospital does not use an independentcertified public accounting firm under subsection (c), the hospitalshall be audited by the state board of accounts.
As added by P.L.2-1993, SEC.5. Amended by P.L.91-2002, SEC.8and P.L.100-2002, SEC.9.
IC 16-22-3-13
Patient charges; building and improvement funds
Sec. 13. (a) The governing board shall establish reasonablecharges for patient care and other hospital services for the residentsof the county and may provide patient care and other hospitalservices to nonresidents of the county upon terms and conditions theboard establishes by rule.
(b) The governing board may give appropriate discounts ofcharges to patients.
(c) In establishing charges, the governing board may include areasonable charge for depreciation and obsolescence of property,plant, and equipment.
(d) The board may periodically transfer all or part of the chargesfor depreciation and obsolescence to a fund to be used by and at thediscretion of the board only for the purpose of building, remodeling,repairing, replacing, or making additions to the hospital building orbuildings. However, in any year in which there is a tax levy for thegeneral operation and maintenance of the hospital, the board shallnot make a transfer to the fund. In an emergency, the board mayborrow from the fund for the operating fund of the hospital and shallreimburse the fund within two (2) years.
(e) The authority granted to establish the fund does not limit thepower and authority of the board, the county executive, the countyfiscal body, or other units of government to finance hospitalbuildings by other methods.
As added by P.L.2-1993, SEC.5.
IC 16-22-3-14 Hospital funds; authorized transfers
Sec. 14. (a) The governing board shall take, hold, disburse, anddispose of, for the benefit of the hospital, all real or personalproperty or other property that is a part of hospital funds inaccordance with this article.
(b) The board may accept gifts, devises, bequests, or grants uponthe conditions directed by the donor if the conditions are not contraryto law. However, if the hospital was constructed by a county buildingauthority under IC 36-9-13, the powers of the board do not includethose powers vested by IC 36-9-13 in the building authority.
(c) The board may transfer a part of the hospital funds to anonprofit corporation organized under IC 23-7-1.1 (before its repealon August 1, 1991) or IC 23-17 that is:
(1) a hospital foundation organized and operated for theexclusive benefit of the hospital; or
(2) a related or controlled entity;
if adequate provision is made for working capital and other knownand anticipated hospital needs.
(d) If a transfer includes public funds of the hospital, the publicfunds transferred to the foundation or related or controlled entity maybe audited by the state board of accounts unless:
(1) the hospital foundation or related or controlled entity filesannually with the treasurer of the hospital a copy of an auditreport prepared by an independent certified public accountant;and
(2) the audit report is on file at the hospital and is madeavailable to the state board of accounts.
As added by P.L.2-1993, SEC.5.
IC 16-22-3-15
Patient refunds fund
Sec. 15. The governing board may establish a special fund forpatient refunds in an amount not to exceed five thousand dollars($5,000) if the money is deposited in a checking account in adepository designated for the deposit of money of the hospital andchecks are issued by the person designated by the board. The specialfunds are supplemental to those otherwise permitted by law.
As added by P.L.2-1993, SEC.5.
IC 16-22-3-16
Deposit of funds
Sec. 16. Money in the hospital funds shall be deposited in themanner determined by the governing board.
As added by P.L.2-1993, SEC.5.
IC 16-22-3-17
Disposition and encumbrance of real and personal property;immunity from liability
Sec. 17. (a) The governing board may mortgage all or part of aninterest in real or personal property owned by the hospital and may
enter into a sale and leaseback of hospital property on terms andconditions acceptable to the board.
(b) The following property may be disposed of on terms andconditions acceptable to the board:
(1) Real or personal property subject to a mortgage or sale andleaseback arrangement.
(2) Real or personal property in which the hospital has anownership interest as a participant in an organization or activitydescribed in section 1(b) of this chapter.
(3) An arrangement in which at least two (2) hospitalsparticipate for the provision of any hospital or related services,including participation or ownership as a tenant in commonwith other hospitals.
