CHAPTER 2. COUNTY HOSPITAL GOVERNING BOARDS
IC 16-22-2
Chapter 2. County Hospital Governing Boards
IC 16-22-2-1
Establishment
Sec. 1. (a) A county executive may establish a hospital in the
following manner:
(1) The county executive shall promptly determine the
following:
(A) The buildings and the estimated cost of the buildings
needed to serve the needs of the county.
(B) The method of financing the hospital buildings.
(C) The estimated amount of money to be raised by the sale
of general obligation bonds of the county or revenue bonds
of an authority.
(2) The county executive shall enter an order establishing the
hospital.
(b) The appointment of the members of the board and the
acquisition and financing of hospital buildings shall be done under
this article.
As added by P.L.2-1993, SEC.5.
IC 16-22-2-2
Board; qualifications; appointments; terms; vacancies
Sec. 2. (a) Except as otherwise provided in this article or in
IC 16-12.1 (before its repeal on July 1, 1993), each hospital
established under this article or IC 16-12.1 (before its repeal on July
1, 1993) must have a board of four (4) members, appointed by the
county executive. All four (4) members must be residents of the
county in which the hospital is located and one (1) member may be
a licensed physician who is a member of the medical staff of the
hospital. When appointing a physician member, the county executive
shall consider the recommendation of the medical staff of the
hospital.
(b) The initial appointments made under this section are as
follows:
(1) One (1) member holds office for one (1) year.
(2) One (1) member holds office for two (2) years.
(3) One (1) member holds office for three (3) years.
(4) One (1) member holds office for four (4) years.
(c) After the initial appointments, board members shall be
appointed to serve terms of four (4) years.
(d) Except as provided in section 11 of this chapter, a vacancy on
the board shall be filled by the county executive, and the appointee
shall be appointed to complete the unexpired term of the member
whose office has been vacated.
As added by P.L.2-1993, SEC.5. Amended by P.L.91-2002, SEC.1
and P.L.100-2002, SEC.1.
IC 16-22-2-3
Governing board; qualifications; appointments; terms
Sec. 3. (a) This section applies to hospitals operated under
IC 16-12-1 (before its repeal on July 1, 1993).
(b) The management of a hospital shall be under the control of a
governing board consisting of eleven (11) members. Three (3) of the
members of the governing board must be the members of the county
executive.
(c) If the hospital is acquired or equipped without the aid of a
hospital association:
(1) three (3) members of the governing board shall be appointed
by the county executive; and
(2) five (5) members of the governing board, one (1) of whom
may be a licensed physician, shall be appointed by the county
fiscal body.
(d) If the hospital is acquired or equipped with the aid of a
hospital association:
(1) four (4) members of the governing board, one (1) of whom
may be a licensed physician, shall be appointed by the hospital
association;
(2) two (2) members of the governing board shall be appointed
by the county executive; and
(3) two (2) members of the governing board shall be appointed
by the county fiscal body.
(e) The term of an appointed member of the governing board is
two (2) years, except a person appointed by the county executive
under subsection (c)(1) or (d)(2) serves a one (1) year term.
Thereafter, the persons appointed by the county executive to succeed
initial persons serve two (2) year terms.
As added by P.L.2-1993, SEC.5.
IC 16-22-2-3.1
Governing board; members; terms
Sec. 3.1. (a) This section applies to a hospital operated under
IC 16-12-4-2 (before its repeal on July 1, 1993) that is located in a
county having a population of more than forty-one thousand (41,000)
but less than forty-three thousand (43,000).
(b) The management of a hospital is under the control of a
governing board. The governing board consists of nine (9) members
appointed by the county executive as follows:
(1) Three (3) members must be members of the county
executive.
(2) Six (6) members must be residents of the county. One (1)
member may be a licensed physician.
(c) The term of each member of the governing board is three (3)
years.
(d) If a vacancy occurs due to the expiration of an appointed
member's term and the county executive does not fill the vacancy
within sixty (60) days from the date of expiration, the member whose
term has expired is automatically reappointed for another term.
As added by P.L.56-1995, SEC.2. Amended by P.L.91-2002, SEC.2
and P.L.100-2002, SEC.2.
IC 16-22-2-4
Governing board in certain counties; members; terms
Sec. 4. (a) This section applies to the governing boards of county
hospitals in a county having a population of more than thirty-nine
thousand (39,000) but less than thirty-nine thousand six hundred
(39,600).
(b) The governing board of a county hospital consists of seven (7)
members, as follows:
(1) Three (3) members must be the members of the county
executive.
(2) Four (4) members, one (1) of whom may be a licensed
physician, shall be appointed by the judge of the circuit court of
the county.
