37615.1
. Each local municipal hospital shall have and may exercise
the following powers:
(a) To purchase, receive, have, take, hold, lease, use, and enjoy
property of every kind and description within and without the limits
of the municipality, and to control, dispose of, convey, and encumber
the same and create a leasehold interest in the same for the benefit
of the hospital.
(b) To establish one or more trusts for the benefit of the
municipal hospital, to administer any trusts declared or created for
the benefit of the municipal hospital, to designate one or more
trustees for trusts created by the municipality, to receive by gift,
devise, or bequest, and hold in trust or otherwise, property,
including corporate securities of all kinds, situated in this state
or elsewhere, and where not otherwise provided, dispose of the same
for the benefit of the municipal hospital.
(c) To employ any officers and employees, including architects and
consultants, the board of trustees deems necessary to carry on
properly the business of the municipal hospital.
(d) To do any and all things which an individual might do which
are necessary for, and to the advantage of, a hospital and a nurses'
training school, or a child-care facility for the benefit of
employees of the hospital or residents of the municipality.
(e) To establish, maintain and operate, or provide assistance in
the operation of, one or more health facilities or health services,
including, but not limited to, outpatient programs, services and
facilities, retirement programs, services and facilities, chemical
dependency programs, services and facilities, or other health care
programs, services and facilities and activities at any location
within or without the municipality for the benefit of the hospital
and the people served by the municipal hospital.
"Health facilities," as used in this subdivision, means those
facilities defined in either Section 15432 of this code or Section
1250 of the Health and Safety Code and specifically includes
freestanding chemical dependency recovery units.
(f) To do any and all other acts and things necessary to carry out
this division.
(g) To acquire, maintain, and operate ambulances or ambulance
services within and without the municipality.
(h) To establish, maintain, and operate, or provide assistance in
the operation of, free clinics, diagnostic and testing centers,
health education programs, wellness and prevention programs,
rehabilitation, aftercare, and any other health care services
provider, groups, and organizations which are necessary for the
maintenance of good physical and mental health in the communities
served by the municipal hospital.
(i) To establish and operate in cooperation with its medical staff
a coinsurance plan between the municipal hospital and the members of
its attending medical staff.
(j) With the approval of the city council, to establish, maintain,
and carry on its activities through one or more corporations, joint
ventures, or partnerships for the benefit of the municipal hospital.
(k) With the consent of the city council, to contract for bond
insurance, letters of credit, remarketing services, and other forms
of credit enhancement and liquidity support for its bonds, notes, and
other indebtedness and to enter into reimbursement agreements,
monitoring agreements, remarketing agreements, and similar ancillary
contracts in connection therewith.
(l) To establish, maintain, operate, participate in, or manage
capitated health care plans, health maintenance organizations,
preferred provider organizations, and other managed health care
systems and programs properly licensed by the Department of Insurance
or the Department of Managed Health Care, at any location within or
without the municipality for the benefit of residents of communities
served by the hospital. However, no such activity shall be deemed to
result in or constitute the giving or lending of the municipality's
credit, assets, surpluses, cash, or tangible goods to, or in aid of,
any person, association, or corporation in violation of Section 6 of
Article XVI of the California Constitution.
Nothing in this section shall authorize activities which
corporations and other artificial legal entities are prohibited from
conducting by Section 2400 of the Business and Professions Code.
Any agreement to provide health care coverage which is a health
care service plan, as defined in subdivision (f) of Section 1345 of
the Health and Safety Code, shall be subject to the provisions of
Chapter 2.2 (commencing with Section 1340) of Division 2 of the
Health and Safety Code, unless exempted pursuant to Section 1343 or
1349.2 of the Health and Safety Code.
A municipal hospital shall not provide health care coverage for
any employee of an employer operating within the service area of the
municipal hospital, unless the Legislature specifically authorizes,
or has authorized the coverage.
This section shall not authorize any municipal hospital to
contribute its facilities to any joint venture that could result in
transfer of the facilities from city ownership.
(m) To provide health care coverage to members of the hospital's
medical staff, employees of the medical staff members, and the
dependents of both groups, on a self-pay basis.
(n) With the consent of the city council, to establish, maintain,
and carry on its activities through one or more corporations, joint
ventures, or partnerships for the benefit of the municipal hospital.
(o) With the consent of the city council, to transfer, with or
without consideration, any part of its assets to one or more
nonprofit corporations to operate and maintain the assets for the
benefits of the area served by the hospital. The initial members of
the board of directors of the nonprofit corporation or corporations
shall be approved by the city council and shall be residents of the
city.
(p) Nothing in this section, including, but not limited to,
subdivision (e), shall be construed to permit a municipal hospital to
operate or be issued a single consolidated license to operate a
separate physical plant as a skilled nursing facility or an
intermediate care facility which is not located within the boundaries
of the municipality.