(c) Except as provided in subsection (b), real or personal propertyor an interest in real or personal property owned by the hospital maybe disposed of as follows:
(1) Personal property:
(A) that has limited or no use to the hospital; and
(B) that:
(i) has value not exceeding fifteen thousand dollars($15,000); or
(ii) is traded upon purchase of other personal property;
may be disposed of without the necessity of advertising,auctioning, or requesting bids.
(2) Real property that the board considers no longer necessaryfor hospital purposes shall be sold after the following occur:
(A) The property is appraised by three (3) disinterestedowners of taxable real property of the county.
(B) The board publishes notice of the sale one (1) time atleast seven (7) days before the date of the sale.
(C) The sale is approved by the commissioners.
The board shall determine the time, terms, and conditions of thesale of property.
(3) Personal property other than property described insubdivision (1) shall be sold at public auction. The board shallpublish notice of the sale one (1) time at least seven (7) daysbefore the date of the sale. If sealed bids are solicited in thepublished notice of the sale, the bids must be opened in publicon the date and time of the sale to satisfy the public auctionrequirement.
Upon the sale of real property under this subsection and the paymentof the purchase price, the board and the commissioners shall executea deed of conveyance to the purchaser. The proceeds of all sales area part of the hospital funds to be held and used for the use andbenefit of the hospital.
(d) If a trust (as defined in IC 30-4-1-1(a)) submits a bid in a saleor lease conducted under subsection (b), (c), or (e), the bid mustidentify each:
(1) beneficiary of the trust; and
(2) settlor empowered to revoke or modify the trust. (e) If it is determined by the board, the county executive, and thecounty fiscal body, by joint resolution, that:
(1) the hospital should cease doing business as a countyhospital;
(2) the hospital should be terminated and dissolved; and
(3) the entire hospital building or buildings should be sold orleased to a for-profit corporation, partnership, or entity;
the proposed sale or lease shall be considered publicly, and theboard, the county executive, and the county fiscal body shall followthe procedures of IC 16-22-6-18 concerning notice and hearing onthe terms and provisions of the sale or lease. The terms andprovisions of the sale or lease shall be determined by the board, thecounty executive, and the county fiscal body and shall be presentedat a hearing as required by IC 16-22-6-18.
(f) An individual who is a:
(1) board member in the member's capacity as a board member;or
(2) member of:
(A) the county executive; or
(B) the county fiscal body;
is immune from potential or actual liability attributable to theindividual with respect to a sale or lease under subsection (e).
(g) In the event of a sale or lease under this section, the county isnot liable for:
(1) any liabilities of the hospital that:
(A) were incurred on or before; or
(B) are incurred at any time after;
the sale or lease date; or
(2) any future liabilities incurred by the successor entity;
unless otherwise agreed to by the county at the time of the sale orlease in the sale or lease document. Any liabilities described in thissubsection are the responsibility of the purchasing or leasing entity,unless agreed to otherwise in the sale or lease document.
(h) After the hearing on the proposed sale or lease, if it isdetermined by the board, the county executive, and the county fiscalbody that the sale or lease should proceed, the hospital building orbuildings shall be sold or leased in accordance with proposed termsand provisions.
(i) The board, the county executive, and the county fiscal bodyshall execute:
(1) a deed of conveyance upon payment of the purchase priceif the buildings are sold; or
(2) a lease upon terms the board, the county executive, and thecounty fiscal body consider reasonable if the buildings areleased.
(j) The proceeds of the sale or lease of all of the hospital buildingsmust first be applied to outstanding indebtedness attributable to thehospital buildings. The commissioners shall deposit the balance ofthe proceeds from the sale or lease and any property in the hospitalfund in: (1) a nonexpendable interest bearing trust fund from whichclaims are paid for county hospital claims for the indigent orany other fund that the county executive and county fiscal bodydesignate; or
(2) the county general fund.
As added by P.L.2-1993, SEC.5. Amended by P.L.35-1997, SEC.7;P.L.231-1999, SEC.13.
