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S. B. No. 2570 *SS26/R136CS* ~ OFFICIAL ~ G3/5
26/SS26/R136CS
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To: Public Health and
Welfare
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026
By: Senator(s) Hopson
COMMITTEE SUBSTITUTE
FOR
SENATE BILL NO. 2570
AN ACT TO PROHIBIT THE DIVISION OF MEDICAID FROM COLLECTING 1
OR TAKING ANY STEPS TO COLLECT MONIES OWED DUE TO OVERPAYMENTS 2
RECEIVED DURING THE 2024 FISCAL YEAR FROM A HOSPITAL IN GREENWOOD 3
UNTIL AFTER MAY 1, 2026, IN ORDER TO ENSURE THAT ACCESS TO 4
CRITICAL HEALTH CARE SERVICES WILL NOT BE ERODED OR ELIMINATED FOR 5
CENTRAL AND EASTERN REGIONS OF THE MISSISSIPPI DELTA; TO CREATE 6
THE MISSISSIPPI RURAL REGIONAL HEALTH AUTHORITIES ACT OF 2026; TO 7
DECLARE THE LEGISLATIVE INTENT REGARDING THE PURPOSE OF REGIONAL 8
HEALTH AUTHORITIES; TO CREATE THE DELTA REGIONAL HEALTH AUTHORITY; 9
TO PROVIDE FOR THE APPOINTMENT OF THE GOVERNING BOARD OF SUCH 10
AUTHORITY; TO PROVIDE FOR PARTICIPATION AGREEMENTS BETWEEN THE 11
REGIONAL HEALTH AUTHORITY AND THE OWNERS OF COMMUNITY HOSPITALS 12
FOR THE HOSPITALS TO PARTICIPATE IN THE REGIONAL HEALTH AUTHORITY; 13
TO PROVIDE THAT PARTICIPATING COMMUNITY HOSPITALS WILL NO LONGER 14
BE GOVERNED BY THE COMMUNITY HOSPITAL LAWS BUT WILL BE GOVERNED BY 15
THE AUTHORITY BOARD; TO PROVIDE THAT THE AUTHORITY BOARD MAY 16
APPOINT A CHIEF EXECUTIVE OFFICER OF THE AUTHORITY; TO SPECIFY THE 17
POWERS AND DUTIES OF THE CHIEF EXECUTIVE OFFICER; TO PROVIDE THAT 18
THE AUTHORITY BOARD SHALL HAVE ALL OF THE POWERS, AUTHORITY, 19
RIGHTS, PRIVILEGES AND IMMUNITIES CONFERRED ON THE OWNERS AND THE 20
BOARDS OF TRUSTEES OF COMMUNITY HOSPITALS; TO PRESCRIBE ADDITIONAL 21
POWERS AND DUTIES OF THE REGIONAL HEALTH AUTHORITY; TO PROVIDE 22
THAT THE AUTHORITY SHALL BE DEEMED A "GOVERNMENTAL ENTITY" AND 23
"POLITICAL SUBDIVISION" FOR THE PURPOSE OF THE TORT CLAIMS ACT; TO 24
AUTHORIZE THE AUTHORITY TO PARTICIPATE IN THE PUBLIC EMPLOYEES' 25
RETIREMENT SYSTEM AS A POLITICAL SUBDIVISION; TO PROVIDE THAT THE 26
REGIONAL HEALTH AUTHORITY SHALL BE TREATED AS A NONSTATE 27
GOVERNMENTAL HOSPITAL AND SHALL HAVE ALL RIGHTS, PRIVILEGES AND 28
ENTITLEMENTS OF A NONSTATE GOVERNMENTAL HOSPITAL FOR PURPOSES OF 29
THE MISSISSIPPI MEDICAID PROGRAM; TO DIRECT THE DIVISION OF 30
MEDICAID TO CREATE AND IMPLEMENT A SUPPLEMENTAL PAYMENT PROGRAM TO 31
SUPPORT THE ESSENTIAL SERVICES AND OPERATIONS OF THE DELTA 32
REGIONAL HEALTH AUTHORITY; TO PROVIDE THAT ANY CONSOLIDATION OR 33
COLLABORATION INVOLVING A REGIONAL HEALTH AUTHORITY AND OTHER 34
S. B. No. 2570 *SS26/R136CS* ~ OFFICIAL ~
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ST: Delta Regional Health Authority; create &
prohibit DOM from collecting monies owed from a
Greenwood hospital until after May 1, 2026.
