CHAPTER 1. CITY HOSPITALS IN THIRD CLASS CITIES
IC 16-23
ARTICLE 23. MUNICIPAL AND OTHER TYPES OF
HOSPITALS
IC 16-23-1
Chapter 1. City Hospitals in Third Class Cities
IC 16-23-1-1
Application of chapter
Sec. 1. This chapter applies to the following:
(1) Each third class city that:
(A) adopted IC 16-12.2-5 (before its repeal on July 1, 1993);
or
(B) adopts this chapter;
by ordinance.
(2) Each city to which IC 16-12.2-5 applied before September
1, 1981.
As added by P.L.2-1993, SEC.6.
IC 16-23-1-2
Appropriations and tax levies; conditions
Sec. 2. The city and county officers shall appropriate sufficient
money annually and levy a tax annually on the taxable property in
the county to meet a deficiency that exists, or is reasonably
anticipated by the board of directors of the hospital, to maintain,
equip, and operate the city hospital for the ensuing calendar year if
the hospital meets the following conditions:
(1) Is established, maintained, and operated inside or within two
(2) miles of and in the same county as a city subject to this
chapter.
(2) Is established at a time when there is no other city, county,
or public hospital maintained and operated in that county.
(3) Is open to all residents of the county without discrimination
in the rates, facilities, and services.
As added by P.L.2-1993, SEC.6.
IC 16-23-1-3
Governing board; members
Sec. 3. (a) A governing board shall manage the hospital. The
board consists of seven (7) members, all of whom must be qualified
voters of the county in which the hospital is located.
(b) One (1) or two (2) of the members may be a licensed and
practicing physician. One (1) member may be a registered nurse.
(c) The governing board is a separate legal entity under the name
and style of "Board of Directors of _________ Hospital, _________,
Indiana".
As added by P.L.2-1993, SEC.6. Amended by P.L.91-2002, SEC.15
and P.L.100-2002, SEC.16.
IC 16-23-1-4
Appointing board; members; oath
Sec. 4. (a) Appointments to the governing board shall be made by
an appointing board consisting of the following:
(1) The city executive of the city in which the hospital is
located.
(2) A member of the county fiscal body to be chosen by the
county fiscal body of the county.
(3) A member of the county executive to be chosen by the
county executive at the county executive's regular January
meeting each year.
(b) The members of the appointing board shall take and subscribe
an oath for the honest and faithful performance of the members'
duties. The oath shall be filed in the office of the county auditor. The
appointing board serves without bond.
As added by P.L.2-1993, SEC.6.
IC 16-23-1-4.1
Governing board membership limitation
Sec. 4.1. A member of an appointing authority for the governing
board of a hospital established and operated under this article may
not serve on the hospital's governing board.
As added by P.L.100-2002, SEC.17.
IC 16-23-1-5
Appointing board; meetings
Sec. 5. (a) The appointing board shall hold regular meetings to
appoint members of the governing board on the third Monday of
January in each year, but may adjourn from day to day until
appointments are made for all expired or vacant memberships on the
governing board.
(b) Except as provided in section 7 of this chapter, a vacancy
existing on the governing board may be filled at a special meeting
called by the county auditor or by any two (2) members of the
appointing board, on five (5) days notice to all members not joining
in the call or without notice when all of the appointing board are
present.
(c) All meetings of the appointing board shall be held at the
county executive's office unless by unanimous consent the appointing
board determines to hold a meeting in the city executive's office.
As added by P.L.2-1993, SEC.6.
IC 16-23-1-6
Board of directors; conflicts of interest
Sec. 6. 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 16-23-1-7
Governing board; vacancies; candidates
Sec. 7. 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. Each
candidate submitted by the governing board must meet the
requirements concerning board members.
As added by P.L.2-1993, SEC.6.
IC 16-23-1-8
Governing board; vacancies; appointments
Sec. 8. (a) 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.
(b) If the appointing authority requests and receives a second list
of three (3) candidates under subsection (a)(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.
(c) The appointment for a vacancy shall be made within sixty (60)
days of the submission of the initial list of candidates under section
7 of this chapter.
As added by P.L.2-1993, SEC.6.
IC 16-23-1-9
Governing board; terms
Sec. 9. (a) The directors shall be appointed on the third Monday
of January.
(b) The initial terms of the governing board are as follows:
(1) Two (2) members for one (1) year.
(2) Two (2) members for two (2) years.
(3) One (1) member for three (3) years.
(4) Two (2) members for four (4) years.
(c) Each subsequent term is for four (4) years.
(d) The term of each member begins February 1 in the year of
appointment at the expiration of the member's predecessor's term and
continues four (4) years and until a successor is appointed and
qualified. However, an interim member chosen to fill a vacancy
begins tenure at the time specified in the member's certificate of
appointment and serves the unexpired term of the member the
interim member succeeds.
As added by P.L.2-1993, SEC.6.