IC 16-22-3-18
Transfer of assets to nonprofit corporation or related hospitalentity; immunity from liability
Sec. 18. (a) If the board, the county executive, and the countyfiscal body determine that the community the hospital serves can bestbe provided with hospital services through management,enlargement, remodeling, or renovation of the hospital by a nonprofithospital corporation, the board, the county executive, and the countyfiscal body may agree by joint resolution, and after following theprocedures of IC 16-22-6-18 concerning notice and hearing, totransfer all of the assets of the hospital to a nonprofit corporation.
(b) The transfer of the hospital assets to the nonprofit corporationmust be on terms and conditions and for consideration as appearsreasonable. The transfer agreement must require the nonprofitcorporation to assume and agree to pay any indebtedness attributableto the hospital buildings. The size, composition, and qualificationsof the membership and the board of directors of the nonprofitcorporation must be set forth in the corporation's articles ofincorporation.
(c) An individual who is a:
(1) board member, in the member's capacity as a board member;or
(2) member of:
(A) the county executive; or
(B) the county fiscal body;
is immune from potential or actual liability attributable to theindividual with respect to a transfer under subsection (b).
(d) In the event of a transfer under this section, the county is notliable for:
(1) any liabilities of the hospital that:
(A) were incurred on or before; or
(B) are incurred at any time after;
the transfer date; or
(2) any future liabilities incurred by the successor entity;
unless otherwise agreed to by the county at the time of the transferin the transfer document. Any liabilities described in this subsectionare the responsibility of the entity to which the assets weretransferred, unless agreed to otherwise in the transfer document.
(e) The board, the county executive, and the county fiscal bodyshall execute a deed of conveyance and other documents necessaryto transfer the assets of the hospital to the nonprofit corporation. Thecounty executive shall deposit the proceeds from the transfer in: (1) a nonexpendable interest bearing trust fund from whichclaims are paid for county hospital claims for the indigent orany other fund that the county executive and county fiscal bodydesignate; or
(2) the county general fund.
(f) If the nonprofit corporation described in this section ceasesdoing business, is terminated, or is dissolved, funds or propertyremaining after payment of all lawful debts become the property ofthe county. A provision to this effect must be included in the articlesof incorporation of the nonprofit corporation and may not beamended or deleted without the written approval of thecommissioners.
(g) The board may sell, convey, or otherwise transfer real orpersonal property from the hospital to an entity related to orcontrolled by the hospital for constructing buildings on behalf of thehospital. The transfer is not subject to the notice and appraisalrequirements under this section. The board may make the transferupon terms and conditions the board considers appropriate. Theboard shall issue a deed of conveyance to the transferee.
As added by P.L.2-1993, SEC.5. Amended by P.L.35-1997, SEC.8.
IC 16-22-3-18.5
Conveyance of real or personal property to state authority forlease back to hospital
Sec. 18.5. (a) Notwithstanding any requirement or restriction inthis chapter on the transfer of real or personal property of thehospital, this section applies if the board determines to obtainfinancing for capital improvements through the state authority.
(b) The board may convey real or personal property of thehospital by sale or lease to the state authority for lease back to thehospital from the state authority.
As added by P.L.43-1993, SEC.13.
IC 16-22-3-19
Medical care trust board
Sec. 19. (a) This section applies to a medical care trust boardappointed by a county executive to govern a nonexpendable trustfund established under section 17(j) or 18(e) of this chapter.
(b) The county executive may adopt an ordinance providing thatthe medical care trust board is subject to this section.
(c) After the effective date of an ordinance adopted undersubsection (b), the medical care trust board may do the following:
(1) Approve and the treasurer may disburse payment of a claimagainst the trust for payment of hospital and medical servicesprovided to an indigent person and reasonable administrativeexpenses, without the necessity of filing a claim with the countyauditor for approval by the county executive.
(2) Invest the funds of the trust:
(A) in accordance with IC 5-13-9 and guidelines adopted bythe board under IC 5-13-9-1; and (B) without being subject to guidelines adopted by thecounty executive under IC 5-13-9-1.
As added by P.L.2-1993, SEC.5. Amended by P.L.35-1997, SEC.9.
IC 16-22-3-20
Investment of hospital funds
Sec. 20. (a) As used in this section, "financial institution" has themeaning set forth in IC 5-13-4-10.