PUBLIC, PRIVATE OR NONPROFIT HOSPITALS, HEALTH CARE FACILITIES OR 35
PROVIDERS SHALL BE IMMUNE FROM LIABILITY UNDER THE FEDERAL AND 36
STATE ANTITRUST OR COMPETITION LAWS TO THE FULLEST EXTENT ALLOWED 37
BY LAW; TO AMEND SECTIONS 11-46-1, 41-7-173, 41-13-11, 41-13-15, 38
41-13-19, 41-13-35, 41-13-47 AND 41-13-101, MISSISSIPPI CODE OF 39
1972, TO CONFORM TO THE PRECEDING PROVISIONS; AND FOR RELATED 40
PURPOSES. 41
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 42
SECTION 1. In order to ensure that access to critical health 43
care services will not be eroded or eliminated for residents and 44
nonresidents within the central and eastern regions of the 45
Mississippi Delta, the Division of Medicaid shall not collect or 46
take any steps to collect monies owed due to overpayments received 47
during the 2024 fiscal year from a hospital in Greenwood until 48
after May 1, 2026. 49
SECTION 2. Short title. Sections 2 through 20 of this act 50
shall be known and may be cited as the "Mississippi Rural Regional 51
Health Authority Act of 2026." 52
SECTION 3. Legislative intent and general purposes. The 53
Legislature finds and declares as follows: 54
(a) The health care needs of the residents of 55
Mississippi can be served by regional health authorities having 56
the legal, financial and operational flexibility to take full 57
advantage of opportunities and challenges presented by the 58
evolving health care environment and to take whatever actions are 59
necessary to enable the authority's continuation as a system that 60
provides the finest possible quality of care consistent with 61
reasonable costs. 62
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(b) In this environment, a regional health authority 63
must have the ability to respond to changing conditions by having 64
the power to develop efficient and cost-effective methods and 65
structures to provide for health care needs, while maintaining a 66
public mission and character. Accordingly, the Legislature finds 67
that there is a compelling interest in establishing a structure 68
and process for community hospitals to become part of and 69
participate in a regional health authority, in order to be able to 70
adapt to this dynamic environment, to operate efficiently, to 71
offer competitive health care services, to respond more 72
effectively to new developments and regulatory changes in the 73
health care area, and to continue to serve and promote the health, 74
wellness and welfare of the citizens of Mississippi. The general 75
purpose of Sections 2 through 20 of this act is to achieve these 76
objectives and promote the public health and welfare of the 77
residents of Mississippi by allowing a community hospital to 78
participate in a regional health authority and to operate as 79
provided in Sections 2 through 20 of this act. The regional 80
health authority established under Sections 2 through 20 of this 81
act shall be a public and governmental body, and a political 82
subdivision of the state. The operation of the regional health 83
authority is declared to be for a public and governmental purpose 84
and a matter of public necessity. 85
(c) The geographic areas to be served by the regional 86
health authority include rural populations and other groups that 87
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experience significant health disparities. Health disparities are 88
differences in health status when compared to the population 89
overall, often characterized by indicators such as higher 90
incidence of disease and/or disability, increased mortality rates 91
and lower life expectancies. Rural risk factors for health 92
disparities include geographic isolation, lower socioeconomic 93
status, higher rates of health risk behaviors and limited access 94
to health care specialists and subspecialists. As a result of 95
these health disparities, the residents of the area to be served 96
by the regional health authority have high rates of mortality and 97
morbidity, heart disease, cancer and other illnesses. The region 98
also includes a high percentage of uninsured individuals and 99
Medicaid patients, which are medically underserved groups. 100
Community hospitals that currently serve this area have 101
demonstrated their ability to provide high-quality health care and 102
to improve health conditions and outcomes as well as access to 103
care. The participation of community hospitals in a regional 104
health authority will significantly strengthen their ability to 105
serve the health care needs of the residents of the region. 106
(d) The regional health authority's investment of 107
significant public assets and its efforts to provide high-quality 108
