MUNICIPAL HEALTH FACILITIES CORPORATIONS ACT (EXCERPT) Act 230 of 1987
331.1306 Board of trustees and subsidiary board; reorganization agreements; transfer of ownership or operation; establishing terms of reorganization; acceptance of notes, bonds, or obligations; discrimination prohibited; approval of transfer; transfer not to impair corporate obligation, bond, note, or contract.
Sec. 306.
(1) Subject to applicable licensing and other regulatory requirements, and subject to any approvals required under subsections (5) and (6), each board of trustees and subsidiary board may enter into and carry out agreements for the reorganization and the transfer of ownership or operation of some or all of its health care facilities and related assets or health services to a nonprofit health care organization or to a public authority on behalf of a nonprofit health care organization by sale, installment sales agreement, land contract, lease, lease with an option to purchase, sublease, contract, option, or by any other means.
(2) In establishing the terms of a reorganization pursuant to this section, the board of trustees or subsidiary board may take into account, in addition to the monetary consideration for the transfer, if any, 1 or more of the following:
(a) The ability and willingness of the nonprofit health care organization to continue to provide health services to residents of the local governmental unit.
(b) The assumption by the nonprofit health care organization of liabilities, obligations, and risks associated with ownership or operation of the health care facilities and health services transferred, including those associated with outstanding bonds, notes and obligations, pension, retirement, and other benefits for employees and employees and conditions attached to public or private grants.
(c) The willingness and ability of the nonprofit health care organization to provide services to those unable to pay fully for their care.
(d) The elimination of or reduction in support required for the health care facilities or health services from tax revenues or other public sources.
(e) The ability and willingness of the nonprofit health care corporation to expand or improve the health care facilities or the health services being transferred.
(f) Such other factors bearing on the health and welfare of the residents of the local governmental unit as the board of trustees or subsidiary board considers appropriate.
(3) A board of trustees or subsidiary board may accept secured or unsecured notes, bonds, or obligations given by or on behalf of a nonprofit health care organization or such other forms of payment as it considers appropriate in full or partial satisfaction of any monetary consideration provided under an agreement for reorganization pursuant to this section.
(4) Any board of trustees or subsidiary board transferring health care facilities pursuant to this section shall require, for a term of not less than 30 years, that use of the health care facilities transferred shall be open to all regardless of race, religion, color, national origin, sex, age, disability, marital status, sexual preference, or source of payment, and that the nonprofit health care organization acquiring such health care facilities shall provide an equal opportunity for employment, without discrimination as to race, religion, color, national origin, sex, age, disability, marital status, or sexual preference.
(5) Any transfer made by a subsidiary board in reliance upon this section shall be made only with the prior approval of the board of trustees of its parent corporation.
(6) Any transfer by a corporation or a subsidiary corporation in reliance upon this section shall be made only with the prior approval of the county board of commissioners, city council, or village council, if either of the following applies:
(a) The health care facilities or health services to be transferred provided more than 10% of the gross revenues of the corporation or subsidiary corporation making the transfer, determined in accordance with generally accepted accounting principles, in either of the 2 full fiscal years of the corporation or subsidiary corporation completed immediately preceding the date of the transfer.
(b) A majority of the governing body of the nonprofit health care organization acquiring the health care facilities or health services is composed of persons who are also serving as trustees of the corporation or the subsidiary corporation making the transfer.
(7) Notwithstanding any other provision of this section, no transfer shall be made in such a way as to impair the obligation of the corporation or the subsidiary corporation with respect to any outstanding corporation obligation, bond, note, or contract.
MUNICIPAL HEALTH FACILITIES CORPORATIONS ACT (EXCERPT) Act 230 of 1987
331.1306 Board of trustees and subsidiary board; reorganization agreements; transfer of ownership or operation; establishing terms of reorganization; acceptance of notes, bonds, or obligations; discrimination prohibited; approval of transfer; transfer not to impair corporate obligation, bond, note, or contract.
Sec. 306.
(1) Subject to applicable licensing and other regulatory requirements, and subject to any approvals required under subsections (5) and (6), each board of trustees and subsidiary board may enter into and carry out agreements for the reorganization and the transfer of ownership or operation of some or all of its health care facilities and related assets or health services to a nonprofit health care organization or to a public authority on behalf of a nonprofit health care organization by sale, installment sales agreement, land contract, lease, lease with an option to purchase, sublease, contract, option, or by any other means.
(2) In establishing the terms of a reorganization pursuant to this section, the board of trustees or subsidiary board may take into account, in addition to the monetary consideration for the transfer, if any, 1 or more of the following:
(a) The ability and willingness of the nonprofit health care organization to continue to provide health services to residents of the local governmental unit.
(b) The assumption by the nonprofit health care organization of liabilities, obligations, and risks associated with ownership or operation of the health care facilities and health services transferred, including those associated with outstanding bonds, notes and obligations, pension, retirement, and other benefits for employees and employees and conditions attached to public or private grants.
(c) The willingness and ability of the nonprofit health care organization to provide services to those unable to pay fully for their care.
(d) The elimination of or reduction in support required for the health care facilities or health services from tax revenues or other public sources.
(e) The ability and willingness of the nonprofit health care corporation to expand or improve the health care facilities or the health services being transferred.
