CHAPTER 3. POWERS OF HOSPITAL GOVERNING BOARDS
IC 16-22-3
Chapter 3. Powers of Hospital Governing Boards
IC 16-22-3-1
General powers and responsibilities
Sec. 1. (a) The governing board is the supreme authority in a
hospital and is responsible for the management, control, and
operation of the hospital. The board has the powers and duties set
forth in this chapter.
(b) The governing board has the powers granted to boards of
nonprofit corporations under IC 23-17, including the powers to:
(1) join or sponsor membership in organizations and
associations that benefit hospitals;
(2) enter into partnerships and joint ventures;
(3) incorporate other corporations; and
(4) offer to the general public products and services of any
organization, association, partnership, or corporation described
under this subsection;
except to the extent the powers are inconsistent with this article or
are specifically prohibited by law.
(c) In construing subsection (b), the existence of the authority or
a power shall be determined in favor of the hospital if generally
authorized or existing under IC 23-17. A resolution of the governing
board is presumptive evidence of the existence of the hospital's
power under IC 23-17.
(d) The governing board may appoint and specify the privileges
of the medical staff, with the advice and recommendations of the
medical staff in accordance with section 9 of this chapter. The
medical staff is responsible to the board for the clinical and scientific
work of the hospital and shall advise the board regarding
professional problems and policies.
As added by P.L.2-1993, SEC.5.
IC 16-22-3-2
Acquisition of real and personal property for hospital purposes
Sec. 2. (a) The governing board may purchase, construct, remodel,
repair, enlarge, or acquire buildings and real or personal property for
hospital purposes, upon terms and conditions acceptable to the board.
(b) The governing board may use hospital funds if adequate
provision is made for working capital and other known and
anticipated hospital needs.
As added by P.L.2-1993, SEC.5. Amended by P.L.56-1995, SEC.6;
P.L.91-2002, SEC.7 and P.L.100-2002, SEC.8.
IC 16-22-3-3
Lease of property
Sec. 3. (a) The governing board may lease real or personal
property, with or without an option to purchase, on reasonable terms
and conditions. If a lease agreement gives the hospital an option to
purchase the property and if any part of the lease rental is to be
applied on the purchase price if the option is exercised, the
agreement shall be treated as a purchase and is subject to this chapter
and other Indiana laws relating to purchases by county hospitals.
(b) The governing board may authorize the purchase or lease of
a hospital building from the authority or an authority referred to in
IC 5-1-16-1.
As added by P.L.2-1993, SEC.5. Amended by P.L.43-1993, SEC.19.
IC 16-22-3-4
Equipment and supplies acquisitions
Sec. 4. The governing board may purchase or acquire materials,
services, equipment, and supplies required to operate and maintain
the hospital at prices the board considers reasonable.
As added by P.L.2-1993, SEC.5.
IC 16-22-3-5
Bids, proposals, or quotations submitted by trust
Sec. 5. (a) This section applies to the award of a contract under
this chapter for the procurement of property by acceptance of bids,
proposals, or quotations.
(b) A bid, proposal, or quotation submitted by a trust (as defined
in 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.5.
IC 16-22-3-6
Contracts for services
Sec. 6. The governing board may contract for the following
services on terms and conditions the governing board finds
reasonable:
(1) The services of consultants, architects, engineers, or other
professionals, including shared services or purchasing
organizations.
(2) Services reasonably required to operate and maintain the
hospital, including the management of the hospital.
As added by P.L.2-1993, SEC.5.
IC 16-22-3-7
Claims
Sec. 7. Claims against the hospital must be allowed and approved
by the governing board before payment by the disbursing officer.
However, the board may, subject to review and approval at the
board's next regular meeting, authorize the following:
(1) Compensation of hospital employees upon certification of
payrolls by the executive director.
(2) Payment of invoices for materials, services, equipment, and
supplies required for the operation and maintenance of the
hospital upon certification by the executive director of the
following:
(A) The invoices are true and correct.
(B) The items were ordered and received by the hospital.
The claim or invoice furnished by the supplier need not contain the
certificate provided for in IC 5-11-10-1.
As added by P.L.2-1993, SEC.5.
IC 16-22-3-8
Executive director
Sec. 8. The governing board shall appoint an executive director as
the administrative head of the hospital. The executive director:
(1) is the executive agent of the board in the administration of
the board's policies;
(2) is the liaison officer between the board and the medical
staff;
(3) shall employ hospital personnel; and
(4) has the other powers and duties delegated to the executive
director by the board or specifically assigned to the executive
director in this article.