(c) The term of office for members of the governing board, other
than the members of the county executive, is two (2) years.
As added by P.L.2-1993, SEC.5. Amended by P.L.170-2002,
SEC.103.
IC 16-22-2-5
Governing board; members; terms
Sec. 5. (a) This section applies to county hospitals in counties
having a population of more than eighteen thousand (18,000) but less
than eighteen thousand three hundred (18,300).
(b) The hospital and the affairs and business of the hospital shall
be under the management and control of a governing board
consisting of seven (7) members as follows:
(1) Three (3) members must be the members of the county
executive.
(2) Two (2) members shall be appointed by the county fiscal
body, one (1) of whom may be a licensed physician.
(3) Two (2) members shall be appointed by the county
executive.
(c) One (1) of the members initially appointed by the county fiscal
body serves for one (1) year and one (1) of the members initially
appointed serves for two (2) years. After the initial appointment, the
members serve for two (2) years.
(d) One (1) of the members initially appointed by the county
executive serves for one (1) year and one (1) of the members initially
appointed serves for two (2) years. After the initial appointment, the
members serve for two (2) years.
As added by P.L.2-1993, SEC.5. Amended by P.L.35-1997, SEC.2;
P.L.91-2002, SEC.3 and P.L.100-2002, SEC.3.
IC 16-22-2-5.5
Repealed
(Repealed by P.L.64-1998, SEC.8.)
IC 16-22-2-6
County hospital governing board; membership; terms of office
Sec. 6. (a) This section applies to hospitals established under Acts
1917, c.144, s.1.
(b) Except as provided in section 7 of this chapter, the
management of the hospital shall be under the control of a governing
board consisting of four (4) members appointed by the county
executive. One (1) of the members may be a licensed physician. The
members shall be chosen from the residents of the county.
(c) The initial terms of the members are as follows:
(1) One (1) member has a term of one (1) year.
(2) One (1) member has a term of two (2) years.
(3) One (1) member has a term of three (3) years.
(4) One (1) member has a term of four (4) years.
After the initial appointments, the members serve for four (4) years.
As added by P.L.2-1993, SEC.5. Amended by P.L.35-1997, SEC.3;
P.L.91-2002, SEC.4 and P.L.100-2002, SEC.4.
IC 16-22-2-7
Governing board; membership; increase or decrease in number;
qualifications; terms
Sec. 7. (a) Except as provided in subsection (d), a governing board
of four (4) members in existence on September 2, 1971, may petition
the county executive to increase the size of the board to five (5), six
(6), seven (7), eight (8), or nine (9) members. If the county executive
approves the petition, the county executive shall appoint new
members to increase the number of board members to the chosen size
in the following manner:
(1) All members must be residents of the county in which the
hospital is located.
(2) If a board size of five (5) members is chosen, a new member
shall be appointed for an initial term of one (1) year.
(3) If a board size of six (6) members is chosen, the new
members shall be appointed in the following order as necessary:
(A) One (1) new member for an initial term of one (1) year.
(B) One (1) new member for an initial term of two (2) years.
(4) If a board size of seven (7) members is chosen, the new
members shall be appointed in the following order as necessary:
(A) One (1) new member for an initial term of one (1) year.
(B) One (1) new member for an initial term of two (2) years.
(C) One (1) new member for an initial term of three (3)
years.
(5) If a board size of eight (8) members is chosen, the new
members shall be appointed in the following order as necessary:
(A) One (1) new member for an initial term of one (1) year.
(B) One (1) new member for an initial term of two (2) years.
(C) One (1) new member for an initial term of three (3)
years.
(D) One (1) new member for an initial term of four (4) years.
(6) If a board size of nine (9) members is chosen, the new
members shall be appointed in the following order as necessary:
(A) Two (2) new members for an initial term of one (1) year.
(B) One (1) new member for an initial term of two (2) years.
(C) One (1) new member for an initial term of three (3)
years.
(D) One (1) new member for an initial term of four (4) years.
(7) If a board size of seven (7), eight (8), or nine (9) members
is chosen, two (2) members may be licensed physicians.
(b) A governing board that has increased its size may petition the
county executive to decrease the size of the board. However, a
decrease under this subsection may only be accomplished through:
(1) the vacancy of a member's position, either through
expiration of the member's term or any other cause; or
(2) removal of a member as provided under applicable law.
(c) There is no limit to the number of times a governing board
may seek to increase or decrease its size under this section.
(d) For a governing board of four (4) members located in a county
having a population of:
(1) more than fourteen thousand five hundred (14,500) but less
than fourteen thousand nine hundred (14,900);
(2) more than twenty-five thousand (25,000) but less than
twenty-five thousand five hundred (25,500); or
(3) more than thirty-three thousand eight hundred (33,800) but
less than thirty-four thousand three hundred (34,300);
the county executive may increase the number of board members to
five (5), six (6), or seven (7), subject to the limitations of this section.