health care services to medically underserved populations are 109
jeopardized by the authority's potential limits on its ability to 110
collaborate and consolidate with other public and private health 111
care facilities and providers. The Legislature expressly finds 112
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that the benefits of collaboration and consolidation by the 113
regional health authority outweigh any adverse impact on 114
competition. The benefits of the regional health authority's 115
efforts to collaborate and consolidate include, but are not 116
limited to, preserving and expanding needed health care services 117
in its service area; consolidating unneeded or duplicative health 118
care services; enhancing the quality of, and expanding access to, 119
health care delivered to medically underserved and rural 120
populations; and lowering costs and improving the efficiency of 121
the health care services it delivers. Based on the findings 122
contained in this section, the Legislature affirmatively expresses 123
a policy to allow the regional health authority to consolidate 124
with, or facilitate the consolidation among, other public, 125
private, for-profit and nonprofit hospitals, health care 126
facilities and providers, and to engage in collaborative 127
activities consistent with their health care purposes, 128
notwithstanding that those consolidations and collaborations may 129
have the effect of displacing competition in the provision of 130
hospital or other health care-related services. In engaging in 131
such consolidations and collaborations with other public, private, 132
for-profit or nonprofit hospitals, health care facilities and 133
providers, the regional health authority shall be considered to be 134
acting pursuant to clearly articulated state policy as established 135
in this section and shall not be subject to federal or state 136
antitrust laws while so acting. With respect to the 137
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consolidations, collaborative activities and other activities 138
contemplated in this section, the regional health authority and 139
the public, private, for-profit and nonprofit entities with which 140
it consolidates, collaborates or enters into any of the 141
transactions set forth in Sections 2 through 20 of this act, shall 142
be immune from liability under the federal and state antitrust 143
laws and those activities are provided with state action immunity 144
from federal and state antitrust laws to the fullest extent 145
possible. 146
(e) The goals and objectives of the regional health 147
authority include, but are not limited to: 148
(i) Maintaining essential health services; 149
(ii) Retaining an essential workforce; 150
(iii) Attaining financial sustainability; 151
(iv) Maximizing public reimbursement 152
opportunities; 153
(v) Enhancing outpatient health services; 154
(vi) Achieving economies of scale and skill; and 155
(vii) Identifying skilled and resourceful 156
affiliation partners. 157
(f) It is the intent of the Legislature that Sections 2 158
through 20 of this act be construed broadly so as to give effect 159
to the intent, purposes and findings described in this section. 160
SECTION 4. Definitions. As used in Sections 2 through 20 of 161
this act, the following words and phrases have the meanings as 162
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defined in this section unless the context clearly indicates 163
otherwise: 164
(a) "Authority" or "regional health authority" means a 165
public body established in accordance with this act for the 166
purposes and with the powers set forth in this act, and includes, 167
but is not limited to, the Delta Regional Health Authority. 168
(b) "Authority board" means the governing board of a 169
regional health authority, including the organizational board of 170
the authority and/or the operational board of the authority. 171
(c) "Community hospital" has the meaning as defined in 172
Section 41-13-10(c). 173
(d) "Community hospital board" or "board of trustees" 174
means the board of trustees of a community hospital. 175
(e) "Health care facility" means and includes 176
hospitals, psychiatric hospitals, chemical dependency hospitals, 177
skilled nursing facilities, end-stage renal disease facilities, 178
ambulatory surgical facilities, home health agencies, 179
comprehensive medical rehabilitation facilities, and all other 180
facilities and programs established or operated for the provision 181
or offering of health care services and related services. 182
(f) "Mississippi Delta" means and includes the 183
following Mississippi counties: Bolivar, Carroll, Coahoma, 184
