CHAPTER 1. CITY HOSPITALS IN THIRD CLASS CITIES
IC 16-23
ARTICLE 23. MUNICIPAL AND OTHER TYPES OFHOSPITALS
IC 16-23-1
Chapter 1. City Hospitals in Third Class Cities
IC 16-23-1-1
Application of chapter
Sec. 1. This chapter applies to the following:
(1) Each third class city that:
(A) adopted IC 16-12.2-5 (before its repeal on July 1, 1993);or
(B) adopts this chapter;
by ordinance.
(2) Each city to which IC 16-12.2-5 applied before September1, 1981.
As added by P.L.2-1993, SEC.6.
IC 16-23-1-2
Appropriations and tax levies; conditions
Sec. 2. The city and county officers shall appropriate sufficientmoney annually and levy a tax annually on the taxable property inthe county to meet a deficiency that exists, or is reasonablyanticipated by the board of directors of the hospital, to maintain,equip, and operate the city hospital for the ensuing calendar year ifthe hospital meets the following conditions:
(1) Is established, maintained, and operated inside or within two(2) miles of and in the same county as a city subject to thischapter.
(2) Is established at a time when there is no other city, county,or public hospital maintained and operated in that county.
(3) Is open to all residents of the county without discriminationin the rates, facilities, and services.
As added by P.L.2-1993, SEC.6.
IC 16-23-1-3
Governing board; members
Sec. 3. (a) A governing board shall manage the hospital. Theboard consists of seven (7) members, all of whom must be qualifiedvoters of the county in which the hospital is located.
(b) One (1) or two (2) of the members may be a licensed andpracticing physician. One (1) member may be a registered nurse.
(c) The governing board is a separate legal entity under the nameand style of "Board of Directors of _________ Hospital, _________,Indiana".
As added by P.L.2-1993, SEC.6. Amended by P.L.91-2002, SEC.15and P.L.100-2002, SEC.16.
IC 16-23-1-4
Appointing board; members; oath
Sec. 4. (a) Appointments to the governing board shall be made byan appointing board consisting of the following:
(1) The city executive of the city in which the hospital islocated.
(2) A member of the county fiscal body to be chosen by thecounty fiscal body of the county.
(3) A member of the county executive to be chosen by thecounty executive at the county executive's regular Januarymeeting each year.
(b) The members of the appointing board shall take and subscribean oath for the honest and faithful performance of the members'duties. The oath shall be filed in the office of the county auditor. Theappointing board serves without bond.
As added by P.L.2-1993, SEC.6.
IC 16-23-1-4.1
Governing board membership limitation
Sec. 4.1. A member of an appointing authority for the governingboard of a hospital established and operated under this article maynot serve on the hospital's governing board.
As added by P.L.100-2002, SEC.17.
IC 16-23-1-5
Appointing board; meetings
Sec. 5. (a) The appointing board shall hold regular meetings toappoint members of the governing board on the third Monday ofJanuary in each year, but may adjourn from day to day untilappointments are made for all expired or vacant memberships on thegoverning board.
(b) Except as provided in section 7 of this chapter, a vacancyexisting on the governing board may be filled at a special meetingcalled by the county auditor or by any two (2) members of theappointing board, on five (5) days notice to all members not joiningin the call or without notice when all of the appointing board arepresent.
(c) All meetings of the appointing board shall be held at thecounty executive's office unless by unanimous consent the appointingboard determines to hold a meeting in the city executive's office.
As added by P.L.2-1993, SEC.6.
IC 16-23-1-6
Board of directors; conflicts of interest
Sec. 6. An individual is not prohibited from serving as a memberof the board of directors 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 board
and provide a copy to the state board of accounts. The member shallabstain from voting on any matter that affects the interest or profit.
As added by P.L.2-1993, SEC.6.
IC 16-23-1-7
Governing board; vacancies; candidates
Sec. 7. Whenever a vacancy occurs on the governing board, theexisting governing board shall submit a list of three (3) candidatesfor each vacancy to be filled to the appointing authority. Eachcandidate submitted by the governing board must meet therequirements concerning board members.
As added by P.L.2-1993, SEC.6.
IC 16-23-1-8
Governing board; vacancies; appointments
Sec. 8. (a) For each vacancy, the appointing authority may do one(1) of the 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.
(b) If the appointing authority requests and receives a second listof three (3) candidates under subsection (a)(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.
(c) The appointment for a vacancy shall be made within sixty (60)days of the submission of the initial list of candidates under section7 of this chapter.
As added by P.L.2-1993, SEC.6.
IC 16-23-1-9
Governing board; terms
Sec. 9. (a) The directors shall be appointed on the third Mondayof January.
(b) The initial terms of the governing board are as follows:
(1) Two (2) members for one (1) year.
(2) Two (2) members for two (2) years.
(3) One (1) member for three (3) years.
(4) Two (2) members for four (4) years.
(c) Each subsequent term is for four (4) years.