As added by P.L.2-1993, SEC.5.
IC 16-22-3-9
Medical staff appointment; eligibility; standards and rules; staff
self-government
Sec. 9. (a) The governing board may determine appointments and
reappointments to the medical staff and delineate privileges of the
members of the medical staff.
(b) All licensed physicians are eligible for membership on the
medical staff of the hospital, but the board may establish and enforce
reasonable standards and rules concerning the qualifications for the
following:
(1) Admission to the medical staff.
(2) Practice in the hospital.
(3) Retention of membership.
(4) The granting of medical staff privileges within the hospital.
(c) The standards and rules described in subsection (b) may not
discriminate against a licensed physician of any school of medicine
but may, in the interest of good patient care, consider the applicant's
postgraduate medical education, training, experience, and other facts
concerning the applicant that may affect the physician's professional
competence. The rules may include a requirement for the following:
(1) The submission of proof that a medical staff member has
qualified as a health care provider under IC 16-18-2-163.
(2) The performance of patient care and related duties in a
manner that is not disruptive to the delivery of quality medical
care in the hospital setting.
(3) Standards of quality medical care that recognize the efficient
and effective utilization of hospital resources as developed by
the medical staff.
(d) The medical staff shall originate and the board must approve
bylaws and rules for self-government. The bylaws must provide for
a hearing for a physician whose medical staff membership the
medical staff has recommended for termination.
As added by P.L.2-1993, SEC.5.
IC 16-22-3-10
Personnel; compensation; policies
Sec. 10. Upon the recommendation of the executive director, a
governing board shall do the following:
(1) Fix the compensation, including incentives for productivity,
of all hospital employees.
(2) Adopt personnel and management policies consistent with
the governing boards of other hospitals in Indiana.
As added by P.L.2-1993, SEC.5.
IC 16-22-3-11
Permissible personnel programs and policies
Sec. 11. A governing board may do the following:
(1) Adopt an employee benefit program that may include a
vacation policy and employee discounts.
(2) Authorize expenditure of hospital funds for payment of
advertising and placement fees for personnel and physicians.
(3) Expend hospital funds in an amount not to exceed one-half
percent (0.5%) of hospital revenues for the preceding calendar
year for a program that directly contributes to the productivity
or morale of personnel, volunteers, or physicians. However, this
subdivision does not apply to:
(A) an employee benefit program under subdivision (1); or
(B) an employee compensation arrangement, including a
productivity bonus.
(4) Adopt a plan that provides for hospital employee sickness
or accident disability and contract for and purchase insurance
plans from an insurance company licensed to transact business
in Indiana.
(5) Contract for and purchase adequate pension and retirement
plans for hospital personnel from the public employees'
retirement fund of Indiana or from any company authorized to
do such business in Indiana.
(6) Enter into deferred compensation agreements with
employees and other contractual personnel and fund deferred
obligations by contracting with insurance companies licensed
to transact business in Indiana.
(7) Expend hospital funds to pay dues of the executive director
and department heads for memberships in local, state, or
national hospital or professional associations or organizations
that the board determines are of direct benefit to the hospital.
(8) Establish and operate employee registries for part-time or
temporary hospital employees.
(9) Pay a part or all of the costs of these plans out of hospital
funds.
(10) Expend hospital funds for reasonable expenses incurred by
persons and their spouses who are interviewed for employment
or for medical staff appointment and for reasonable moving
expenses for the persons and their spouses if employed or
appointed to the hospital medical staff.
(11) Expend hospital funds, advance tuition payments, or
establish a tuition refund program for the education or
professional improvement of nurses and other professional or
technical employees of the hospital for inservice training and
attending seminars or other special courses of instruction when
the board determines that the expenditures directly benefit the
hospital.
(12) Conduct business in a state adjacent to Indiana.
As added by P.L.2-1993, SEC.5. Amended by P.L.56-1995, SEC.7;
P.L.35-1997, SEC.6.
IC 16-22-3-12
Hospital financial records; annual report
Sec. 12. (a) The state board of accounts:
(1) shall approve or prescribe the manner in which the hospital
records are kept;
(2) except as provided in subsection (c), shall audit the records
of the hospital; and
(3) may approve forms for use by all hospitals or groups of
hospitals.
