Section 32121.4 Of Article 2. Powers From California Health And Safety Code >> Division 23. >> Chapter 2. >> Article 2.
32121.4
. Notwithstanding any other provision of law, a hospital
district or any affiliated nonprofit corporation, upon a finding by
the board of directors of the district that it will be in the best
interests of the district to provide additional diversification of
facilities, may lease and operate the realty, facilities, and
business of another hospital district in California, or create a
leasehold interest in its own realty, improvements, and business in
favor of another hospital district, if all of the following apply:
(a) That the lease when taken together with any extensions of the
lease shall not exceed a total of 30 years.
(b) That the lessee district shall not finance any capital
improvements through the use of the lessor district's credit.
(c) That the lessor district shall have successfully completed any
feasibility studies required by its board of directors as will
reasonably ensure that the lessor hospital's financial stability will
not be endangered by the lease transaction.
(d) Nothing in this section shall be construed to impair or limit
the authority of the California Medical Assistance Commission to
contract for the provision of inpatient hospital services under the
Medi-Cal program with local hospital district hospitals as sole
distinct entities, even though one or more hospital districts may
have entered into leasehold or joint-venture arrangements.
Any lease made pursuant to this section to one or more nonprofit
corporations affiliated with a district, that is part of or
contingent upon a transfer of 50 percent or more of the district's
assets, in sum or by increment, to the affiliated nonprofit
corporation shall be subject to the requirements of subdivision (p)
of Section 32121.