(b) The board may invest money in the hospital funds within thecounty or the state as the board determines. The money may beinvested in the following:
(1) Any account paying interest and subject to withdrawal bynegotiable orders of withdrawal, unlimited as to amount ornumber (NOW accounts).
(2) Passbook savings accounts.
(3) Certificates of deposit.
(4) Money market deposit accounts.
(5) Any interest bearing account that is authorized to be set upand offered by a financial institution or brokerage firmregistered and authorized to do business in Indiana.
(6) Repurchase or resale agreements involving the purchase andguaranteed resale of any interest bearing obligations issued orfully insured or guaranteed by the United States or any UnitedStates government agency in which type of agreement theamount of money must be fully collateralized by interestbearing obligations as determined by the current market valuecomputed on the day the agreement is effective.
(7) Mutual funds offered by a financial institution or brokeragefirm registered and authorized to do business in Indiana.
(8) Securities backed by the full faith and credit of the UnitedStates Treasury or fully insured or guaranteed by the UnitedStates or any United States government agency.
(9) Pooled fund investments for participating hospitals offered,managed, and administered by a financial institution orbrokerage firm registered or authorized to do business inIndiana.
This subsection does not prevent the board from using money in thehospital funds to capitalize projects undertaken under section 1(b)and 1(c) of this chapter.
(c) Any interest derived from an investment under subsection (b)becomes a part of the hospital funds invested. Interest derived fromthe investment of money raised by bonded or other indebtedness inexcess of funds needed for hospital buildings may be applied by thegoverning board to the appropriate bond redemption, interest, orsinking fund.
As added by P.L.2-1993, SEC.5.
IC 16-22-3-21
Insurance
Sec. 21. (a) The governing board may contract for and purchase,
for the protection of the hospital, all types of insurance provided forin the Indiana insurance law in amounts and under terms andconditions the board considers reasonable and necessary. Theinsurance may include liability or malpractice coverage for themembers of the board, the officers, employees, volunteers, andmembers of medical staff committees while performing services forthe hospital. The board may, for the purpose of acquiring malpracticecoverage, assist in the formation of a nonassessable mutual insurancecompany under IC 27-1-6 and IC 27-1-7-19.
(b) The governing board of a hospital organized or operated underthis article may enter into a group purchasing agreement to purchasemedical malpractice insurance with the following:
(1) One (1) or more hospitals organized or operated under thisarticle.
(2) One (1) or more hospitals organized or operated underIC 16-23.
As added by P.L.2-1993, SEC.5. Amended by P.L.91-2002, SEC.9and P.L.100-2002, SEC.10.
IC 16-22-3-22
Leases
Sec. 22. (a) The governing board may lease a part of the hospitalbuildings if the board determines that the use of the leased premiseswill aid the hospital in the performance of the hospital's services. Alease must:
(1) be in writing;
(2) be for definite periods; and
(3) require payment of lease rentals at least monthly.
(b) If the board enters into a lease or sublease contract with thestate authority, the board may pledge as security for payment underthe contract the funds that the governing board receives from a taxlevy under section 27 of this chapter.
As added by P.L.2-1993, SEC.5. Amended by P.L.43-1993, SEC.14.
IC 16-22-3-23
Related facilities and services
Sec. 23. The governing board may do the following:
(1) Permit the hospital to provide services for the mentallydisordered under IC 12-29 and may limit the services to shortterm care.
(2) Contract for or establish and maintain a training school fornurses and for paramedical personnel, with a curriculum thatconforms to the requirements of the Indiana state board ofnursing or other appropriate board.
(3) Acquire suitable facilities for housing graduate and studentnurses in training or employed by the hospital.
(4) Provide suitable facilities for the temporary detention andexamination of persons whose sanity is being officially inquiredinto preparatory to admission to hospitals for the insane.
However, a person known to be dangerously insane or who has been
adjudged insane shall not be confined in or about the hospital unlessspecific facilities necessary for the temporary confinement of thesepatients, separate and apart from the other patients, have beenprovided in the hospital.
As added by P.L.2-1993, SEC.5.