IC 16-23-1-10
Governing board; time of appointments; continuation of
appointing board membership
Sec. 10. (a) The appointments of members of the hospital
governing board may not be made before the third Monday of
January in the respective years and shall be made by the appointing
board.
(b) If the county executive in any year fails to appoint one (1) of
the board's members to the appointing board for the current year, the
county executive who served on the appointing board in the
preceding year, if the individual is still a member of the county
executive, continues as a member of the appointing board until the
county executive makes the board's annual appointment.
As added by P.L.2-1993, SEC.6.
IC 16-23-1-11
Board of directors; certificates of appointment; oaths and bonds
Sec. 11. (a) The appointing board established under section 4 of
this chapter shall issue a certificate of appointment to each member
of the board of directors chosen. The certificate shall be executed by
a majority of the appointing board and attested by the county auditor
who shall act as secretary of the appointing board.
(b) Each member of the governing board shall execute and file
with the county recorder, including a copy in the office of the city
clerk-treasurer, an oath and a bond in the amount of two thousand
dollars ($2,000) for the honest and faithful performance of the
member's duties. The bonds are subject to approval by the city
executive. If a surety company bond is given, the cost of the bond
shall be paid from hospital funds. The cost of recording the bond and
oath shall also be paid from the proper hospital funds.
As added by P.L.2-1993, SEC.6.
IC 16-23-1-12
Governing board meetings; time and place; quorum
Sec. 12. (a) The governing board shall hold one (1) regular
meeting each month at a time and place to be fixed by the board. The
meeting must be held in a convenient place in the city in which the
hospital is located. Special meetings of the board may be held on
written notice by the president, the secretary, or any three (3)
members of the board to the remaining members. Personal
attendance at a meeting constitutes a waiver of notice.
(b) A majority of all members of the board constitutes a quorum
for the transaction of business at any regular or special meeting. A
majority vote of all members of the board is required on all questions
or business.
As added by P.L.2-1993, SEC.6.
IC 16-23-1-13
Treasurer; city clerk-treasurer
Sec. 13. (a) The city clerk-treasurer is ex officio treasurer of the
board of directors, unless the board appoints a separate treasurer
under section 14 of this chapter. The clerk-treasurer serves without
additional compensation and does not have a vote on any matter or
question coming before the board.
(b) A certificate of official character and additional oath or bond
is not required of the clerk-treasurer, but the city fiscal body, in
fixing the amount of the official bond as clerk-treasurer, shall take
into consideration the amount of money under the clerk-treasurer's
control for hospital purposes, as well as other city funds.
As added by P.L.2-1993, SEC.6.
IC 16-23-1-14
Separate treasurer
Sec. 14. (a) If the governing board desires to have a separate
treasurer, the board shall adopt a resolution providing for a separate
treasurer for the hospital and the governing board. The resolution
must be adopted at least one hundred (100) days before the beginning
of a calendar year and takes effect the first day of the next calendar
year after the passage of the resolution. A true copy of the resolution
of the board shall be certified, within ten (10) days after adoption by
the board, to the city legislative body and shall be filed in the city
clerk-treasurer's office. The city legislative body shall approve or
disapprove the board's resolution, by ordinance or resolution of the
city legislative body, at the next regular meeting held after the
resolution is adopted by the board and after the deposit of a copy of
the resolution in the city clerk-treasurer's office. The failure of the
city legislative body to act at the next regular meeting is not a waiver
of the right to do so, and the time provisions for the city legislative
body's action are directory and not mandatory. The board resolution
and city legislative body resolution or ordinance of approval must be
adopted not later than November 1 of any given year to authorize the
appointment of a separate treasurer for the board on January 1 of the
following year.
(b) Upon the adoption of an ordinance or a resolution under
subsection (a) by the city legislative body and the completion of the
board and city legislative body action, the governing board shall
appoint a hospital treasurer to serve for the ensuing year in place of
the city clerk-treasurer.
(c) The treasurer appointed each year may be a member of the
board or any other competent person residing in the county in which
the hospital is situated. The treasurer shall subscribe an oath and
execute a bond in the amount required by the board for the proper
and honest performance of duties, to the approval of the hospital
board, with proper surety on the bond.
(d) The provision for a separate treasurer of the hospital and board
remains in effect without further proceedings of the board or council,
unless the board and city legislative body restore the ex officio status
of the city clerk-treasurer for the board effective at the beginning of
the next calendar year. The resolution of the board and resolution or
ordinance of the city legislative body also must be adopted not later
than November 1 before the change takes effect.
(e) The board shall fix the separate treasurer's compensation in an
amount not exceeding six hundred dollars ($600) each year. If the
treasurer is a member of the board, the compensation is in addition
to the salary fixed for board members.
As added by P.L.2-1993, SEC.6.