(f) Such other factors bearing on the health and welfare of the residents of the local governmental unit as the board of trustees or subsidiary board considers appropriate.
(3) A board of trustees or subsidiary board may accept secured or unsecured notes, bonds, or obligations given by or on behalf of a nonprofit health care organization or such other forms of payment as it considers appropriate in full or partial satisfaction of any monetary consideration provided under an agreement for reorganization pursuant to this section.
(4) Any board of trustees or subsidiary board transferring health care facilities pursuant to this section shall require, for a term of not less than 30 years, that use of the health care facilities transferred shall be open to all regardless of race, religion, color, national origin, sex, age, disability, marital status, sexual preference, or source of payment, and that the nonprofit health care organization acquiring such health care facilities shall provide an equal opportunity for employment, without discrimination as to race, religion, color, national origin, sex, age, disability, marital status, or sexual preference.
(5) Any transfer made by a subsidiary board in reliance upon this section shall be made only with the prior approval of the board of trustees of its parent corporation.
(6) Any transfer by a corporation or a subsidiary corporation in reliance upon this section shall be made only with the prior approval of the county board of commissioners, city council, or village council, if either of the following applies:
(a) The health care facilities or health services to be transferred provided more than 10% of the gross revenues of the corporation or subsidiary corporation making the transfer, determined in accordance with generally accepted accounting principles, in either of the 2 full fiscal years of the corporation or subsidiary corporation completed immediately preceding the date of the transfer.
(b) A majority of the governing body of the nonprofit health care organization acquiring the health care facilities or health services is composed of persons who are also serving as trustees of the corporation or the subsidiary corporation making the transfer.
(7) Notwithstanding any other provision of this section, no transfer shall be made in such a way as to impair the obligation of the corporation or the subsidiary corporation with respect to any outstanding corporation obligation, bond, note, or contract.
MUNICIPAL HEALTH FACILITIES CORPORATIONS ACT (EXCERPT) Act 230 of 1987
331.1306 Board of trustees and subsidiary board; reorganization agreements; transfer of ownership or operation; establishing terms of reorganization; acceptance of notes, bonds, or obligations; discrimination prohibited; approval of transfer; transfer not to impair corporate obligation, bond, note, or contract.
Sec. 306.
(1) Subject to applicable licensing and other regulatory requirements, and subject to any approvals required under subsections (5) and (6), each board of trustees and subsidiary board may enter into and carry out agreements for the reorganization and the transfer of ownership or operation of some or all of its health care facilities and related assets or health services to a nonprofit health care organization or to a public authority on behalf of a nonprofit health care organization by sale, installment sales agreement, land contract, lease, lease with an option to purchase, sublease, contract, option, or by any other means.
(2) In establishing the terms of a reorganization pursuant to this section, the board of trustees or subsidiary board may take into account, in addition to the monetary consideration for the transfer, if any, 1 or more of the following:
(a) The ability and willingness of the nonprofit health care organization to continue to provide health services to residents of the local governmental unit.
(b) The assumption by the nonprofit health care organization of liabilities, obligations, and risks associated with ownership or operation of the health care facilities and health services transferred, including those associated with outstanding bonds, notes and obligations, pension, retirement, and other benefits for employees and employees and conditions attached to public or private grants.
(c) The willingness and ability of the nonprofit health care organization to provide services to those unable to pay fully for their care.
(d) The elimination of or reduction in support required for the health care facilities or health services from tax revenues or other public sources.
(e) The ability and willingness of the nonprofit health care corporation to expand or improve the health care facilities or the health services being transferred.
(f) Such other factors bearing on the health and welfare of the residents of the local governmental unit as the board of trustees or subsidiary board considers appropriate.
(3) A board of trustees or subsidiary board may accept secured or unsecured notes, bonds, or obligations given by or on behalf of a nonprofit health care organization or such other forms of payment as it considers appropriate in full or partial satisfaction of any monetary consideration provided under an agreement for reorganization pursuant to this section.
(4) Any board of trustees or subsidiary board transferring health care facilities pursuant to this section shall require, for a term of not less than 30 years, that use of the health care facilities transferred shall be open to all regardless of race, religion, color, national origin, sex, age, disability, marital status, sexual preference, or source of payment, and that the nonprofit health care organization acquiring such health care facilities shall provide an equal opportunity for employment, without discrimination as to race, religion, color, national origin, sex, age, disability, marital status, or sexual preference.
(5) Any transfer made by a subsidiary board in reliance upon this section shall be made only with the prior approval of the board of trustees of its parent corporation.
(6) Any transfer by a corporation or a subsidiary corporation in reliance upon this section shall be made only with the prior approval of the county board of commissioners, city council, or village council, if either of the following applies:
(a) The health care facilities or health services to be transferred provided more than 10% of the gross revenues of the corporation or subsidiary corporation making the transfer, determined in accordance with generally accepted accounting principles, in either of the 2 full fiscal years of the corporation or subsidiary corporation completed immediately preceding the date of the transfer.
(b) A majority of the governing body of the nonprofit health care organization acquiring the health care facilities or health services is composed of persons who are also serving as trustees of the corporation or the subsidiary corporation making the transfer.
(7) Notwithstanding any other provision of this section, no transfer shall be made in such a way as to impair the obligation of the corporation or the subsidiary corporation with respect to any outstanding corporation obligation, bond, note, or contract.