(d) The term of each member begins February 1 in the year ofappointment at the expiration of the member's predecessor's term and
continues four (4) years and until a successor is appointed andqualified. However, an interim member chosen to fill a vacancybegins tenure at the time specified in the member's certificate ofappointment and serves the unexpired term of the member theinterim member succeeds.
As added by P.L.2-1993, SEC.6.
IC 16-23-1-10
Governing board; time of appointments; continuation ofappointing board membership
Sec. 10. (a) The appointments of members of the hospitalgoverning board may not be made before the third Monday ofJanuary in the respective years and shall be made by the appointingboard.
(b) If the county executive in any year fails to appoint one (1) ofthe board's members to the appointing board for the current year, thecounty executive who served on the appointing board in thepreceding year, if the individual is still a member of the countyexecutive, continues as a member of the appointing board until thecounty executive makes the board's annual appointment.
As added by P.L.2-1993, SEC.6.
IC 16-23-1-11
Board of directors; certificates of appointment; oaths and bonds
Sec. 11. (a) The appointing board established under section 4 ofthis chapter shall issue a certificate of appointment to each memberof the board of directors chosen. The certificate shall be executed bya majority of the appointing board and attested by the county auditorwho shall act as secretary of the appointing board.
(b) Each member of the governing board shall execute and filewith the county recorder, including a copy in the office of the cityclerk-treasurer, an oath and a bond in the amount of two thousanddollars ($2,000) for the honest and faithful performance of themember's duties. The bonds are subject to approval by the cityexecutive. If a surety company bond is given, the cost of the bondshall be paid from hospital funds. The cost of recording the bond andoath shall also be paid from the proper hospital funds.
As added by P.L.2-1993, SEC.6.
IC 16-23-1-12
Governing board meetings; time and place; quorum
Sec. 12. (a) The governing board shall hold one (1) regularmeeting each month at a time and place to be fixed by the board. Themeeting must be held in a convenient place in the city in which thehospital is located. Special meetings of the board may be held onwritten notice by the president, the secretary, or any three (3)members of the board to the remaining members. Personalattendance at a meeting constitutes a waiver of notice.
(b) A majority of all members of the board constitutes a quorumfor the transaction of business at any regular or special meeting. A
majority vote of all members of the board is required on all questionsor business.
As added by P.L.2-1993, SEC.6.
IC 16-23-1-13
Treasurer; city clerk-treasurer
Sec. 13. (a) The city clerk-treasurer is ex officio treasurer of theboard of directors, unless the board appoints a separate treasurerunder section 14 of this chapter. The clerk-treasurer serves withoutadditional compensation and does not have a vote on any matter orquestion coming before the board.
(b) A certificate of official character and additional oath or bondis not required of the clerk-treasurer, but the city fiscal body, infixing the amount of the official bond as clerk-treasurer, shall takeinto consideration the amount of money under the clerk-treasurer'scontrol for hospital purposes, as well as other city funds.
As added by P.L.2-1993, SEC.6.
IC 16-23-1-14
Separate treasurer
Sec. 14. (a) If the governing board desires to have a separatetreasurer, the board shall adopt a resolution providing for a separatetreasurer for the hospital and the governing board. The resolutionmust be adopted at least one hundred (100) days before the beginningof a calendar year and takes effect the first day of the next calendaryear after the passage of the resolution. A true copy of the resolutionof the board shall be certified, within ten (10) days after adoption bythe board, to the city legislative body and shall be filed in the cityclerk-treasurer's office. The city legislative body shall approve ordisapprove the board's resolution, by ordinance or resolution of thecity legislative body, at the next regular meeting held after theresolution is adopted by the board and after the deposit of a copy ofthe resolution in the city clerk-treasurer's office. The failure of thecity legislative body to act at the next regular meeting is not a waiverof the right to do so, and the time provisions for the city legislativebody's action are directory and not mandatory. The board resolutionand city legislative body resolution or ordinance of approval must beadopted not later than November 1 of any given year to authorize theappointment of a separate treasurer for the board on January 1 of thefollowing year.
(b) Upon the adoption of an ordinance or a resolution undersubsection (a) by the city legislative body and the completion of theboard and city legislative body action, the governing board shallappoint a hospital treasurer to serve for the ensuing year in place ofthe city clerk-treasurer.
(c) The treasurer appointed each year may be a member of theboard or any other competent person residing in the county in whichthe hospital is situated. The treasurer shall subscribe an oath andexecute a bond in the amount required by the board for the properand honest performance of duties, to the approval of the hospital
board, with proper surety on the bond.
(d) The provision for a separate treasurer of the hospital and boardremains in effect without further proceedings of the board or council,unless the board and city legislative body restore the ex officio statusof the city clerk-treasurer for the board effective at the beginning ofthe next calendar year. The resolution of the board and resolution orordinance of the city legislative body also must be adopted not laterthan November 1 before the change takes effect.