IC 16-23-1-15
Duties of treasurer
Sec. 15. The treasurer shall receive, deposit, and pay out all
money of the board and hospital as ordered and shall sign all checks
or other evidences of indebtedness when authorized by board action.
As added by P.L.2-1993, SEC.6.
IC 16-23-1-16
Governing board officers
Sec. 16. (a) The governing board shall organize each year by the
election of officers at the regular February meeting or the first called
meeting in that month. The officers of the board are president, vice
president, secretary, and treasurer. The officers must be board
members, except that the board may appoint a separate treasurer
from outside the board membership as provided by section 14 of this
chapter.
(b) The officers serve from the date of election until February 1
of the next year and until respective successors are elected and
qualified.
(c) If a vacancy exists in any office at a time other than the date
for the annual election of officers, the governing board shall fill the
vacancy for the unexpired term.
As added by P.L.2-1993, SEC.6.
IC 16-23-1-17
Duties of governing board officers
Sec. 17. (a) The president shall preside at the regular and special
meetings of the governing board and shall perform all other duties
that are authorized or required by the board or the board's bylaws,
rules, and regulations.
(b) The vice president shall discharge the duties of the president
if any of the following occurs:
(1) The president is incapacitated or absent.
(2) There is a vacancy in the office of president.
(3) The president relinquishes the president's duties as presiding
officer at any meeting.
(c) The secretary serves as executive officer of the board, acting
for the board and exercising the powers and performing the duties at
board meetings and during the intervals between meetings that the
board authorizes.
(d) At any meeting when only one (1) officer is present and the
officer relinquishes the officer's duties or when the president and
vice president are both absent, the members present shall choose a
presiding officer from the members in attendance for that meeting.
As added by P.L.2-1993, SEC.6.
IC 16-23-1-18
Compensation of governing board members and officers
Sec. 18. (a) The governing board shall, by resolution, fix the
compensation of the officers and board members in a reasonable
amount and may fix a higher amount for the officers who perform
additional duties outside board meetings. A certified copy of the
resolution shall be submitted to the city fiscal body.
(b) The city fiscal body may approve or reject the compensation
proposed by the board, but the city fiscal body may not increase or
decrease the amount fixed by the board.
(c) If the board's resolution is confirmed and the salaries are
approved by the city fiscal body, the compensation takes effect at the
time fixed in the resolution.
(d) The compensation of board members may be fixed on an
annual basis or on a specified amount for each meeting, but may not
exceed the compensation of members of the city fiscal body. This
limitation does not apply to the officers of the board who perform
duties outside of the board meetings.
As added by P.L.2-1993, SEC.6.
IC 16-23-1-19
Duties of governing board
Sec. 19. (a) The governing board shall do the following:
(1) Control and manage the city hospital.
(2) Make and establish all necessary or proper bylaws and rules
for the maintenance and operation of the hospital.
(3) Fix reasonable rates to patients for rooms, care, treatment,
and service that are necessary or proper to fulfill the purposes
and functions of the hospital.
(b) 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)).
(c) 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 (b).
(d) 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,
including 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.6. Amended by P.L.91-2002, SEC.16
and P.L.100-2002, SEC.18.
IC 16-23-1-19.5
Insurance
Sec. 19.5. 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 16-22.
As added by P.L.91-2002, SEC.17 and P.L.100-2002, SEC.19.
IC 16-23-1-20
Nonprofit operation; rate reductions
Sec. 20. The board may not operate the hospital for profit, but
shall attempt to make the revenues from patients and other income
equal the expense of operation, maintenance, and equipment if
practicable. The board may admit and care for the number of patients
who are in need of hospitalization and are unable to pay for the
hospitalization in whole or in part as the facilities of the hospital will
permit. The board may reduce the rates to be charged for these
patients or admit these patients without charge.
As added by P.L.2-1993, SEC.6.
IC 16-23-1-21
Discrimination prohibited
Sec. 21. (a) The hospital may not discriminate among patients due
to the following:
(1) Race, color, or sex.
(2) Occupational, economic, or social status.
(3) Political or religious belief or the lack of political or
religious belief.
(b) The hospital must also be open to all licensed physicians of
the county and the patients of licensed physicians on equal terms and
under uniform rules.
As added by P.L.2-1993, SEC.6.
IC 16-23-1-22
Equipment and personal property
Sec. 22. The governing board may do the following:
(1) Purchase or lease equipment, appliances, and other personal
property for the operation and maintenance of the hospital.
(2) Sell or exchange equipment or personal property of the
hospital or trade the equipment or personal property for other
equipment or property to be purchased or acquired.
As added by P.L.2-1993, SEC.6.
IC 16-23-1-23
Procurement contracts; trust bids, proposals, and quotations
Sec. 23. (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.6.
IC 16-23-1-24
Loans in anticipation of taxes
Sec. 24. (a) If the city fiscal body authorizes the borrowing by
ordinance, the board of directors may borrow money by negotiating
a temporary loan in anticipation of taxes already levied and in
process of collection or distribution in the current year.