(b) The governing board may use the calendar year or a fiscal year
for maintaining hospital financial records. A hospital that receives a
financial subsidy from the county for hospital operations, excluding
mental health or ambulance services, during the preceding calendar
or fiscal year must file with the county executive and the county
fiscal body an annual report showing the income and expenses of the
operating fund for the preceding calendar or fiscal year by major
classification according to the chart of accounts approved by the state
board of accounts. If the hospital uses a calendar year for
maintaining financial records, the report must be filed not later than
the last Monday in March of each year. If the hospital uses a fiscal
year for maintaining financial records, the report must be filed not
later than ninety (90) days after the close of the fiscal year. The
annual report shall be published one (1) time. Hospital financial
records may be kept in hard copy, on microfilm, or via another data
system acceptable to the state board of accounts.
(c) A hospital may elect to have an audit required under
subsection (a) performed by an independent certified public
accounting firm that is experienced in hospital matters. The audit
report must be kept on file at the hospital and a copy must be
provided to the state board of accounts. The audit engagement by a
certified public accounting firm must be performed pursuant to
guidelines established by the state board of accounts.
(d) If a hospital elects to use an independent certified public
accounting firm under subsection (c), the hospital shall provide
written notice to the state board of accounts not less than one
hundred eighty (180) days before the beginning of the hospital's
fiscal year in which the hospital elects to be audited by an
independent certified public accounting firm. For that hospital fiscal
year, and each following fiscal year until the hospital terminates the
hospital's use of an independent certified public accounting firm, the
hospital shall use an independent certified public accounting firm
under subsection (c). A hospital shall terminate its use of an
independent certified public accounting firm under subsection (c) by
providing written notice to the state board of accounts not less than
one hundred eighty (180) days before the beginning of the hospital's
fiscal year in which the hospital elects not to be audited by an
independent certified public accounting firm. For that hospital fiscal
year, and each following fiscal year until the hospital elects to use an
independent certified public accounting firm as provided under this
subsection, the hospital must be audited by the state board of
accounts for purposes of section 12(a)(2) of this chapter. For any
fiscal year in which the hospital does not use an independent
certified public accounting firm under subsection (c), the hospital
shall be audited by the state board of accounts.
As added by P.L.2-1993, SEC.5. Amended by P.L.91-2002, SEC.8
and P.L.100-2002, SEC.9.
IC 16-22-3-13
Patient charges; building and improvement funds
Sec. 13. (a) The governing board shall establish reasonable
charges for patient care and other hospital services for the residents
of the county and may provide patient care and other hospital
services to nonresidents of the county upon terms and conditions the
board establishes by rule.
(b) The governing board may give appropriate discounts of
charges to patients.
(c) In establishing charges, the governing board may include a
reasonable charge for depreciation and obsolescence of property,
plant, and equipment.
(d) The board may periodically transfer all or part of the charges
for depreciation and obsolescence to a fund to be used by and at the
discretion of the board only for the purpose of building, remodeling,
repairing, replacing, or making additions to the hospital building or
buildings. However, in any year in which there is a tax levy for the
general operation and maintenance of the hospital, the board shall
not make a transfer to the fund. In an emergency, the board may
borrow from the fund for the operating fund of the hospital and shall
reimburse the fund within two (2) years.
(e) The authority granted to establish the fund does not limit the
power and authority of the board, the county executive, the county
fiscal body, or other units of government to finance hospital
buildings by other methods.
As added by P.L.2-1993, SEC.5.
IC 16-22-3-14
Hospital funds; authorized transfers
Sec. 14. (a) The governing board shall take, hold, disburse, and
dispose of, for the benefit of the hospital, all real or personal
property or other property that is a part of hospital funds in
accordance with this article.
(b) The board may accept gifts, devises, bequests, or grants upon
the conditions directed by the donor if the conditions are not contrary
to law. However, if the hospital was constructed by a county building
authority under IC 36-9-13, the powers of the board do not include
those powers vested by IC 36-9-13 in the building authority.
(c) The board may transfer a part of the hospital funds to a
nonprofit corporation organized under IC 23-7-1.1 (before its repeal
on August 1, 1991) or IC 23-17 that is:
(1) a hospital foundation organized and operated for the
exclusive benefit of the hospital; or
(2) a related or controlled entity;
if adequate provision is made for working capital and other known
and anticipated hospital needs.