After the initial appointments, each board member shall be appointed
to serve for a term of four (4) years.
As added by P.L.2-1993, SEC.5. Amended by P.L.35-1997, SEC.4;
P.L.91-2002, SEC.5 and P.L.100-2002, SEC.5.
IC 16-22-2-8
County hospitals in counties with existing city hospital operating
under IC 16-23-1; creation; board and association; membership;
appointment; joint operation
Sec. 8. (a) This section applies to a county where a city hospital
is operated under IC 16-23-1.
(b) A county hospital may be created by an order of the county
executive without filing a petition or holding an election.
(c) The county executive may create a hospital association under
IC 16-22-6.
(d) An appointing board shall be formed to appoint the members
of the governing board of the county hospital. The appointing board
shall consist of three (3) members, as follows:
(1) The executive of the city where the city hospital is located.
(2) The judge of the circuit court of the county.
(3) A member of the county executive chosen by the county
executive of the county.
(e) Each member must take and subscribe an oath for the honest
and faithful performance of the member's duties, which shall be filed
in the auditor's office of the county.
(f) The governing board consists of seven (7) members with the
following qualifications:
(1) Each member must be a qualified voter in the county.
(2) Not more than two (2) members may be licensed physicians.
(3) One (1) member may be a registered nurse licensed to
practice in Indiana.
(g) Initial and subsequent appointments to the hospital board shall
be made for staggered terms ending on February 1 to coincide with
the terms of members of the city hospital board of directors created
by IC 16-23-1.
(h) The appointing board members may serve without bond. The
regular meeting of the appointing board for the appointment of
members to the hospital board shall be on the third Monday in
January of each year following the year of the initial appointments.
The meeting may adjourn periodically until the appointments for all
expired or vacant memberships are made. Vacancies occurring on the
hospital board may be filled at a special meeting of the appointing
board called by the county auditor or by two (2) members of the
appointing board on five (5) days notice to all appointing board
members, or without notice if all of the appointing board members
are present at the meeting. Each meeting of the appointing board
shall be held at the county executive's room of the county, unless by
unanimous consent the board determines to hold the meeting at
another location.
(i) The county executive shall choose the board's member of the
appointing board each year following the year of initial appointments
at the board's regular January meeting.
(j) The governing board may operate the county hospital jointly
with the city hospital operated in the same county under IC 16-23-1.
The joint operation may include joint employment of an
administrator and other personnel, joint policies, joint purchases,
joint services, and other programs to deliver health care at a reduced
cost. The governing board of the county hospital may contract with
the governing board of the city hospital to allocate revenues and
expenditures and for the administration of the hospitals, but records
must be kept that reflect the separate ownership, financial
obligations, and existence of the county hospital and the city
hospital.
As added by P.L.2-1993, SEC.5. Amended by P.L.91-2002, SEC.6
and P.L.100-2002, SEC.6.
IC 16-22-2-9
Board organization; bond; meetings; quorum; compensation and
reimbursements
Sec. 9. (a) Each governing board member shall not more than ten
(10) days after appointment and before entering on official duties
take an oath to support the Constitution of the United States and the
Constitution of the State of Indiana and to faithfully discharge the
duties of office. The board shall adopt bylaws that provide for the
election of one (1) member as chairman, one (1) member as
secretary, and other officers the board considers necessary or
advisable.
(b) The county treasurer of the county in which the hospital is
located shall be the treasurer of the governing board. Money in the
hospital fund shall be disbursed only on warrants issued by the
county auditor and countersigned by the county treasurer. However,
the board, with the approval of the county executive, may elect a
treasurer who shall also serve as the disbursing officer of the
hospital. Checks drawn by the treasurer must be countersigned by a
person selected by the board. Approval by the county executive for
the board to elect a treasurer is permanent and the treasurer may not
be a member of the board.
(c) The executive director and all persons whose duty it is to
handle funds of the hospital must execute a corporate surety bond in
an amount and with conditions required by the board. If a treasurer
is elected by the board, the treasurer shall be separately bonded in an
amount fixed by the board but not less than twenty-five thousand
dollars ($25,000). The board may elect an assistant treasurer who
may not be a member of the board and who must be separately
bonded in an amount fixed by the board greater than twenty-five
thousand dollars ($25,000). The bond on all persons except the
treasurer and assistant treasurer may be a blanket corporate surety
bond conditioned for the faithful performance of duties. All bonds
required by this subsection must be approved by the board and filed
with the county recorder. The premiums shall be paid out of hospital
funds.