(b) The notes, warrants, or other evidences of indebtedness must:
(1) be executed by the city executive and attested by the
clerk-treasurer; and
(2) be payable not later than the end of the calendar year in
which the auditor of the county or the clerk-treasurer of the city
will collect and distribute the taxes in anticipation of which the
temporary loan is made and the money borrowed.
As added by P.L.2-1993, SEC.6.
IC 16-23-1-25
Superintendent; personnel; business manager; pension or
retirement plan; powers and duties
Sec. 25. (a) The governing board shall employ an experienced and
a qualified person as superintendent of the hospital and other agents,
employees, representatives, and servants that the board considers
necessary. The board may fix salaries or compensation upon terms
and conditions and with powers and duties the board considers
proper. The board may delegate to the secretary or to the
superintendent any of the board's powers under this section. The
board, or the superintendent or secretary under authority granted by
the board, may terminate the employment of a person appointed
under this section at any time and with or without notice, except the
superintendent and business manager.
(b) The governing board may also do the following:
(1) Appoint a business manager for the hospital.
(2) Give the manager powers and duties over the administration
of the hospital.
(3) Pay the manager the compensation that the board considers
proper.
(c) The governing board may, upon due investigation, authorize
and place into effect a fair and reasonable pension or retirement plan
for the hospital personnel with a reputable and an experienced
company engaged in that business.
(d) All persons appointed or employed by the board under this
section serve in the appointed or employed capacities, exercise the
powers, and perform the duties that are authorized by the board or by
the secretary of the board under authority granted by the board.
However, the right of employment or termination of employment of
the superintendent or business manager must be exercised by the
board and may not be delegated to the secretary or any other person
or officer.
As added by P.L.2-1993, SEC.6.
IC 16-23-1-26
Estimate and budget
Sec. 26. (a) Before August 2 of each year, the governing board
shall do the following:
(1) Analyze, estimate, compute, and consider the following for
the current year and the next year for which the budget is being
prepared:
(A) The income from patients, trust funds, gifts, donations,
and all other sources during the current year and receipts that
the board may reasonably anticipate.
(B) The expenditures already made and that may reasonably
be anticipated for the hospital, including the following:
(i) The price trends in food, supplies, equipment, and other
items of personal property required in the hospital.
(ii) The present and prospective number of patients using
the hospital during the period for which the estimates are
made.
(iii) Other facts, conditions, and circumstances that may
probably affect the income or expenses of the hospital
during the period.
(2) Determine whether there will be a deficiency in the funds
necessary to maintain, equip, and operate the hospital in the
next calendar year.
(b) The estimate and budget must be:
(1) in writing;
(2) signed in triplicate by at least a majority of the board; and
(3) certified by the secretary of the board.
(c) Before August 2 of each year, one (1) copy of the estimate and
budget shall be filed in the office of the auditor of the county and one
(1) copy shall be filed in the office of the clerk-treasurer of the city.
The third copy must remain on file with the secretary of the board.
As added by P.L.2-1993, SEC.6.
IC 16-23-1-27
Tax levy without anticipated deficiency prohibited
Sec. 27. If the estimate and budget show no anticipated deficiency
for the next calendar year, the city and the county may not levy any
tax on the property of the city or county for the ensuing year.
As added by P.L.2-1993, SEC.6.
IC 16-23-1-28
Anticipated deficiency; tax levy
Sec. 28. (a) If the budget and estimate filed in the auditor's office
of the county in any year shows an anticipated deficiency, the
amount of the deficiency shall be set out in the copy of the budget
and estimate filed, and the board shall request that the fiscal body of
the county appropriate sufficient funds and levy a sufficient tax rate
on the taxable property of the county to meet the deficiency. The
county auditor shall, upon the basis of the request, compute the
amount of money necessary to be appropriated and the amount of tax
levy necessary to be made on the taxable property of the county to
meet the estimated deficiency in the anticipated hospital funds for the
ensuing calendar year. The auditor shall place the tax levy before the
county fiscal body at the fiscal body's annual budget meeting in
September of the same year the request is filed.
(b) The county fiscal body shall place the amount of the
anticipated deficiency in the county budget for the next calendar year
and shall levy a sufficient tax on all taxable property in the county to
meet the anticipated deficiency. However, the tax rate fixed by the
county fiscal body in any one (1) year may not exceed three and
thirty-three hundredths cents ($0.0333) on each one hundred dollars
($100) of taxable property in the county. The levy is known as the
hospital aid tax.
As added by P.L.2-1993, SEC.6. Amended by P.L.6-1997, SEC.169.