(d) If a transfer includes public funds of the hospital, the public
funds transferred to the foundation or related or controlled entity may
be audited by the state board of accounts unless:
(1) the hospital foundation or related or controlled entity files
annually with the treasurer of the hospital a copy of an audit
report prepared by an independent certified public accountant;
and
(2) the audit report is on file at the hospital and is made
available to the state board of accounts.
As added by P.L.2-1993, SEC.5.
IC 16-22-3-15
Patient refunds fund
Sec. 15. The governing board may establish a special fund for
patient refunds in an amount not to exceed five thousand dollars
($5,000) if the money is deposited in a checking account in a
depository designated for the deposit of money of the hospital and
checks are issued by the person designated by the board. The special
funds are supplemental to those otherwise permitted by law.
As added by P.L.2-1993, SEC.5.
IC 16-22-3-16
Deposit of funds
Sec. 16. Money in the hospital funds shall be deposited in the
manner determined by the governing board.
As added by P.L.2-1993, SEC.5.
IC 16-22-3-17
Disposition and encumbrance of real and personal property;
immunity from liability
Sec. 17. (a) The governing board may mortgage all or part of an
interest in real or personal property owned by the hospital and may
enter into a sale and leaseback of hospital property on terms and
conditions acceptable to the board.
(b) The following property may be disposed of on terms and
conditions acceptable to the board:
(1) Real or personal property subject to a mortgage or sale and
leaseback arrangement.
(2) Real or personal property in which the hospital has an
ownership interest as a participant in an organization or activity
described in section 1(b) of this chapter.
(3) An arrangement in which at least two (2) hospitals
participate for the provision of any hospital or related services,
including participation or ownership as a tenant in common
with other hospitals.
(c) Except as provided in subsection (b), real or personal property
or an interest in real or personal property owned by the hospital may
be disposed of as follows:
(1) Personal property:
(A) that has limited or no use to the hospital; and
(B) that:
(i) has value not exceeding fifteen thousand dollars
($15,000); or
(ii) is traded upon purchase of other personal property;
may be disposed of without the necessity of advertising,
auctioning, or requesting bids.
(2) Real property that the board considers no longer necessary
for hospital purposes shall be sold after the following occur:
(A) The property is appraised by three (3) disinterested
owners of taxable real property of the county.
(B) The board publishes notice of the sale one (1) time at
least seven (7) days before the date of the sale.
(C) The sale is approved by the commissioners.
The board shall determine the time, terms, and conditions of the
sale of property.
(3) Personal property other than property described in
subdivision (1) shall be sold at public auction. The board shall
publish notice of the sale one (1) time at least seven (7) days
before the date of the sale. If sealed bids are solicited in the
published notice of the sale, the bids must be opened in public
on the date and time of the sale to satisfy the public auction
requirement.
Upon the sale of real property under this subsection and the payment
of the purchase price, the board and the commissioners shall execute
a deed of conveyance to the purchaser. The proceeds of all sales are
a part of the hospital funds to be held and used for the use and
benefit of the hospital.
(d) If a trust (as defined in IC 30-4-1-1(a)) submits a bid in a sale
or lease conducted under subsection (b), (c), or (e), the bid must
identify each:
(1) beneficiary of the trust; and
(2) settlor empowered to revoke or modify the trust.
(e) If it is determined by the board, the county executive, and the
county fiscal body, by joint resolution, that:
(1) the hospital should cease doing business as a county
hospital;
(2) the hospital should be terminated and dissolved; and
(3) the entire hospital building or buildings should be sold or
leased to a for-profit corporation, partnership, or entity;
the proposed sale or lease shall be considered publicly, and the
board, the county executive, and the county fiscal body shall follow
the procedures of IC 16-22-6-18 concerning notice and hearing on
the terms and provisions of the sale or lease. The terms and
provisions of the sale or lease shall be determined by the board, the
county executive, and the county fiscal body and shall be presented
at a hearing as required by IC 16-22-6-18.
(f) An individual who is a:
(1) board member in the member's capacity as a board member;
or
(2) member of:
(A) the county executive; or
(B) the county fiscal body;
is immune from potential or actual liability attributable to the
individual with respect to a sale or lease under subsection (e).
(g) In the event of a sale or lease under this section, the county is
not liable for:
(1) any liabilities of the hospital that:
(A) were incurred on or before; or
(B) are incurred at any time after;
the sale or lease date; or
(2) any future liabilities incurred by the successor entity;
unless otherwise agreed to by the county at the time of the sale or
lease in the sale or lease document. Any liabilities described in this
subsection are the responsibility of the purchasing or leasing entity,
unless agreed to otherwise in the sale or lease document.
