IC 16-23-5
    Chapter 5. Aid to Nonprofit and Benevolent Hospitals

IC 16-23-5-1
Application of chapter
    Sec. 1. This chapter applies to a nonprofit hospital corporationthat meets the following conditions:
        (1) Is established in or within one (1) mile of a city.
        (2) Is located within a county without a city or other publichospital.
        (3) Has insufficient revenues derived from the care of personsable to pay for services and from all other sources to supportand maintain the hospital and enable the hospital to supply thedemand for hospital care and nursing in the city andcommunity.
As added by P.L.2-1993, SEC.6.

IC 16-23-5-2
Governing board; members
    Sec. 2. A nonprofit hospital corporation described in section 1 ofthis chapter must have articles of incorporation, a constitution, orbylaws that provide that:
        (1) the corporation's incorporators are the corporation's firstboard of trustees and the board:
            (A) is the corporation's sole governing board; and
            (B) elects the board's successors at stated periods fromreputable citizens of the city and vicinity, who:
                (i) may include one (1) licensed physician; and
                (ii) must be persons interested in the benevolent work ofthe hospital, chosen without reference to political orsectarian influence, and who receive no compensation fortheir services; or
        (2) the corporation's general corporate powers will be exercisedby a governing board, whose members:
            (A) may include one (1) licensed physician;
            (B) must be residents of the city in which the hospital islocated; and
            (C) must be elected by a board of electors consisting ofrepresentatives from each organized church, religiousassociation, fraternal, charitable, military, patriotic, civicorganization, and labor union in the city.
As added by P.L.2-1993, SEC.6.

IC 16-23-5-3
Conflicts of interest
    Sec. 3. An individual is not prohibited from serving as a memberof 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, the

member 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.
As added by P.L.2-1993, SEC.6.

IC 16-23-5-4
Governing board vacancies; candidates
    Sec. 4. 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 governing board members.
As added by P.L.2-1993, SEC.6.

IC 16-23-5-5
Governing board vacancies; appointments
    Sec. 5. (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 section4 of this chapter.
As added by P.L.2-1993, SEC.6.

IC 16-23-5-6
Hospital support and maintenance
    Sec. 6. A city may provide for the support and maintenance of ahospital subject to this chapter as follows:
        (1) Appropriate money to the hospital.
        (2) Levy and collect a special tax not exceeding two andthirty-three hundredths cents ($0.0233) on each one hundreddollars ($100) valuation of the taxable property of the city.
        (3) Give other aid and support to the hospital that the citycouncil considers proper.
As added by P.L.2-1993, SEC.6. Amended by P.L.6-1997, SEC.173.
IC 16-23-5-7
Contracts with townships
    Sec. 7. The trustees of the townships of the county, with theconsent of the township boards, may contract with the managers ofthe hospital for the nursing and care of the poor of the townshipswho are sick, injured, or disabled, upon terms that the townshipofficers determine to be just and proper.
As added by P.L.2-1993, SEC.6.