IC 16-23-1-29
Appropriations; special hospital aid tax
Sec. 29. (a) If the county fiscal body is not authorized to
appropriate sufficient funds under this chapter to meet an anticipated
deficiency in any one (1) year reported and filed in the offices of the
county auditor and city clerk-treasurer, the city fiscal body may
appropriate a sufficient amount of funds for the next calendar year
to meet the balance of the anticipated deficiency and levy a special
hospital aid tax on all taxable property in the city for this purpose.
(b) The rate fixed by the city fiscal body for a hospital aid tax in
any one (1) year may not exceed two and thirty-three hundredths
cents ($0.0233) on each one hundred dollars ($100) of taxable
property. The tax is in addition to any tax levied by the city for the
retirement of bonds or other evidences of indebtedness and payment
of interest charges for the alteration, repair, or improvement of the
hospital, including the construction of additions and extensions to the
hospital.
As added by P.L.2-1993, SEC.6. Amended by P.L.6-1997, SEC.170.
IC 16-23-1-30
Emergency appropriations
Sec. 30. The fiscal body of the county and the fiscal body of the
city may make additional appropriations of funds during any
calendar year to meet an emergency for hospital expenditures
authorized under this chapter, payable out of any part of the general
fund of the county or city not otherwise appropriated.
As added by P.L.2-1993, SEC.6.
IC 16-23-1-31
Appropriation approval; review; revision; annual reports
Sec. 31. (a) If the annual budget and appropriations, or any
additional appropriations or transfers of money, made or proposed by
the board of directors, excluding any cumulative building money:
(1) is not based upon or derived in part from a tax levy on
property in the county or city; and
(2) involves only the funds of the hospital derived wholly from
other sources than property taxes;
the board only needs to adopt a resolution for the approval of the
budget appropriations, additional appropriations, or transfers and file
a true copy of the budget appropriations, additional appropriations,
or transfers and the resolution in the offices of the county auditor and
city clerk-treasurer within seven (7) days after board action for the
information of the public.
(b) If the funds are not derived from taxation, the city fiscal body
may review, consider, and file objections and take an appeal to the
department of local government finance upon the following:
(1) An annual budget and any appropriations in the budget and
request the reduction or elimination of any item.
(2) Additional appropriations or transfers of funds, or any part
of additional appropriations or transfers of funds, within ten
(10) days after the certificate has been filed in the
clerk-treasurer's office.
The ruling and action of the department of local government finance
is final and conclusive.
(c) The annual budget and appropriations may be revised by the
board of directors by increasing or decreasing items in the budget
based on revenues derived from sources other than property taxes
and by transfer from any items of the budget and appropriations to
other items of the budget, without giving legal notice or any public
hearing. However, a copy of each resolution changing the budget or
any appropriations or transfers of funds shall be filed with the city
clerk-treasurer and county auditor within seven (7) days after the
passage of each resolution. The resolution is subject to appeal by the
city fiscal body to the department of local government finance for
final action in the manner and within the period provided in this
section.
(d) The governing board shall annually file a condensed annual
report of receipts and expenditures of all hospital funds. Expenses or
income items may be summarized in a fair and an accurate manner
for the information of all taxpayers and citizens. A copy of the
annual report covering the preceding calendar year shall be filed in
the city clerk-treasurer's office and in the county auditor's office on
or before the first Monday in March. Detailed information on the
items must be available for inspection by the public at the hospital
administrator's office.
As added by P.L.2-1993, SEC.6. Amended by P.L.90-2002, SEC.398.
IC 16-23-1-32
Hospital aid taxes; collection and deposit
Sec. 32. (a) The county treasurer shall collect all hospital aid taxes
levied by the county fiscal body or city fiscal body as other taxes on
property are collected, and the county auditor shall pay over the
amount to the clerk-treasurer of the city. The amount shall be placed
in the hospital fund of the city, subject to the order of the governing
board, and is available for the payment of maintenance, equipment,
supplies, and operating expenses of the city hospital and for any
other purpose for which the current budget of the hospital provides.
(b) The clerk-treasurer shall keep the hospital aid money levied by
the county fiscal body or the city fiscal body in separate items on the
appropriation records of the city. The amount received from the
hospital aid levy of the county shall be considered appropriated for
hospital purposes, without further appropriation by the city fiscal
body.
As added by P.L.2-1993, SEC.6.
IC 16-23-1-33
Records, books, papers, and physical property; inspection and
examination
Sec. 33. The business records, books, papers, and physical
property of the hospital shall be kept open at all reasonable times to
the inspection and examination of the following:
(1) The state board of accounts.
(2) The city executive, the city fiscal body, and the board of
public works and safety of the city.
(3) The county legislative body, the county fiscal body, and the
judge of the circuit court of the county.
(4) Any other authorized local or state officer, board, or
commission.
As added by P.L.2-1993, SEC.6.