(h) After the hearing on the proposed sale or lease, if it is
determined by the board, the county executive, and the county fiscal
body that the sale or lease should proceed, the hospital building or
buildings shall be sold or leased in accordance with proposed terms
and provisions.
(i) The board, the county executive, and the county fiscal body
shall execute:
(1) a deed of conveyance upon payment of the purchase price
if the buildings are sold; or
(2) a lease upon terms the board, the county executive, and the
county fiscal body consider reasonable if the buildings are
leased.
(j) The proceeds of the sale or lease of all of the hospital buildings
must first be applied to outstanding indebtedness attributable to the
hospital buildings. The commissioners shall deposit the balance of
the proceeds from the sale or lease and any property in the hospital
fund in:
(1) a nonexpendable interest bearing trust fund from which
claims are paid for county hospital claims for the indigent or
any other fund that the county executive and county fiscal body
designate; or
(2) the county general fund.
As added by P.L.2-1993, SEC.5. Amended by P.L.35-1997, SEC.7;
P.L.231-1999, SEC.13.
IC 16-22-3-18
Transfer of assets to nonprofit corporation or related hospital
entity; immunity from liability
Sec. 18. (a) If the board, the county executive, and the county
fiscal body determine that the community the hospital serves can best
be provided with hospital services through management,
enlargement, remodeling, or renovation of the hospital by a nonprofit
hospital corporation, the board, the county executive, and the county
fiscal body may agree by joint resolution, and after following the
procedures of IC 16-22-6-18 concerning notice and hearing, to
transfer all of the assets of the hospital to a nonprofit corporation.
(b) The transfer of the hospital assets to the nonprofit corporation
must be on terms and conditions and for consideration as appears
reasonable. The transfer agreement must require the nonprofit
corporation to assume and agree to pay any indebtedness attributable
to the hospital buildings. The size, composition, and qualifications
of the membership and the board of directors of the nonprofit
corporation must be set forth in the corporation's articles of
incorporation.
(c) An individual who is a:
(1) board member, in the member's capacity as a board member;
or
(2) member of:
(A) the county executive; or
(B) the county fiscal body;
is immune from potential or actual liability attributable to the
individual with respect to a transfer under subsection (b).
(d) In the event of a transfer under this section, the county is not
liable for:
(1) any liabilities of the hospital that:
(A) were incurred on or before; or
(B) are incurred at any time after;
the transfer date; or
(2) any future liabilities incurred by the successor entity;
unless otherwise agreed to by the county at the time of the transfer
in the transfer document. Any liabilities described in this subsection
are the responsibility of the entity to which the assets were
transferred, unless agreed to otherwise in the transfer document.
(e) The board, the county executive, and the county fiscal body
shall execute a deed of conveyance and other documents necessary
to transfer the assets of the hospital to the nonprofit corporation. The
county executive shall deposit the proceeds from the transfer in:
(1) a nonexpendable interest bearing trust fund from which
claims are paid for county hospital claims for the indigent or
any other fund that the county executive and county fiscal body
designate; or
(2) the county general fund.
(f) If the nonprofit corporation described in this section ceases
doing business, is terminated, or is dissolved, funds or property
remaining after payment of all lawful debts become the property of
the county. A provision to this effect must be included in the articles
of incorporation of the nonprofit corporation and may not be
amended or deleted without the written approval of the
commissioners.
(g) The board may sell, convey, or otherwise transfer real or
personal property from the hospital to an entity related to or
controlled by the hospital for constructing buildings on behalf of the
hospital. The transfer is not subject to the notice and appraisal
requirements under this section. The board may make the transfer
upon terms and conditions the board considers appropriate. The
board shall issue a deed of conveyance to the transferee.
As added by P.L.2-1993, SEC.5. Amended by P.L.35-1997, SEC.8.
IC 16-22-3-18.5
Conveyance of real or personal property to state authority for
lease back to hospital
Sec. 18.5. (a) Notwithstanding any requirement or restriction in
this chapter on the transfer of real or personal property of the
hospital, this section applies if the board determines to obtain
financing for capital improvements through the state authority.
(b) The board may convey real or personal property of the
hospital by sale or lease to the state authority for lease back to the
hospital from the state authority.