(d) A majority of the members of the governing board constitutes
a quorum and board action requires the affirmative vote of a majority
of those members present at a regular or special meeting of the board
at which a quorum is present. If a board member is absent from three
(3) consecutive regular board meetings or is absent from four (4)
regular board meetings during a year, upon recommendation by the
board, the member may be removed from office by the county
executive and, except as provided in section 7(b) of this chapter, the
vacancy created shall be filled as provided in section 11 of this
chapter.
(e) Each board member shall be reimbursed for expenditures made
by the member in performing the duties of office and an itemized
statement of expenses must be filed with the secretary and allowed
by the board. Each governing board member may receive annual
compensation not to exceed three thousand six hundred dollars
($3,600) with compensation to be fixed by the board.
(f) The governing board shall hold at least ten (10) regular
meetings each year and special meetings of the board may be called
at any time by the chairman or two (2) members of the board. The
secretary of the board shall keep a complete record of all
proceedings.
(g) A board member may receive group health and life insurance
benefits paid by the hospital. Health and life insurance benefits are
not considered compensation under subsection (e).
(h) A board member may attend meetings and seminars for the
benefit of the hospital with the cost of the meetings and seminars
paid by the hospital. A payment made by the hospital under this
subsection to a board member is not considered compensation under
subsection (e).
As added by P.L.2-1993, SEC.5. Amended by P.L.35-1997, SEC.5.
IC 16-22-2-10
Conflicts of interest; disclosure; abstention; removal
Sec. 10. (a) An individual is not prohibited from serving as a
member of 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 board
and provide a copy to the state board of accounts. The member shall
abstain from voting on any matter that affects the interest or profit.
(b) The governing board shall adopt a written conflict of interest
policy that meets the requirements of subsection (a). The written
conflict of interest policy may contain other requirements as
determined by the board.
(c) A member of a governing board who violates this section or
the written conflict of interest policy described in subsection (b) may
be removed from the governing board by action of the board.
(d) The county executive may not:
(1) reappoint to a governing board; or
(2) appoint to a governing board;
an individual who violates this section or the written conflict of
interest policy described in subsection (b) while serving or after
serving as a member of a governing board.
As added by P.L.2-1993, SEC.5. Amended by P.L.125-2006, SEC.3.
IC 16-22-2-11
Vacancies on governing board
Sec. 11. (a) Except as provided in section 12 of this chapter,
whenever a vacancy occurs on the governing board, the existing
governing board shall submit a list of three (3) candidates for each
vacancy to be filled to the appointing authority.
(b) For each vacancy, the appointing authority may do one (1) of
the following:
(1) Appoint one (1) of the three (3) candidates submitted by the
governing board.
(2) Request and receive from the governing board a second list
of three (3) candidates.
(3) Appoint an individual who meets the requirements
concerning board members and who was not named in the
initial list submitted by the governing board.
(c) If the appointing authority requests and receives a second list
of three (3) candidates under subsection (b)(2), the appointing
authority may do one (1) of the following:
(1) Appoint one (1) of the three (3) candidates named in the
second list.
(2) Appoint an individual who meets the requirements
concerning board members and who was not named in the
second list of three (3) candidates submitted by the governing
board.
(d) The appointment for a vacancy shall be made not more than
sixty (60) days after submission of the initial list of candidates under
subsection (a).
(e) If the vacancy occurred due to the expiration of a member's
term and the vacancy is not filled within sixty (60) days of the
expiration date, the member whose term expired is automatically
reappointed for another term.
(f) Each candidate submitted by the governing board must meet
the requirements concerning governing board members.
As added by P.L.2-1993, SEC.5. Amended by P.L.56-1995, SEC.4.
IC 16-22-2-12
Vacancies on governing board for certain counties
Sec. 12. (a) This section applies to governing boards of a county
hospital in a county having a population of more than:
(1) eighteen thousand (18,000) but less than eighteen thousand
three hundred (18,300);
(2) twenty-seven thousand four hundred (27,400) but less than
twenty-seven thousand five hundred (27,500); and
(3) forty-one thousand (41,000) but less than forty-three
thousand (43,000).
(b) The appointing authority shall appoint a member to fill a
vacancy on the governing board within sixty (60) days after the
vacancy occurs.
As added by P.L.56-1995, SEC.5. Amended by P.L.170-2002,
SEC.104.
IC 16-22-2-13
Governing board membership limitation
Sec. 13. Except as otherwise required by state law, a member of
an appointing authority for the governing board of a hospital
established and operated under this article, except a hospital
established and operated under IC 16-22-8, may not serve on the
hospital's governing board.
As added by P.L.100-2002, SEC.7.