IC 16-23-1-34
Gifts, donations, bequests, devises, and property in trust;
acceptance and control
Sec. 34. (a) The governing board may accept gifts, donations,
bequests, and devises, and property in trust for the use and benefit of
the hospital. The board shall recommend and the city fiscal body, by
resolution or ordinance, must approve the terms and acceptance of
any trust. If no trust is involved and there is an unconditional gift or
donation to the hospital or to the city for hospital purposes, the board
may accept the gift on behalf of the hospital without referring the gift
to the city fiscal body.
(b) The governing board shall control all trust funds or property
and other donations, gifts, bequests, or devises belonging to the
hospital or made to the city for hospital purposes. The board shall
carry out terms and conditions of a trust involving acts or
proceedings in connection with the hospital.
As added by P.L.2-1993, SEC.6.
IC 16-23-1-35
Facility construction, improvement, and repair by city legislative
bodies
Sec. 35. (a) If the city legislative body of a city having a city
hospital determines that the city hospital's buildings and facilities are
or will soon become insufficient to serve the needs of the residents
of the city and of the county in which the city is located, the city
legislative body may, by ordinance, do any of the following:
(1) Provide for the construction of any of the following:
(A) Buildings at the same or a different location to replace
or supplement the hospital building.
(B) An extension and addition to any hospital building.
(2) Provide for the alteration, improvement, remodeling, or
repair of any hospital building and grounds.
(3) Provide for the acquisition by condemnation, purchase, or
donation of additional real property.
(b) The city fiscal body may, by ordinance, appropriate or borrow
the necessary money and issue bonds of the city. The city fiscal body
shall annually levy a sufficient tax on all taxable property in the city
to pay the principal of the bonds that will mature in the ensuing
calendar year and the interest payments due in the ensuing calendar
year on all outstanding bonds of that issue. The appropriations and
bonds may include the cost of architects' services and any
preliminary proceedings, legal services, and other incidental expense
in connection with the project.
As added by P.L.2-1993, SEC.6.
IC 16-23-1-36
Bonds; terms; security
Sec. 36. (a) The ordinance specified in section 35 of this chapter
shall provide for the following:
(1) The issuance, sale, execution date, and principal of each
bond to be issued.
(2) The number of bonds and the aggregate principal of the
bond issue.
(3) The payment of interest on the bonds annually or
semiannually.
(4) A maturity date that is within twenty-five (25) years from
the date of execution of the bonds.
(5) Any other terms authorized or required by statute.
(b) The city fiscal body also shall pledge the full faith and credit
of the city, with the city's taxable property, to the redemption of the
bonds on the respective maturity dates of the bonds and to the
payment of all interest becoming due on the bonds.
As added by P.L.2-1993, SEC.6.
IC 16-23-1-37
Facility construction, improvement, and repair by governing board
Sec. 37. (a) The governing board may design, order, contract for,
and execute the following:
(1) The construction of other buildings at the same or a
different location to replace or supplement a hospital building.
(2) The construction of an adequate and a proper extension and
addition to a hospital building.
(3) The alteration, improvement, repair, and remodeling of a
hospital building and grounds.
(4) The acquisition by condemnation, purchase, or donation of
additional real property.
(5) The purchasing, construction, remodeling, enlargement, or
acquisition in any lawful manner of a building for a hospital
purpose.
(b) The governing board shall perform duties and exercise powers
authorized by ordinances adopted by the fiscal body of the city or
county for the appropriation of adequate funds or the borrowing of
money by issuance and sale of the bonds of the city or county.
(c) Except as provided in IC 36-1-12-1(c) or in this chapter, the
governing board is governed by all applicable statutes for third class
cities in the making of repairs, construction, improvement, extension,
or addition of or to the hospital, including the acquisition or
condemnation of real property.
As added by P.L.2-1993, SEC.6.
IC 16-23-1-38
Federal funds and grants; county funds
Sec. 38. The city and the governing board may, by the proper
officers, do the following:
(1) Apply for, accept, and receive federal funds or grants
available to aid the hospital project.
(2) Agree to and carry out the terms of the grant.
(3) Execute any necessary applications, contracts, and other
instruments for this purpose.
(4) Accept and receive any funds appropriated and available
from the county under this chapter and use the funds for the
hospital project.
As added by P.L.2-1993, SEC.6.
IC 16-23-1-39
Emergency hospital construction, improvement, and repair; bonds
Sec. 39. (a) This section applies to the county fiscal body of a
county in which a city hospital is located and maintained.
(b) The county fiscal body may issue and sell bonds and
appropriate money, if the fiscal body finds the following:
(1) An emergency exists.
(2) To meet the medical needs of the county residents living
inside and outside the corporate limits of the city it is necessary
to aid in the following:
(A) The construction, improvement, repair, or remodeling of
hospital buildings and grounds.
(B) The construction of an extension or addition to the
hospital.
(C) The acquisition of real property for the hospital.
(3) An appropriation of county funds, borrowing of money, and
issuance and sale of bonds by the county are in the best interests
of all the citizens of the county.