(e) The board shall fix the separate treasurer's compensation in anamount not exceeding six hundred dollars ($600) each year. If thetreasurer is a member of the board, the compensation is in additionto the salary fixed for board members.
As added by P.L.2-1993, SEC.6.
IC 16-23-1-15
Duties of treasurer
Sec. 15. The treasurer shall receive, deposit, and pay out allmoney of the board and hospital as ordered and shall sign all checksor other evidences of indebtedness when authorized by board action.
As added by P.L.2-1993, SEC.6.
IC 16-23-1-16
Governing board officers
Sec. 16. (a) The governing board shall organize each year by theelection of officers at the regular February meeting or the first calledmeeting in that month. The officers of the board are president, vicepresident, secretary, and treasurer. The officers must be boardmembers, except that the board may appoint a separate treasurerfrom outside the board membership as provided by section 14 of thischapter.
(b) The officers serve from the date of election until February 1of the next year and until respective successors are elected andqualified.
(c) If a vacancy exists in any office at a time other than the datefor the annual election of officers, the governing board shall fill thevacancy for the unexpired term.
As added by P.L.2-1993, SEC.6.
IC 16-23-1-17
Duties of governing board officers
Sec. 17. (a) The president shall preside at the regular and specialmeetings of the governing board and shall perform all other dutiesthat are authorized or required by the board or the board's bylaws,rules, and regulations.
(b) The vice president shall discharge the duties of the presidentif any of the following occurs:
(1) The president is incapacitated or absent.
(2) There is a vacancy in the office of president.
(3) The president relinquishes the president's duties as presidingofficer at any meeting. (c) The secretary serves as executive officer of the board, actingfor the board and exercising the powers and performing the duties atboard meetings and during the intervals between meetings that theboard authorizes.
(d) At any meeting when only one (1) officer is present and theofficer relinquishes the officer's duties or when the president andvice president are both absent, the members present shall choose apresiding officer from the members in attendance for that meeting.
As added by P.L.2-1993, SEC.6.
IC 16-23-1-18
Compensation of governing board members and officers
Sec. 18. (a) The governing board shall, by resolution, fix thecompensation of the officers and board members in a reasonableamount and may fix a higher amount for the officers who performadditional duties outside board meetings. A certified copy of theresolution shall be submitted to the city fiscal body.
(b) The city fiscal body may approve or reject the compensationproposed by the board, but the city fiscal body may not increase ordecrease the amount fixed by the board.
(c) If the board's resolution is confirmed and the salaries areapproved by the city fiscal body, the compensation takes effect at thetime fixed in the resolution.
(d) The compensation of board members may be fixed on anannual basis or on a specified amount for each meeting, but may notexceed the compensation of members of the city fiscal body. Thislimitation does not apply to the officers of the board who performduties outside of the board meetings.
As added by P.L.2-1993, SEC.6.
IC 16-23-1-19
Duties of governing board
Sec. 19. (a) The governing board shall do the following:
(1) Control and manage the city hospital.
(2) Make and establish all necessary or proper bylaws and rulesfor the maintenance and operation of the hospital.
(3) Fix reasonable rates to patients for rooms, care, treatment,and service that are necessary or proper to fulfill the purposesand functions of the hospital.
(b) 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 personnelif the hospital does not conduct any official action (as definedin IC 5-14-1.5-2(d)). (c) 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 (b).
(d) 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,including 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.6. Amended by P.L.91-2002, SEC.16and P.L.100-2002, SEC.18.
IC 16-23-1-19.5
Insurance
Sec. 19.5. The governing board of a hospital organized oroperated under this article may enter into a group purchasingagreement to purchase medical malpractice insurance with thefollowing:
(1) One (1) or more hospitals organized or operated under thisarticle.
(2) One (1) or more hospitals organized or operated underIC 16-22.
As added by P.L.91-2002, SEC.17 and P.L.100-2002, SEC.19.
IC 16-23-1-20
Nonprofit operation; rate reductions
Sec. 20. The board may not operate the hospital for profit, butshall attempt to make the revenues from patients and other incomeequal the expense of operation, maintenance, and equipment ifpracticable. The board may admit and care for the number of patientswho are in need of hospitalization and are unable to pay for thehospitalization in whole or in part as the facilities of the hospital willpermit. The board may reduce the rates to be charged for thesepatients or admit these patients without charge.
As added by P.L.2-1993, SEC.6.
IC 16-23-1-21
Discrimination prohibited
Sec. 21. (a) The hospital may not discriminate among patients dueto the following:
(1) Race, color, or sex.
(2) Occupational, economic, or social status.
(3) Political or religious belief or the lack of political orreligious belief.
(b) The hospital must also be open to all licensed physicians ofthe county and the patients of licensed physicians on equal terms andunder uniform rules.
As added by P.L.2-1993, SEC.6.
IC 16-23-1-22
Equipment and personal property
Sec. 22. The governing board may do the following:
(1) Purchase or lease equipment, appliances, and other personalproperty for the operation and maintenance of the hospital.