As added by P.L.43-1993, SEC.13.
IC 16-22-3-19
Medical care trust board
Sec. 19. (a) This section applies to a medical care trust board
appointed by a county executive to govern a nonexpendable trust
fund established under section 17(j) or 18(e) of this chapter.
(b) The county executive may adopt an ordinance providing that
the medical care trust board is subject to this section.
(c) After the effective date of an ordinance adopted under
subsection (b), the medical care trust board may do the following:
(1) Approve and the treasurer may disburse payment of a claim
against the trust for payment of hospital and medical services
provided to an indigent person and reasonable administrative
expenses, without the necessity of filing a claim with the county
auditor for approval by the county executive.
(2) Invest the funds of the trust:
(A) in accordance with IC 5-13-9 and guidelines adopted by
the board under IC 5-13-9-1; and
(B) without being subject to guidelines adopted by the
county executive under IC 5-13-9-1.
As added by P.L.2-1993, SEC.5. Amended by P.L.35-1997, SEC.9.
IC 16-22-3-20
Investment of hospital funds
Sec. 20. (a) As used in this section, "financial institution" has the
meaning set forth in IC 5-13-4-10.
(b) The board may invest money in the hospital funds within the
county or the state as the board determines. The money may be
invested in the following:
(1) Any account paying interest and subject to withdrawal by
negotiable orders of withdrawal, unlimited as to amount or
number (NOW accounts).
(2) Passbook savings accounts.
(3) Certificates of deposit.
(4) Money market deposit accounts.
(5) Any interest bearing account that is authorized to be set up
and offered by a financial institution or brokerage firm
registered and authorized to do business in Indiana.
(6) Repurchase or resale agreements involving the purchase and
guaranteed resale of any interest bearing obligations issued or
fully insured or guaranteed by the United States or any United
States government agency in which type of agreement the
amount of money must be fully collateralized by interest
bearing obligations as determined by the current market value
computed on the day the agreement is effective.
(7) Mutual funds offered by a financial institution or brokerage
firm registered and authorized to do business in Indiana.
(8) Securities backed by the full faith and credit of the United
States Treasury or fully insured or guaranteed by the United
States or any United States government agency.
(9) Pooled fund investments for participating hospitals offered,
managed, and administered by a financial institution or
brokerage firm registered or authorized to do business in
Indiana.
This subsection does not prevent the board from using money in the
hospital funds to capitalize projects undertaken under section 1(b)
and 1(c) of this chapter.
(c) Any interest derived from an investment under subsection (b)
becomes a part of the hospital funds invested. Interest derived from
the investment of money raised by bonded or other indebtedness in
excess of funds needed for hospital buildings may be applied by the
governing board to the appropriate bond redemption, interest, or
sinking fund.
As added by P.L.2-1993, SEC.5.
IC 16-22-3-21
Insurance
Sec. 21. (a) The governing board may contract for and purchase,
for the protection of the hospital, all types of insurance provided for
in the Indiana insurance law in amounts and under terms and
conditions the board considers reasonable and necessary. The
insurance may include liability or malpractice coverage for the
members of the board, the officers, employees, volunteers, and
members of medical staff committees while performing services for
the hospital. The board may, for the purpose of acquiring malpractice
coverage, assist in the formation of a nonassessable mutual insurance
company under IC 27-1-6 and IC 27-1-7-19.
(b) The governing board of a hospital organized or operated under
this article may enter into a group purchasing agreement to purchase
medical malpractice insurance with the following:
(1) One (1) or more hospitals organized or operated under this
article.
(2) One (1) or more hospitals organized or operated under
IC 16-23.
As added by P.L.2-1993, SEC.5. Amended by P.L.91-2002, SEC.9
and P.L.100-2002, SEC.10.
IC 16-22-3-22
Leases
Sec. 22. (a) The governing board may lease a part of the hospital
buildings if the board determines that the use of the leased premises
will aid the hospital in the performance of the hospital's services. A
lease must:
(1) be in writing;
(2) be for definite periods; and
(3) require payment of lease rentals at least monthly.
(b) If the board enters into a lease or sublease contract with the
state authority, the board may pledge as security for payment under
the contract the funds that the governing board receives from a tax
levy under section 27 of this chapter.
As added by P.L.2-1993, SEC.5. Amended by P.L.43-1993, SEC.14.