(c) The county fiscal body may issue and sell bonds and
appropriate the proceeds to meet the emergency:
(1) without regard to whether the city in which the hospital is
located has issued and sold bonds for these purposes or
contemplates the issuance and sale of bonds;
(2) as other county bonds are issued and sold under statute; and
(3) subject to approval of the department of local government
finance.
(d) The principal derived from the sale of the bonds, upon due
appropriation by the county according to statute, shall be paid to the
clerk-treasurer of the city to assist in paying the cost of the
improvement, repair, remodeling, or construction project of the
hospital or for the acquisition of real property, without
reappropriation by the fiscal body of the city.
As added by P.L.2-1993, SEC.6. Amended by P.L.90-2002, SEC.399.
IC 16-23-1-40
Cumulative hospital building fund; tax rate; investment
Sec. 40. (a) The governing board may request a cumulative
hospital building fund and a tax rate upon all taxable property in the
county in which the hospital is located to finance the fund. If a
resolution is approved by majority vote of all members at a regular
or special board meeting, the resolution shall be certified to the
county auditor, who shall submit the resolution to the county
executive for preliminary approval and recommendation. Upon the
approval of the county executive, the county auditor shall publish
notice of a public hearing before the county council on the
establishment of a cumulative hospital building fund and tax rate in
each year.
(b) The cumulative building tax rate begins in any calendar year
when all proceedings to establish the tax rate have been completed
before August 2 in that year. The rate is levied on each one hundred
dollars ($100) of taxable property for that year, payable in the next
year, and continues each year for a term not exceeding twelve (12)
years. The resolution of the board must specify the following:
(1) The number of years.
(2) The effective date when the tax levy begins.
(3) The amount of rate on each one hundred dollars ($100) of
taxable property.
(4) Any other pertinent facts considered advisable by the board.
(c) Except as provided in subsections (f) through (h), the rate on
each one hundred dollars ($100) may be reduced but not increased
by the department of local government finance in approving a
cumulative building tax rate. The rate as finally fixed by the
department of local government finance is final. However, the county
fiscal body, by three-fourths (3/4) affirmative vote of the county
fiscal body's members, may reduce the rate in any given year or years
to meet an emergency existing in the county, but the temporary
reduction affects the rate only in the year when the action is taken.
The rate is automatically restored to the rate's original amount in
each succeeding year of the established period except in any other
year when another emergency reduction is made. The rate is subject
to review each year by the county fiscal body, but the county tax
adjustment board and department of local government finance may
not reduce the rate below the original rate established and approved
by vote of the county fiscal body unless the county fiscal body
reduces the rate.
(d) The county fiscal body, city fiscal body, county tax adjustment
board, or department of local government finance does not have
power or jurisdiction over the annual budget and appropriations,
additional appropriations, or transfer of money unless the action
involves the expenditure or raising of money derived from property
taxes. If the cumulative building fund is the only hospital fund raised
by taxation, section 31 of this chapter controls.
(e) The cumulative building fund raised may be properly and
safely invested or reinvested by the board to produce an income until
there is an immediate need for the fund's use. The fund and any
income derived from investment or reinvestment of the fund may be
used as follows:
(1) To purchase real property and grounds for hospital
purposes.
(2) To remodel or make major repairs on any hospital building.
(3) To erect and construct hospital buildings or additions or
extensions to the buildings.
(4) For any other major capital improvements, but not for
current operating expenses or to meet a deficiency in operating
funds.
(f) Not later than August 1 of any year, ten (10) or more taxpayers
in the county may file with the county auditor of the county in which
the hospital is located a petition for reduction or rescission of the
cumulative building tax rate. The petition must set forth the
taxpayers' objections to the tax rate. The petition shall be certified to
the department of local government finance.
(g) Upon receipt of a petition under subsection (f), the department
of local government finance shall, within a reasonable time, fix a
date for a hearing on the petition. The hearing must be held in the
county in which the hospital is located. Notice of the hearing shall be
given to the county fiscal body and to the first ten (10) taxpayers
whose names appear on the petition. The notice must be in the form
of a letter signed by the secretary or any member of the department
of local government finance, sent by mail with full prepaid postage
to the county fiscal body and to the taxpayers at their usual places of
residence at least five (5) days before the date fixed for the hearing.
(h) After the hearing under subsection (g), the department of local
government finance shall approve, disapprove, or modify the request
for reduction or rescission of the tax rate and shall certify that
decision to the county auditor of the county in which the hospital is
located.
As added by P.L.2-1993, SEC.6. Amended by P.L.41-1993, SEC.32;
P.L.90-2002, SEC.400.