(2) Sell or exchange equipment or personal property of thehospital or trade the equipment or personal property for otherequipment or property to be purchased or acquired.
As added by P.L.2-1993, SEC.6.
IC 16-23-1-23
Procurement contracts; trust bids, proposals, and quotations
Sec. 23. (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.6.
IC 16-23-1-24
Loans in anticipation of taxes
Sec. 24. (a) If the city fiscal body authorizes the borrowing byordinance, the board of directors may borrow money by negotiatinga temporary loan in anticipation of taxes already levied and inprocess of collection or distribution in the current year.
(b) The notes, warrants, or other evidences of indebtedness must:
(1) be executed by the city executive and attested by theclerk-treasurer; and
(2) be payable not later than the end of the calendar year inwhich the auditor of the county or the clerk-treasurer of the citywill collect and distribute the taxes in anticipation of which thetemporary loan is made and the money borrowed.
As added by P.L.2-1993, SEC.6.
IC 16-23-1-25
Superintendent; personnel; business manager; pension orretirement plan; powers and duties
Sec. 25. (a) The governing board shall employ an experienced anda qualified person as superintendent of the hospital and other agents,employees, representatives, and servants that the board considersnecessary. The board may fix salaries or compensation upon termsand conditions and with powers and duties the board considersproper. The board may delegate to the secretary or to thesuperintendent any of the board's powers under this section. Theboard, or the superintendent or secretary under authority granted bythe board, may terminate the employment of a person appointedunder this section at any time and with or without notice, except thesuperintendent and business manager. (b) The governing board may also do the following:
(1) Appoint a business manager for the hospital.
(2) Give the manager powers and duties over the administrationof the hospital.
(3) Pay the manager the compensation that the board considersproper.
(c) The governing board may, upon due investigation, authorizeand place into effect a fair and reasonable pension or retirement planfor the hospital personnel with a reputable and an experiencedcompany engaged in that business.
(d) All persons appointed or employed by the board under thissection serve in the appointed or employed capacities, exercise thepowers, and perform the duties that are authorized by the board or bythe secretary of the board under authority granted by the board.However, the right of employment or termination of employment ofthe superintendent or business manager must be exercised by theboard and may not be delegated to the secretary or any other personor officer.
As added by P.L.2-1993, SEC.6.
IC 16-23-1-26
Estimate and budget
Sec. 26. (a) Before August 2 of each year, the governing boardshall do the following:
(1) Analyze, estimate, compute, and consider the following forthe current year and the next year for which the budget is beingprepared:
(A) The income from patients, trust funds, gifts, donations,and all other sources during the current year and receipts thatthe board may reasonably anticipate.
(B) The expenditures already made and that may reasonablybe anticipated for the hospital, including the following:
(i) The price trends in food, supplies, equipment, and otheritems of personal property required in the hospital.
(ii) The present and prospective number of patients usingthe hospital during the period for which the estimates aremade.
(iii) Other facts, conditions, and circumstances that mayprobably affect the income or expenses of the hospitalduring the period.
(2) Determine whether there will be a deficiency in the fundsnecessary to maintain, equip, and operate the hospital in thenext calendar year.
(b) The estimate and budget must be:
(1) in writing;
(2) signed in triplicate by at least a majority of the board; and
(3) certified by the secretary of the board.
(c) Before August 2 of each year, one (1) copy of the estimate andbudget shall be filed in the office of the auditor of the county and one(1) copy shall be filed in the office of the clerk-treasurer of the city.
The third copy must remain on file with the secretary of the board.
As added by P.L.2-1993, SEC.6.
IC 16-23-1-27
Tax levy without anticipated deficiency prohibited
Sec. 27. If the estimate and budget show no anticipated deficiencyfor the next calendar year, the city and the county may not levy anytax on the property of the city or county for the ensuing year.
As added by P.L.2-1993, SEC.6.
IC 16-23-1-28
Anticipated deficiency; tax levy
Sec. 28. (a) If the budget and estimate filed in the auditor's officeof the county in any year shows an anticipated deficiency, theamount of the deficiency shall be set out in the copy of the budgetand estimate filed, and the board shall request that the fiscal body ofthe county appropriate sufficient funds and levy a sufficient tax rateon the taxable property of the county to meet the deficiency. Thecounty auditor shall, upon the basis of the request, compute theamount of money necessary to be appropriated and the amount of taxlevy necessary to be made on the taxable property of the county tomeet the estimated deficiency in the anticipated hospital funds for theensuing calendar year. The auditor shall place the tax levy before thecounty fiscal body at the fiscal body's annual budget meeting inSeptember of the same year the request is filed.
(b) The county fiscal body shall place the amount of theanticipated deficiency in the county budget for the next calendar yearand shall levy a sufficient tax on all taxable property in the county tomeet the anticipated deficiency. However, the tax rate fixed by thecounty fiscal body in any one (1) year may not exceed three andthirty-three hundredths cents ($0.0333) on each one hundred dollars($100) of taxable property in the county. The levy is known as thehospital aid tax.