Grenada, Holmes, Humphreys, Leflore, Panola, Quitman, Sharkey, 185
Issaquena, Sunflower, Tallahatchie, Tate, Tunica, Warren, 186
Washington and Yazoo. 187
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(g) "Owner" has the meaning as defined in Section 188
41-13-10(d). 189
(h) "Participation agreement" means the 190
intergovernmental participation agreement between the authority 191
board and the owner of a community hospital participating in the 192
authority. 193
SECTION 5. Establishment of regional health authorities. 194
There is created the Delta Regional Health Authority, which shall 195
be established and operated as a regional health authority as set 196
forth in Sections 2 through 20 of this act. The Legislature finds 197
and declares that there is a critical and immediate need for the 198
establishment of a regional health authority in the Mississippi 199
Delta in order to address the health care needs of that region. 200
All provisions of Sections 2 through 20 of this act that refer or 201
apply to a regional health authority shall apply to the Delta 202
Regional Health Authority. 203
SECTION 6. Authority board. (1) The organizational board 204
of the Delta Regional Health Authority shall consist of three (3) 205
members appointed by the Governor and two (2) members appointed by 206
the Lieutenant Governor, with the advice and consent of the 207
Senate. At least two (2) of the members appointed by the Governor 208
must be adult legal residents of the Mississippi Delta. At least 209
one (1) of the members appointed by the Lieutenant Governor must 210
be adult legal residents of the Mississippi Delta. All appointed 211
members must be adult legal residents of the State of Mississippi 212
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and must have significant, demonstrated experience in business 213
management, fiscal affairs or public health. 214
(2) Appointments to the authority board shall reflect the 215
racial and ethnic diversity of such region. The members of the 216
organizational board of the authority shall be responsible for the 217
formation, organization and implementation of the regional health 218
authority and shall serve until such time as one or more community 219
hospitals have entered into participation agreements as provided 220
for in Section 7 of this act. 221
(3) Once the authority has entered into its participation 222
agreement, the authority organizational board shall become an 223
operational board. The operational board shall consist of the 224
organizational board appointed by the Governor and Lieutenant 225
Governor and no more than six (6) additional members, as provided 226
in the participation agreement. A majority of the members of the 227
operational board of the Delta Regional Health Authority shall be 228
adult legal residents of the Mississippi Delta. The remaining 229
members shall be at-large adult legal residents of Mississippi. 230
Future members of the board of the Delta Regional Health Authority 231
shall be appointed as provided in the participation agreements. 232
(4) The members of the authority board set forth in the 233
participation agreement shall serve for staggered terms, and with 234
no member serving a term longer than four (4) years; however, any 235
member of the authority board may be reappointed to serve for two 236
(2) additional consecutive terms. After the expiration of the 237
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initial staggered terms, all succeeding terms shall be for four 238
(4) years from the expiration date of the previous term. Any 239
vacancy on the authority board shall be filled by the authority 240
board within ninety (90) days of the vacancy for the remainder of 241
the unexpired term. 242
(5) All members of the authority board shall serve without 243
pay except for their actual travel expenses and other necessary 244
expenses incurred in the performance of their official duties, to 245
be reimbursed as in the case of state employees under the 246
provisions of Section 25-3-41. 247
(6) All meetings of the authority board shall be subject to 248
the Open Meetings Act in Section 25-41-1 et seq. The chief 249
executive officer or a majority of members of the authority board 250
may convene the board for a meeting. 251
(7) Except as may be otherwise provided by law, all records 252
of the authority board shall be deemed public records and subject 253
to public inspection as provided by Section 25-61-1 et seq. 254
SECTION 7. Intergovernmental participation agreement. (1) 255
The Delta Regional Health Authority may enter into a participation 256