IC 16-23-1-41
Claims against hospitals
Sec. 41. All claims against the hospital for money payable for
services provided, items furnished, or expenses incurred at or for the
hospital shall be considered and allowed or disallowed, in whole or
in part, as the board of directors considers proper. The allowance or
disallowance shall be certified or attested by the secretary, president,
or other member authorized by the board to endorse the action taken
on claims. The claims shall then be filed in the clerk-treasurer's
office of the city. If the claims are covered by proper appropriations
in effect and unexpended and are in due form, or if no appropriation
is required by statute and the claims are filed and allowed according
to statute, the clerk-treasurer shall promptly pay the claims out of the
hospital funds of the city to the individual, firm, corporation, or other
legal entity to whom the claims are due.
As added by P.L.2-1993, SEC.6.
IC 16-23-1-42
Maintenance and operation of properties
Sec. 42. All property constructed, purchased, improved, repaired,
remodeled, or acquired by the city or by the board of directors and
used for hospital purposes shall be maintained and operated as and
for a city hospital under the control of the board of directors, with
equal representation on the board to the residents of the city and to
the citizens of the county residing outside the city and with equal
rights, facilities, service, and treatment available to citizens of the
county residing inside and outside the corporate limits of the city.
As added by P.L.2-1993, SEC.6.
IC 16-23-1-43
City classification changes; effect
Sec. 43. If a city to which this chapter applies becomes a city of
a different class, the hospital may continue to be maintained,
operated, improved, remodeled, and enlarged, and real property
acquired, as provided in this chapter as if the classification had not
changed.
As added by P.L.2-1993, SEC.6.
IC 16-23-1-44
Joint hospital operation
Sec. 44. A city hospital operating under this chapter may operate
jointly with a county hospital in the same county created under
IC 16-22-13. Joint operation may include joint employment of an
administrator and other personnel, joint policies, joint purchases,
joint services, and other programs to reduce the costs of health care.
The board of directors of the city hospital may contract with the
hospital board of the county hospital to provide for the manner of
allocation of revenues and expenditures and the administration of the
hospitals. Records must reflect the separate ownership, financial
obligations, and existence of the city hospital and the county
hospital.
As added by P.L.2-1993, SEC.6.
IC 16-23-1-45
Governing board; rights and powers; sale and lease of real
property
Sec. 45. (a) The governing board has the same rights and powers
as the hospital board of a county hospital under IC 16-22-2, except
when those rights and powers are in conflict with the rights and
powers granted to a city hospital under this chapter. However, a city
hospital and the hospital's board of directors do not have authority to
act inconsistently with the nature of the city hospital as a body of city
government.
(b) The governing board may sell or lease real property to others
by taking the same steps and procedures that the city served by the
city hospital is required to take to sell or lease real property, except
to the extent that this subsection conflicts with another statute
authorizing the sale or lease of real property.
As added by P.L.2-1993, SEC.6.
IC 16-23-1-46
Sale of real property; trust bids; lease of real and personal
property; loans
Sec. 46. (a) This section applies to the sale of real property by the
governing board.
(b) If real property is sold by acceptance of bids, a bid submitted
for the property by a trust (as defined in IC 30-4-1-1(a)) must
identify the following:
(1) Each beneficiary of the trust.
(2) Each settlor empowered to revoke or modify the trust.
(c) The governing board may lease from others real or personal
property, with or without an option to purchase, on terms and
conditions and for times the board of directors considers reasonable.
(d) The governing board may borrow money and may secure the
loan by a pledge of amounts from the cumulative building fund or
other security. The loan may be made for a term of up to twenty (20)
years.
As added by P.L.2-1993, SEC.6.
IC 16-23-1-47
Board of directors; authority and powers; direct financial subsidies
Sec. 47. (a) The board of directors has the authority and powers
granted to boards of nonprofit corporations under IC 23-17, including
the powers to do the following:
(1) Enter shared service agreements and other cooperative
ventures.
(2) Join or sponsor memberships in organizations and
associations that benefit the hospital.
(3) Incorporate other corporations.
(4) Allow members of the board or officers or administrators of
the hospital to serve as directors of the following:
(A) Organizations or associations that benefit the hospital.
(B) Partnerships, limited liability companies, or other
corporations.
(C) Shared service agreements and other cooperative
ventures.
(5) Offer to the general public, directly or indirectly, products
and services of any entity created under this subsection.
(6) Sue and be sued in the board's own name.
(7) Enter into contracts.
(8) Perform all other duties and exercise all other powers
prescribed by law.
(b) The existence of authority or power under subsection (a) shall
be determined in favor of the hospital if generally authorized or
existing under IC 23-17. A resolution of the board of directors is
presumptive evidence of a power.
(c) If a county or city fiscal body provides a direct financial
subsidy to a hospital from a tax levy at the time a hospital exercises
the hospital's powers under subsection (a), the hospital may not
provide the funds from a tax levy to an entity created under
subsection (a) for more than three (3) years. After three (3) years, all
money, with interest, must be repaid in not more than ten (10) years.
As added by P.L.2-1993, SEC.6. Amended by P.L.8-1993, SEC.251.