IC 16-22-3-24
Legal status of board
Sec. 24. The board is a body corporate and politic with the styleof "The Board of Trustees of __________ Hospital", to include thefull name of the hospital. In that name and capacity, the board maydo the following:
(1) Sue and be sued and plead and be impleaded but all actionsagainst the board must be brought in the circuit or superiorcourts of the county in which the hospital is located.
(2) Possess the real and personal property of the hospital andthe hospital funds in the hospital's corporate name for thehospital's use and benefit.
(3) Exercise the other powers, duties, and responsibilities setforth in this article.
As added by P.L.2-1993, SEC.5.
IC 16-22-3-25
Eminent domain powers
Sec. 25. If the governing board and the owners of real propertyneeded for hospital purposes cannot agree on the price to be paid forthe real property, the board may report the facts to the commissionerswho have the power of eminent domain, and condemnationproceedings shall be instituted by the county executive andprosecuted in the name of the county where the hospital is located orto be located by an attorney representing the county.
As added by P.L.2-1993, SEC.5.
IC 16-22-3-26
Loans; sale or factor of accounts receivable; federal loans orguaranties
Sec. 26. (a) The governing board may obtain loans for hospitalexpenses in amounts and on terms and conditions agreeable to theboard and may secure the loans by pledging accounts receivable orother security in hospital funds. If the board enters into a loanagreement for the borrowing of funds from the state authority, theboard may pledge as security for payment under the agreement thefunds the board receives from a tax levy under section 27 of thischapter.
(b) The board may sell or factor accounts receivable on terms andconditions agreeable to the board.
(c) A county, city, or health and hospital corporation owning andmaintaining or leasing at least one (1) hospital or related facilities,a county hospital association under IC 16-22-6, and a buildingauthority under IC 36-9-13 may enter into an agreement with the
United States or a department, an agency, or an instrumentality of theUnited States with respect to loans or guaranties for hospital orrelated purposes and may borrow money on the terms and conditionsof the agreement.
(d) The loans may be:
(1) evidenced by bonds, notes, contractual agreements, or otherevidences of indebtedness;
(2) secured in whole or in part by:
(A) pledge of the full faith and credit as a general obligationof the borrower;
(B) the income and revenues of the hospital or relatedfacilities;
(C) rental from the lease of hospital facilities; or
(D) any combination of clauses (A) through (C); and
(3) additionally secured by a mortgage or deed of trust of all orpart of the real or personal property, or both, of the hospital.
(e) Bonds, notes, or other evidences of indebtedness issued inconnection with a federal loan under this section may be sold anddelivered at private sale without the necessity of public sale or publicoffering.
As added by P.L.2-1993, SEC.5. Amended by P.L.43-1993, SEC.15.
IC 16-22-3-27
Tax levy support of hospital
Sec. 27. (a) The governing board may request support from thecounty, either by appropriation from the county general fund or bya separate tax levy, by filing with the county executive on or beforeAugust 1 a written budget of the amount estimated to be required tomaintain, operate, or improve the hospital for the ensuing year.
(b) If the county provides a direct financial subsidy to a hospitalfrom a tax levy at the time the board exercises the powers undersection 1(b) of this chapter, the board may not provide the fundsfrom a tax levy to an entity created under section 1(b) of this chapterfor more than three (3) years. After three (3) years, all funds, withinterest, must be repaid within ten (10) years.
(c) If the board enters into a lease or sublease contract or a loanagreement with the state authority, the board may request the countyto adopt a separate tax levy to support the board's obligation to makepayments under that contract or agreement.
As added by P.L.2-1993, SEC.5. Amended by P.L.43-1993, SEC.16.
IC 16-22-3-27.5
Payment of lease or loan from taxes
Sec. 27.5. (a) This section applies in a county when:
(1) the board has authorized the hospital to enter into a lease orsublease contract or a loan agreement with the state authorityunder this chapter; and
(2) the lease or sublease contract or the loan agreement providesthat a portion of the lease or loan payment is to be paid fromtaxes. (b) The county council or the city-county council in the case of acounty with a consolidated city shall annually levy a tax that issufficient to produce each year along with other available funds anamount that is sufficient to pay the portion of the lease or loanpayment that is required to be paid from taxes.