As added by P.L.2-1993, SEC.6. Amended by P.L.6-1997, SEC.169.
IC 16-23-1-29
Appropriations; special hospital aid tax
Sec. 29. (a) If the county fiscal body is not authorized toappropriate sufficient funds under this chapter to meet an anticipateddeficiency in any one (1) year reported and filed in the offices of thecounty auditor and city clerk-treasurer, the city fiscal body mayappropriate a sufficient amount of funds for the next calendar yearto meet the balance of the anticipated deficiency and levy a specialhospital aid tax on all taxable property in the city for this purpose.
(b) The rate fixed by the city fiscal body for a hospital aid tax inany one (1) year may not exceed two and thirty-three hundredthscents ($0.0233) on each one hundred dollars ($100) of taxableproperty. The tax is in addition to any tax levied by the city for theretirement of bonds or other evidences of indebtedness and paymentof interest charges for the alteration, repair, or improvement of the
hospital, including the construction of additions and extensions to thehospital.
As added by P.L.2-1993, SEC.6. Amended by P.L.6-1997, SEC.170.
IC 16-23-1-30
Emergency appropriations
Sec. 30. The fiscal body of the county and the fiscal body of thecity may make additional appropriations of funds during anycalendar year to meet an emergency for hospital expendituresauthorized under this chapter, payable out of any part of the generalfund of the county or city not otherwise appropriated.
As added by P.L.2-1993, SEC.6.
IC 16-23-1-31
Appropriation approval; review; revision; annual reports
Sec. 31. (a) If the annual budget and appropriations, or anyadditional appropriations or transfers of money, made or proposed bythe board of directors, excluding any cumulative building money:
(1) is not based upon or derived in part from a tax levy onproperty in the county or city; and
(2) involves only the funds of the hospital derived wholly fromother sources than property taxes;
the board only needs to adopt a resolution for the approval of thebudget appropriations, additional appropriations, or transfers and filea true copy of the budget appropriations, additional appropriations,or transfers and the resolution in the offices of the county auditor andcity clerk-treasurer within seven (7) days after board action for theinformation of the public.
(b) If the funds are not derived from taxation, the city fiscal bodymay review, consider, and file objections and take an appeal to thedepartment of local government finance upon the following:
(1) An annual budget and any appropriations in the budget andrequest the reduction or elimination of any item.
(2) Additional appropriations or transfers of funds, or any partof additional appropriations or transfers of funds, within ten(10) days after the certificate has been filed in theclerk-treasurer's office.
The ruling and action of the department of local government financeis final and conclusive.
(c) The annual budget and appropriations may be revised by theboard of directors by increasing or decreasing items in the budgetbased on revenues derived from sources other than property taxesand by transfer from any items of the budget and appropriations toother items of the budget, without giving legal notice or any publichearing. However, a copy of each resolution changing the budget orany appropriations or transfers of funds shall be filed with the cityclerk-treasurer and county auditor within seven (7) days after thepassage of each resolution. The resolution is subject to appeal by thecity fiscal body to the department of local government finance forfinal action in the manner and within the period provided in this
section.
(d) The governing board shall annually file a condensed annualreport of receipts and expenditures of all hospital funds. Expenses orincome items may be summarized in a fair and an accurate mannerfor the information of all taxpayers and citizens. A copy of theannual report covering the preceding calendar year shall be filed inthe city clerk-treasurer's office and in the county auditor's office onor before the first Monday in March. Detailed information on theitems must be available for inspection by the public at the hospitaladministrator's office.
As added by P.L.2-1993, SEC.6. Amended by P.L.90-2002, SEC.398.
IC 16-23-1-32
Hospital aid taxes; collection and deposit
Sec. 32. (a) The county treasurer shall collect all hospital aid taxeslevied by the county fiscal body or city fiscal body as other taxes onproperty are collected, and the county auditor shall pay over theamount to the clerk-treasurer of the city. The amount shall be placedin the hospital fund of the city, subject to the order of the governingboard, and is available for the payment of maintenance, equipment,supplies, and operating expenses of the city hospital and for anyother purpose for which the current budget of the hospital provides.
(b) The clerk-treasurer shall keep the hospital aid money levied bythe county fiscal body or the city fiscal body in separate items on theappropriation records of the city. The amount received from thehospital aid levy of the county shall be considered appropriated forhospital purposes, without further appropriation by the city fiscalbody.
As added by P.L.2-1993, SEC.6.
IC 16-23-1-33
Records, books, papers, and physical property; inspection andexamination
Sec. 33. The business records, books, papers, and physicalproperty of the hospital shall be kept open at all reasonable times tothe inspection and examination of the following:
(1) The state board of accounts.
(2) The city executive, the city fiscal body, and the board ofpublic works and safety of the city.
(3) The county legislative body, the county fiscal body, and thejudge of the circuit court of the county.
(4) Any other authorized local or state officer, board, orcommission.