IC 16-22-3-23
Related facilities and services
Sec. 23. The governing board may do the following:
(1) Permit the hospital to provide services for the mentally
disordered under IC 12-29 and may limit the services to short
term care.
(2) Contract for or establish and maintain a training school for
nurses and for paramedical personnel, with a curriculum that
conforms to the requirements of the Indiana state board of
nursing or other appropriate board.
(3) Acquire suitable facilities for housing graduate and student
nurses in training or employed by the hospital.
(4) Provide suitable facilities for the temporary detention and
examination of persons whose sanity is being officially inquired
into preparatory to admission to hospitals for the insane.
However, a person known to be dangerously insane or who has been
adjudged insane shall not be confined in or about the hospital unless
specific facilities necessary for the temporary confinement of these
patients, separate and apart from the other patients, have been
provided in the hospital.
As added by P.L.2-1993, SEC.5.
IC 16-22-3-24
Legal status of board
Sec. 24. The board is a body corporate and politic with the style
of "The Board of Trustees of __________ Hospital", to include the
full name of the hospital. In that name and capacity, the board may
do the following:
(1) Sue and be sued and plead and be impleaded but all actions
against the board must be brought in the circuit or superior
courts of the county in which the hospital is located.
(2) Possess the real and personal property of the hospital and
the hospital funds in the hospital's corporate name for the
hospital's use and benefit.
(3) Exercise the other powers, duties, and responsibilities set
forth in this article.
As added by P.L.2-1993, SEC.5.
IC 16-22-3-25
Eminent domain powers
Sec. 25. If the governing board and the owners of real property
needed for hospital purposes cannot agree on the price to be paid for
the real property, the board may report the facts to the commissioners
who have the power of eminent domain, and condemnation
proceedings shall be instituted by the county executive and
prosecuted in the name of the county where the hospital is located or
to be located by an attorney representing the county.
As added by P.L.2-1993, SEC.5.
IC 16-22-3-26
Loans; sale or factor of accounts receivable; federal loans or
guaranties
Sec. 26. (a) The governing board may obtain loans for hospital
expenses in amounts and on terms and conditions agreeable to the
board and may secure the loans by pledging accounts receivable or
other security in hospital funds. If the board enters into a loan
agreement for the borrowing of funds from the state authority, the
board may pledge as security for payment under the agreement the
funds the board receives from a tax levy under section 27 of this
chapter.
(b) The board may sell or factor accounts receivable on terms and
conditions agreeable to the board.
(c) A county, city, or health and hospital corporation owning and
maintaining or leasing at least one (1) hospital or related facilities,
a county hospital association under IC 16-22-6, and a building
authority under IC 36-9-13 may enter into an agreement with the
United States or a department, an agency, or an instrumentality of the
United States with respect to loans or guaranties for hospital or
related purposes and may borrow money on the terms and conditions
of the agreement.
(d) The loans may be:
(1) evidenced by bonds, notes, contractual agreements, or other
evidences of indebtedness;
(2) secured in whole or in part by:
(A) pledge of the full faith and credit as a general obligation
of the borrower;
(B) the income and revenues of the hospital or related
facilities;
(C) rental from the lease of hospital facilities; or
(D) any combination of clauses (A) through (C); and
(3) additionally secured by a mortgage or deed of trust of all or
part of the real or personal property, or both, of the hospital.
(e) Bonds, notes, or other evidences of indebtedness issued in
connection with a federal loan under this section may be sold and
delivered at private sale without the necessity of public sale or public
offering.
As added by P.L.2-1993, SEC.5. Amended by P.L.43-1993, SEC.15.
IC 16-22-3-27
Tax levy support of hospital
Sec. 27. (a) The governing board may request support from the
county, either by appropriation from the county general fund or by
a separate tax levy, by filing with the county executive on or before
August 1 a written budget of the amount estimated to be required to
maintain, operate, or improve the hospital for the ensuing year.
(b) If the county provides a direct financial subsidy to a hospital
from a tax levy at the time the board exercises the powers under
section 1(b) of this chapter, the board may not provide the funds
from a tax levy to an entity created under section 1(b) of this chapter
for more than three (3) years. After three (3) years, all funds, with
interest, must be repaid within ten (10) years.
(c) If the board enters into a lease or sublease contract or a loan
agreement with the state authority, the board may request the county
to adopt a separate tax levy to support the board's obligation to make
payments under that contract or agreement.
As added by P.L.2-1993, SEC.5. Amended by P.L.43-1993, SEC.16.
