CHAPTER 6. LEASE OF HOSPITAL PROPERTY BY CITIES TO NONPROFIT ASSOCIATIONS
IC 16-23-6
Chapter 6. Lease of Hospital Property by Cities to Nonprofit
Associations
IC 16-23-6-1
Application of chapter
Sec. 1. This chapter applies to a city that:
(1) owns a hospital consisting of grounds, buildings, equipment,
and furnishings; and
(2) is located within a county with a nonprofit hospital
corporation, whose general corporate powers are exercised by
a board of directors composed of residents of the county:
(A) one (1) of whom must be a member of or a person
designated by the county executive;
(B) one (1) of whom may be a licensed physician; and
(C) all of whom are elected by the members of the
corporation, who must be representatives of each duly
organized church, religious association, labor union,
fraternal, charitable, military, and civic organization in the
county.
As added by P.L.2-1993, SEC.6.
IC 16-23-6-2
Conflicts of interest
Sec. 2. An individual is not prohibited from serving as a member
of the board of directors 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.
As added by P.L.2-1993, SEC.6.
IC 16-23-6-3
Authorization
Sec. 3. If the city fiscal body determines by resolution adopted at
a regular meeting that:
(1) the city should not operate the hospital; and
(2) it would be in the interests of the city to provide adequate
hospital care and nursing for the sick, injured, and disabled by
leasing the hospital grounds, buildings, equipment, and
furnishings to the corporation;
the city fiscal body may, on behalf of the city, authorize the
execution of a lease with the corporation of the property to be
operated as a hospital for not more than fifty (50) years, upon terms
and conditions agreed upon by the fiscal body and the corporation.
As added by P.L.2-1993, SEC.6.
IC 16-23-6-4
Qualified organizations
Sec. 4. A duly organized church, religious association, labor
union, fraternal, charitable, military, or civic organization referred to
in section 1 of this chapter is an entity that has the following:
(1) Duly adopted bylaws.
(2) A regular place of meeting in the county.
(3) A majority of its members are at least twenty-one (21) years
of age.
(4) A duly elected presiding officer and secretary.
(5) Had at least four (4) regular meetings in the county during
the calendar year preceding the annual meeting of the
organization.
As added by P.L.2-1993, SEC.6.
IC 16-23-6-5
Lease provisions
Sec. 5. A lease authorized by section 3 of this chapter must
provide that the corporation will do the following:
(1) Make all repairs to the property leased.
(2) Keep the property adequately insured.
(3) Maintain the property in as good condition as the property
is in at the time of the execution of the lease, natural wear and
tear excepted.
As added by P.L.2-1993, SEC.6.