As added by P.L.2-1993, SEC.6.
IC 16-23-1-34
Gifts, donations, bequests, devises, and property in trust;acceptance and control
Sec. 34. (a) The governing board may accept gifts, donations,bequests, and devises, and property in trust for the use and benefit of
the hospital. The board shall recommend and the city fiscal body, byresolution or ordinance, must approve the terms and acceptance ofany trust. If no trust is involved and there is an unconditional gift ordonation to the hospital or to the city for hospital purposes, the boardmay accept the gift on behalf of the hospital without referring the giftto the city fiscal body.
(b) The governing board shall control all trust funds or propertyand other donations, gifts, bequests, or devises belonging to thehospital or made to the city for hospital purposes. The board shallcarry out terms and conditions of a trust involving acts orproceedings in connection with the hospital.
As added by P.L.2-1993, SEC.6.
IC 16-23-1-35
Facility construction, improvement, and repair by city legislativebodies
Sec. 35. (a) If the city legislative body of a city having a cityhospital determines that the city hospital's buildings and facilities areor will soon become insufficient to serve the needs of the residentsof the city and of the county in which the city is located, the citylegislative body may, by ordinance, do any of the following:
(1) Provide for the construction of any of the following:
(A) Buildings at the same or a different location to replaceor supplement the hospital building.
(B) An extension and addition to any hospital building.
(2) Provide for the alteration, improvement, remodeling, orrepair of any hospital building and grounds.
(3) Provide for the acquisition by condemnation, purchase, ordonation of additional real property.
(b) The city fiscal body may, by ordinance, appropriate or borrowthe necessary money and issue bonds of the city. The city fiscal bodyshall annually levy a sufficient tax on all taxable property in the cityto pay the principal of the bonds that will mature in the ensuingcalendar year and the interest payments due in the ensuing calendaryear on all outstanding bonds of that issue. The appropriations andbonds may include the cost of architects' services and anypreliminary proceedings, legal services, and other incidental expensein connection with the project.
As added by P.L.2-1993, SEC.6.
IC 16-23-1-36
Bonds; terms; security
Sec. 36. (a) The ordinance specified in section 35 of this chaptershall provide for the following:
(1) The issuance, sale, execution date, and principal of eachbond to be issued.
(2) The number of bonds and the aggregate principal of thebond issue.
(3) The payment of interest on the bonds annually orsemiannually. (4) A maturity date that is within twenty-five (25) years fromthe date of execution of the bonds.
(5) Any other terms authorized or required by statute.
(b) The city fiscal body also shall pledge the full faith and creditof the city, with the city's taxable property, to the redemption of thebonds on the respective maturity dates of the bonds and to thepayment of all interest becoming due on the bonds.
As added by P.L.2-1993, SEC.6.
IC 16-23-1-37
Facility construction, improvement, and repair by governing board
Sec. 37. (a) The governing board may design, order, contract for,and execute the following:
(1) The construction of other buildings at the same or adifferent location to replace or supplement a hospital building.
(2) The construction of an adequate and a proper extension andaddition to a hospital building.
(3) The alteration, improvement, repair, and remodeling of ahospital building and grounds.
(4) The acquisition by condemnation, purchase, or donation ofadditional real property.
(5) The purchasing, construction, remodeling, enlargement, oracquisition in any lawful manner of a building for a hospitalpurpose.
(b) The governing board shall perform duties and exercise powersauthorized by ordinances adopted by the fiscal body of the city orcounty for the appropriation of adequate funds or the borrowing ofmoney by issuance and sale of the bonds of the city or county.
(c) Except as provided in IC 36-1-12-1(c) or in this chapter, thegoverning board is governed by all applicable statutes for third classcities in the making of repairs, construction, improvement, extension,or addition of or to the hospital, including the acquisition orcondemnation of real property.
As added by P.L.2-1993, SEC.6.
IC 16-23-1-38
Federal funds and grants; county funds
Sec. 38. The city and the governing board may, by the properofficers, do the following:
(1) Apply for, accept, and receive federal funds or grantsavailable to aid the hospital project.
(2) Agree to and carry out the terms of the grant.
(3) Execute any necessary applications, contracts, and otherinstruments for this purpose.
(4) Accept and receive any funds appropriated and availablefrom the county under this chapter and use the funds for thehospital project.
As added by P.L.2-1993, SEC.6.
IC 16-23-1-39 Emergency hospital construction, improvement, and repair; bonds
Sec. 39. (a) This section applies to the county fiscal body of acounty in which a city hospital is located and maintained.
(b) The county fiscal body may issue and sell bonds andappropriate money, if the fiscal body finds the following:
(1) An emergency exists.
(2) To meet the medical needs of the county residents livinginside and outside the corporate limits of the city it is necessaryto aid in the following:
(A) The construction, improvement, repair, or remodeling ofhospital buildings and grounds.
(B) The construction of an extension or addition to thehospital.
(C) The acquisition of real property for the hospital.