(c) The board shall transfer the following to a fund to be used topay the portion of the lease or loan payment that is not required to bepaid from taxes:
(1) Any net revenue of the hospital that is required to be usedfor the lease or loan payment.
(2) Any net revenue of the hospital that is required to beretained as a reserve for a purpose that the board determines ifthe board determines that the money is not needed in reserve foradditional construction, equipment, betterment, maintenance, oroperation.
(d) In fixing and determining the levy that is necessary for thelease or loan payment that is payable from taxes, the county councilshall consider the amounts that have been transferred from the netrevenues of the hospital under subsection (c).
(e) If funds other than taxes are not available to pay the portion ofthe lease or loan payment that is required to come from taxes, acounty is not relieved from the county's obligation to pay from taxesany lease or loan payment that is payable from taxes.
(f) The tax levy provided in this section is reviewable in themanner that other tax levies are reviewable to ascertain that the levyis sufficient to produce the amount of the lease or loan payment thatis required to be paid from taxes.
(g) One-half (1/2) of the annual lease or loan payment shall bepaid semiannually to the state authority after the semiannualsettlement of tax collections.
As added by P.L.43-1993, SEC.17. Amended by P.L.56-1995, SEC.8.
IC 16-22-3-28
Other powers of board
Sec. 28. (a) The governing board may enter into agreements withcredit card companies or organizations authorized to do business inIndiana and may accept credit card payments from patients forservices provided.
(b) The board may, in the establishment and maintenance ofhospital records, use automated data processing systems andpurchase, lease, operate, or contract for the use of automated dataprocessing equipment subject to section 6 of this chapter and section22 of this chapter.
(c) In addition to IC 5-14-1.5-6.1(b), a hospital organized oroperated under this article may hold executive sessions to do any ofthe following:
(1) Discuss and prepare bids, proposals, or arrangements thatwill be competitively awarded among health care providers.
(2) Discuss recruitment of health care providers.
(3) Discuss and prepare competitive marketing strategies. (4) Engage in strategic planning.
(5) Participate in a motivational retreat with staff or personnel,if the hospital does not conduct any official action (as definedin IC 5-14-1.5-2(d)).
(d) IC 5-14-1.5-5, IC 5-14-1.5-6.1, and IC 5-14-1.5-7 apply toexecutive sessions held under subsection (c).
(e) A hospital organized or operated under this article may holdconfidential, until the information contained in the records isannounced to the public, records of a proprietary nature that ifrevealed would place the hospital at a competitive disadvantage, suchas the following:
(1) Terms and conditions of preferred provider arrangements.
(2) Health care provider recruitment plans.
(3) Competitive marketing strategies regarding new servicesand locations.
As added by P.L.2-1993, SEC.5. Amended by P.L.35-1997, SEC.10;P.L.91-2002, SEC.10 and P.L.100-2002, SEC.11.
IC 16-22-3-29
Safekeeping of patient valuables
Sec. 29. (a) The governing board may establish a policy withregard to providing a place for the safekeeping of valuable personalproperty of patients. The patients or the responsible relatives of thepatients shall be notified by posting a notice in a public andconspicuous place or manner at the admitting desk or office in thehospital that a place is provided.
(b) If the valuable personal property is not delivered to the personin charge of the place for deposit, the hospital and the hospital'sofficers, agents, or employees are not liable for any loss or damageto the property, unless an emergency admission occurs and thepatient is unable to deliver the valuable personal property to theplace for deposit and no responsible relative is present.
(c) If the personal property is delivered for safekeeping to theperson in charge of the office for deposit, the hospital is not liable forloss or damage to the property from any cause in an amountexceeding six hundred dollars ($600), even if the property is ofgreater value.
As added by P.L.2-1993, SEC.5.
IC 16-22-3-30
Liberal construction of board powers
Sec. 30. The powers of the board described in this chapter shallbe liberally construed to effect the purposes of this article and toenable the hospital to be maintained and operated as a first classhospital.
As added by P.L.2-1993, SEC.5.