TITLE 39

HEALTH AND SAFETY

CHAPTER 13

HOSPITAL LICENSES AND INSPECTION

39-1359.  CONVEYANCE OF HOSPITAL DISTRICT property TO NONPROFIT CORPORATION. (1) As an alternative to the procedure set forth in section 39-1358, Idaho Code, the board of trustees of a hospital district may convey or lease hospital district real property, facilities, and the personal property and equipment therein subject to the following conditions:

(a)  The conveyance or lease shall be to a nonprofit corporation;

(b)  No lease term shall exceed ninety-nine (99) years;

(c)  The governing body of the nonprofit corporation must be composed initially of the incumbent trustees of the hospital district board of trustees as individuals;

(d)  The articles of incorporation must provide for a membership of the corporation that is:

(i)   Broadly representative of the public it serves; or

(ii)  A single nonprofit corporate member having articles of incorporation that provide for a membership of the corporation that is broadly representative of the public it serves. The articles must further provide for the selection of the governing body by the membership of the corporation or exclusively by a parent corporation that is a corporate member, with voting power, and not by the governing body itself, except to fill a vacancy for an unexpired term. The articles must further provide that no member of the governing body shall serve more than two (2) consecutive three (3) year terms;

(e)  The nonprofit corporation must provide care for indigent patients and receive any person falling sick or maimed within the hospital district;

(f)  The conveyance or lease agreement must provide for the transfer of patients, staff, and employees and for the continuing administration of any trusts or bequests or maintenance of records pertaining to the existing hospital district; and

(g)  The conveyance or lease agreement shall provide for a price that is either of the following:

(i)   The acceptance of all assets and assumption of all liabilities; or

(ii)  Such other price to which the hospital district board of trustees and the nonprofit corporation agree.

(2)  If any hospital that has been conveyed pursuant to this section ceases to be used as a nonprofit hospital, then the hospital so conveyed shall revert to the ownership of the hospital district, unless the premises so conveyed are sold and the proceeds used to erect or enlarge another nonprofit hospital. If any hospital that has been leased pursuant to this section ceases to be used as a nonprofit hospital, then the lease shall terminate.

History:

[39-1359, added 2022, ch. 180, sec. 2, p. 584.]