(3) An appropriation of county funds, borrowing of money, andissuance and sale of bonds by the county are in the best interestsof all the citizens of the county.
(c) The county fiscal body may issue and sell bonds andappropriate the proceeds to meet the emergency:
(1) without regard to whether the city in which the hospital islocated has issued and sold bonds for these purposes orcontemplates the issuance and sale of bonds;
(2) as other county bonds are issued and sold under statute; and
(3) subject to approval of the department of local governmentfinance.
(d) The principal derived from the sale of the bonds, upon dueappropriation by the county according to statute, shall be paid to theclerk-treasurer of the city to assist in paying the cost of theimprovement, repair, remodeling, or construction project of thehospital or for the acquisition of real property, withoutreappropriation by the fiscal body of the city.
As added by P.L.2-1993, SEC.6. Amended by P.L.90-2002, SEC.399.
IC 16-23-1-40
Cumulative hospital building fund; tax rate; investment
Sec. 40. (a) The governing board may request a cumulativehospital building fund and a tax rate upon all taxable property in thecounty in which the hospital is located to finance the fund. If aresolution is approved by majority vote of all members at a regularor special board meeting, the resolution shall be certified to thecounty auditor, who shall submit the resolution to the countyexecutive for preliminary approval and recommendation. Upon theapproval of the county executive, the county auditor shall publishnotice of a public hearing before the county council on theestablishment of a cumulative hospital building fund and tax rate ineach year.
(b) The cumulative building tax rate begins in any calendar yearwhen all proceedings to establish the tax rate have been completedbefore August 2 in that year. The rate is levied on each one hundreddollars ($100) of taxable property for that year, payable in the next
year, and continues each year for a term not exceeding twelve (12)years. The resolution of the board must specify the following:
(1) The number of years.
(2) The effective date when the tax levy begins.
(3) The amount of rate on each one hundred dollars ($100) oftaxable property.
(4) Any other pertinent facts considered advisable by the board.
(c) Except as provided in subsections (f) through (h), the rate oneach one hundred dollars ($100) may be reduced but not increasedby the department of local government finance in approving acumulative building tax rate. The rate as finally fixed by thedepartment of local government finance is final. However, the countyfiscal body, by three-fourths (3/4) affirmative vote of the countyfiscal body's members, may reduce the rate in any given year or yearsto meet an emergency existing in the county, but the temporaryreduction affects the rate only in the year when the action is taken.The rate is automatically restored to the rate's original amount ineach succeeding year of the established period except in any otheryear when another emergency reduction is made. The rate is subjectto review each year by the county fiscal body, but the county taxadjustment board and department of local government finance maynot reduce the rate below the original rate established and approvedby vote of the county fiscal body unless the county fiscal bodyreduces the rate.
(d) The county fiscal body, city fiscal body, county tax adjustmentboard, or department of local government finance does not havepower or jurisdiction over the annual budget and appropriations,additional appropriations, or transfer of money unless the actioninvolves the expenditure or raising of money derived from propertytaxes. If the cumulative building fund is the only hospital fund raisedby taxation, section 31 of this chapter controls.
(e) The cumulative building fund raised may be properly andsafely invested or reinvested by the board to produce an income untilthere is an immediate need for the fund's use. The fund and anyincome derived from investment or reinvestment of the fund may beused as follows:
(1) To purchase real property and grounds for hospitalpurposes.
(2) To remodel or make major repairs on any hospital building.
(3) To erect and construct hospital buildings or additions orextensions to the buildings.
(4) For any other major capital improvements, but not forcurrent operating expenses or to meet a deficiency in operatingfunds.
(f) Not later than August 1 of any year, ten (10) or more taxpayersin the county may file with the county auditor of the county in whichthe hospital is located a petition for reduction or rescission of thecumulative building tax rate. The petition must set forth thetaxpayers' objections to the tax rate. The petition shall be certified tothe department of local government finance. (g) Upon receipt of a petition under subsection (f), the departmentof local government finance shall, within a reasonable time, fix adate for a hearing on the petition. The hearing must be held in thecounty in which the hospital is located. Notice of the hearing shall begiven to the county fiscal body and to the first ten (10) taxpayerswhose names appear on the petition. The notice must be in the formof a letter signed by the secretary or any member of the departmentof local government finance, sent by mail with full prepaid postageto the county fiscal body and to the taxpayers at their usual places ofresidence at least five (5) days before the date fixed for the hearing.
(h) After the hearing under subsection (g), the department of localgovernment finance shall approve, disapprove, or modify the requestfor reduction or rescission of the tax rate and shall certify thatdecision to the county auditor of the county in which the hospital islocated.
As added by P.L.2-1993, SEC.6. Amended by P.L.41-1993, SEC.32;P.L.90-2002, SEC.400.
