14-687.   Governing body vested with control of hospitals; management bygoverning body or trustees; pension and deferred compensation plans foremployees; contracts insuring employees and dependents; expenditures forrecruitment or retention of professional staff; lease or rental of hospital.Upon the establishment and building of a hospital by such cities, thegoverning bodies thereof are hereby vested with the authority to manage andcontrol such hospital or such governing body may appoint three trusteesfrom the citizens of such city with reference to their fitness for suchoffice, who shall constitute a board of trustees forthe hospital. The trustees shall within 10 daysafter their appointment organize a board of hospital trustees by the electionof one of their number as chairman, one as secretary and one as treasurer. Theboard of hospital trustees is authorized to establish andfund pension and deferred compensation plans for hospital employees and toprocure contracts insuring hospital employees, their dependents, or any classor classes thereof, under a policy or policies of life, disability income,health, accident, accidental death and dismemberment and hospital,surgical and medical expense insurance. The employee's contribution, if any, tothe plan and to the premium for such insurance may be deducted by the employerfrom the employee's salary when authorized in writing by the respectiveemployee. The board of hospital trustees may also expend suchfunds as deemed necessary in recruitment or retention of professional staffincluding, butnot limited to, the purchase of professional liability insurance for suchstaff. The trustees shall receive no compensation for theirservices and shall serve at the pleasure of the governing body of such city.

      The governing body of the city shall have the power byresolution to rent, lease or let the hospital to any person,persons, corporation or society upon such terms and conditions as the governingbody of the city may deem to the best interest of thecity. Upon the expiration of the lease, the governingbody of the city at the time of the expiration of such lease shallhave the power to make and execute a new lease to any person, persons,corporation or society upon such terms and conditions as the governing body maydeem to the best interest of the city.

      History:   L. 1947, ch. 162, § 3; L. 1971, ch. 49, §6; L. 1972, ch. 44, § 6;L. 1991, ch. 66, § 6; July 1.