23-50.16 - Operations of Medical Center.
§ 23-50.16. Operations of Medical Center.
A. In enacting this section, the General Assembly recognizes that the abilityof Virginia Commonwealth University to provide medical and health scienceseducation and related research is dependent upon the maintenance ofhigh-quality teaching hospitals and related health care and healthmaintenance facilities, collectively referred to in this section as theMedical Center, and that the maintenance of a medical center serving suchpurposes requires specialized management and operation that permit theMedical Center to remain economically viable and to participate incooperative arrangements reflective of changes in health care delivery.
B. Without limiting the powers provided in §§ 23-50.8 and 23-50.10, VirginiaCommonwealth University may create, own in whole or in part or otherwisecontrol corporations, partnerships, insurers or other entities whoseactivities will promote the operations of the Medical Center and its mission,may cooperate or enter into joint ventures with such entities and governmentbodies and may enter into contracts in connection therewith. Without limitingthe power of Virginia Commonwealth University to issue bonds, notes,guarantees, or other evidence of indebtedness under subsection C inconnection with such activities, no such creation, ownership or control shallcreate any responsibility of the University, the Commonwealth or any otheragency thereof for the operations or obligations of any entity or in any waymake the University, the Commonwealth, or any other agency thereofresponsible for the payment of debt or other obligations of such entity. Allsuch interests shall be reflected on the financial statements of the MedicalCenter.
C. Notwithstanding the provisions of Chapter 3 (§ 23-14 et seq.) of thistitle, Virginia Commonwealth University may issue bonds, notes, guarantees,or other evidence of indebtedness without the approval of any othergovernmental body subject to the following provisions:
1. Such debt is used solely for the purpose of paying not more than fiftypercent of the cost of capital improvements in connection with the operationof the Medical Center or related issuance costs, reserve funds, and otherfinancing expenses, including interest during construction or acquisition andfor up to one year thereafter;
2. The only revenues of the University pledged to the payment of such debtare those derived from the operation of the Medical Center and related healthcare and educational activities, and there are pledged therefor no generalfund appropriation and special Medicaid disproportionate share payments forindigent and medically indigent patients who are not eligible for theVirginia Medicaid Program;
3. Such debt states that it does not constitute a debt of the Commonwealth ora pledge of the faith and credit of the Commonwealth;
4. Such debt is not sold to the public;
5. The total principal amount of such debt outstanding at any one time doesnot exceed twenty-five million dollars;
6. The Treasury Board has approved the terms and structure of such debt;
7. The purpose, terms, and structure of such debt are promptly communicatedto the Governor and the Chairmen of the House Appropriations and SenateFinance Committees; and
8. All such indebtedness is reflected on the financial statements of theMedical Center.
Subject to meeting the conditions set forth above, such debt may be in suchform and have such terms as the board of visitors may provide and shall be inall respects debt of the University for the purposes of §§ 23-23, 23-25, and23-26.
(1994, c. 621.)