IC 16-22-3-27.5
Payment of lease or loan from taxes
Sec. 27.5. (a) This section applies in a county when:
(1) the board has authorized the hospital to enter into a lease or
sublease contract or a loan agreement with the state authority
under this chapter; and
(2) the lease or sublease contract or the loan agreement provides
that a portion of the lease or loan payment is to be paid from
taxes.
(b) The county council or the city-county council in the case of a
county with a consolidated city shall annually levy a tax that is
sufficient to produce each year along with other available funds an
amount that is sufficient to pay the portion of the lease or loan
payment that is required to be paid from taxes.
(c) The board shall transfer the following to a fund to be used to
pay the portion of the lease or loan payment that is not required to be
paid from taxes:
(1) Any net revenue of the hospital that is required to be used
for the lease or loan payment.
(2) Any net revenue of the hospital that is required to be
retained as a reserve for a purpose that the board determines if
the board determines that the money is not needed in reserve for
additional construction, equipment, betterment, maintenance, or
operation.
(d) In fixing and determining the levy that is necessary for the
lease or loan payment that is payable from taxes, the county council
shall consider the amounts that have been transferred from the net
revenues of the hospital under subsection (c).
(e) If funds other than taxes are not available to pay the portion of
the lease or loan payment that is required to come from taxes, a
county is not relieved from the county's obligation to pay from taxes
any lease or loan payment that is payable from taxes.
(f) The tax levy provided in this section is reviewable in the
manner that other tax levies are reviewable to ascertain that the levy
is sufficient to produce the amount of the lease or loan payment that
is required to be paid from taxes.
(g) One-half (1/2) of the annual lease or loan payment shall be
paid semiannually to the state authority after the semiannual
settlement of tax collections.
As added by P.L.43-1993, SEC.17. Amended by P.L.56-1995, SEC.8.
IC 16-22-3-28
Other powers of board
Sec. 28. (a) The governing board may enter into agreements with
credit card companies or organizations authorized to do business in
Indiana and may accept credit card payments from patients for
services provided.
(b) The board may, in the establishment and maintenance of
hospital records, use automated data processing systems and
purchase, lease, operate, or contract for the use of automated data
processing equipment subject to section 6 of this chapter and section
22 of this chapter.
(c) In addition to IC 5-14-1.5-6.1(b), a hospital organized or
operated under this article may hold executive sessions to do any of
the following:
(1) Discuss and prepare bids, proposals, or arrangements that
will 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 personnel,
if the hospital does not conduct any official action (as defined
in IC 5-14-1.5-2(d)).
(d) IC 5-14-1.5-5, IC 5-14-1.5-6.1, and IC 5-14-1.5-7 apply to
executive sessions held under subsection (c).
(e) A hospital organized or operated under this article may hold
confidential, until the information contained in the records is
announced to the public, records of a proprietary nature that if
revealed would place the hospital at a competitive disadvantage, such
as the following:
(1) Terms and conditions of preferred provider arrangements.
(2) Health care provider recruitment plans.
(3) Competitive marketing strategies regarding new services
and locations.
As added by P.L.2-1993, SEC.5. Amended by P.L.35-1997, SEC.10;
P.L.91-2002, SEC.10 and P.L.100-2002, SEC.11.
IC 16-22-3-29
Safekeeping of patient valuables
Sec. 29. (a) The governing board may establish a policy with
regard to providing a place for the safekeeping of valuable personal
property of patients. The patients or the responsible relatives of the
patients shall be notified by posting a notice in a public and
conspicuous place or manner at the admitting desk or office in the
hospital that a place is provided.
(b) If the valuable personal property is not delivered to the person
in charge of the place for deposit, the hospital and the hospital's
officers, agents, or employees are not liable for any loss or damage
to the property, unless an emergency admission occurs and the
patient is unable to deliver the valuable personal property to the
place for deposit and no responsible relative is present.
(c) If the personal property is delivered for safekeeping to the
person in charge of the office for deposit, the hospital is not liable for
loss or damage to the property from any cause in an amount
exceeding six hundred dollars ($600), even if the property is of
greater value.
As added by P.L.2-1993, SEC.5.
IC 16-22-3-30
Liberal construction of board powers
Sec. 30. The powers of the board described in this chapter shall
be liberally construed to effect the purposes of this article and to
enable the hospital to be maintained and operated as a first class
hospital.
As added by P.L.2-1993, SEC.5.