IC 16-23-1-41
Claims against hospitals
Sec. 41. All claims against the hospital for money payable forservices provided, items furnished, or expenses incurred at or for thehospital shall be considered and allowed or disallowed, in whole orin part, as the board of directors considers proper. The allowance ordisallowance shall be certified or attested by the secretary, president,or other member authorized by the board to endorse the action takenon claims. The claims shall then be filed in the clerk-treasurer'soffice of the city. If the claims are covered by proper appropriationsin effect and unexpended and are in due form, or if no appropriationis required by statute and the claims are filed and allowed accordingto statute, the clerk-treasurer shall promptly pay the claims out of thehospital funds of the city to the individual, firm, corporation, or otherlegal entity to whom the claims are due.
As added by P.L.2-1993, SEC.6.
IC 16-23-1-42
Maintenance and operation of properties
Sec. 42. All property constructed, purchased, improved, repaired,remodeled, or acquired by the city or by the board of directors andused for hospital purposes shall be maintained and operated as andfor a city hospital under the control of the board of directors, withequal representation on the board to the residents of the city and tothe citizens of the county residing outside the city and with equalrights, facilities, service, and treatment available to citizens of thecounty residing inside and outside the corporate limits of the city.
As added by P.L.2-1993, SEC.6.
IC 16-23-1-43
City classification changes; effect
Sec. 43. If a city to which this chapter applies becomes a city of
a different class, the hospital may continue to be maintained,operated, improved, remodeled, and enlarged, and real propertyacquired, as provided in this chapter as if the classification had notchanged.
As added by P.L.2-1993, SEC.6.
IC 16-23-1-44
Joint hospital operation
Sec. 44. A city hospital operating under this chapter may operatejointly with a county hospital in the same county created underIC 16-22-13. Joint operation may include joint employment of anadministrator and other personnel, joint policies, joint purchases,joint services, and other programs to reduce the costs of health care.The board of directors of the city hospital may contract with thehospital board of the county hospital to provide for the manner ofallocation of revenues and expenditures and the administration of thehospitals. Records must reflect the separate ownership, financialobligations, and existence of the city hospital and the countyhospital.
As added by P.L.2-1993, SEC.6.
IC 16-23-1-45
Governing board; rights and powers; sale and lease of realproperty
Sec. 45. (a) The governing board has the same rights and powersas the hospital board of a county hospital under IC 16-22-2, exceptwhen those rights and powers are in conflict with the rights andpowers granted to a city hospital under this chapter. However, a cityhospital and the hospital's board of directors do not have authority toact inconsistently with the nature of the city hospital as a body of citygovernment.
(b) The governing board may sell or lease real property to othersby taking the same steps and procedures that the city served by thecity hospital is required to take to sell or lease real property, exceptto the extent that this subsection conflicts with another statuteauthorizing the sale or lease of real property.
As added by P.L.2-1993, SEC.6.
IC 16-23-1-46
Sale of real property; trust bids; lease of real and personalproperty; loans
Sec. 46. (a) This section applies to the sale of real property by thegoverning board.
(b) If real property is sold by acceptance of bids, a bid submittedfor the property by a trust (as defined in IC 30-4-1-1(a)) mustidentify the following:
(1) Each beneficiary of the trust.
(2) Each settlor empowered to revoke or modify the trust.
(c) The governing board may lease from others real or personalproperty, with or without an option to purchase, on terms and
conditions and for times the board of directors considers reasonable.
(d) The governing board may borrow money and may secure theloan by a pledge of amounts from the cumulative building fund orother security. The loan may be made for a term of up to twenty (20)years.
As added by P.L.2-1993, SEC.6.
IC 16-23-1-47
Board of directors; authority and powers; direct financial subsidies
Sec. 47. (a) The board of directors has the authority and powersgranted to boards of nonprofit corporations under IC 23-17, includingthe powers to do the following:
(1) Enter shared service agreements and other cooperativeventures.
(2) Join or sponsor memberships in organizations andassociations that benefit the hospital.
(3) Incorporate other corporations.
(4) Allow members of the board or officers or administrators ofthe hospital to serve as directors of the following:
(A) Organizations or associations that benefit the hospital.
(B) Partnerships, limited liability companies, or othercorporations.
(C) Shared service agreements and other cooperativeventures.
(5) Offer to the general public, directly or indirectly, productsand services of any entity created under this subsection.
(6) Sue and be sued in the board's own name.
(7) Enter into contracts.
(8) Perform all other duties and exercise all other powersprescribed by law.
(b) The existence of authority or power under subsection (a) shallbe determined in favor of the hospital if generally authorized orexisting under IC 23-17. A resolution of the board of directors ispresumptive evidence of a power.
(c) If a county or city fiscal body provides a direct financialsubsidy to a hospital from a tax levy at the time a hospital exercisesthe hospital's powers under subsection (a), the hospital may notprovide the funds from a tax levy to an entity created undersubsection (a) for more than three (3) years. After three (3) years, allmoney, with interest, must be repaid in not more than ten (10) years.
As added by P.L.2-1993, SEC.6. Amended by P.L.8-1993, SEC.251.