agreement with the owner of one or more community hospitals that 257
will establish the key elements of the relationships among the 258
authority, the owner and the board of trustees of a community 259
hospital, including, but not limited to: 260
(a) The powers and duties delegated to the board of 261
trustees of the community hospital by the authority board, which 262
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shall include, but not be limited to, the responsibility for 263
medical staff credentialing and appointments, and oversight of the 264
quality of health care services provided by the community 265
hospital; 266
(b) The term of office of the members of the board of 267
trustees; 268
(c) The names and addresses of the initial members of 269
the board of trustees; 270
(d) The grounds for the removal or replacement of a 271
member of the board of trustees by the authority board; 272
(e) Governance of the authority and the community 273
hospital; 274
(f) Covenants for essential health services; 275
(g) Any lease or conveyance of real estate, equipment 276
and other assets; 277
(h) Any assumption of existing indebtedness or 278
contracts; 279
(i) Employee commitments, including continued 280
employment and benefit; and 281
(j) All other matters relating to the relationships 282
among the authority board, the owner and the board of trustees. 283
(2) The participation agreement will include, as parties, 284
the authority board, the governing board of the owner of the 285
community hospital participating in the authority, and the board 286
of trustees of the community hospital. 287
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SECTION 8. Participating community hospitals and boards of 288
trustees. All community hospitals that become participants in the 289
regional health authority shall be governed by Sections 2 through 290
20 of this act, and shall no longer be governed by or subject to 291
Sections 41-13-10 through 41-13-53 or Sections 41-13-101 through 292
41-13-107, except as amended by or otherwise provided in Sections 293
2 through 20 of this act. Additionally, all community hospitals 294
that become participants in the regional health authority shall be 295
governed by the authority board, and the boards of trustees of the 296
community hospital participants shall have such powers as are 297
expressly delegated to the community hospital board by the 298
authority board. The initial members of the board of trustees of 299
a community hospital participating in the regional health 300
authority shall consist of five (5) members, who shall be 301
designated in the participation agreement between the authority 302
and the owner of the community hospital. Following the 303
appointment of the initial members of the board of trustees, as 304
designated in the participation agreement, all subsequent members 305
of the board of trustees shall be appointed by the authority 306
board. 307
SECTION 9. Community hospital licenses, permits, regulatory 308
rights and assets. Each community hospital participating in a 309
regional health authority shall retain and maintain its existing 310
licenses, permits, Medicare and Medicaid provider numbers, tax 311
identification numbers and all other regulatory rights and 312
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interests. The participation of a community hospital in a 313
regional health authority shall not constitute a "change of 314
ownership" under Section 41-7-171 et seq. (the Mississippi 315
Certificate of Need Law of 1979) or Section 43-13-101 et seq. (the 316
Mississippi Medicaid Law), or any implementing regulations under 317
those sections. 318
SECTION 10. Appointment and powers of authority chief 319
executive officer. (1) The authority board may appoint a chief 320
executive officer of the authority, who shall be an employee of 321
the authority and serve at the pleasure of the authority board. 322
The authority board may enter into a contract of employment with a 323
chief executive officer for a term not to exceed five (5) years, 324
but which may be renewed for an additional term or terms of five 325
(5) years each; however, the contract of employment may be 326
terminated by the authority board at any time, with or without 327
cause. 328
(2) Subject to any conflicting bylaws, resolutions, rules or 329
regulations adopted by the authority board, the chief executive 330
officer's duties and powers shall include, but not be limited to, 331
the following: 332
(a) To employ and discharge employees as needed for the 333
efficient performance of the business of the authority and to 334
prescribe their duties; 335
(b) To supervise and control the records, accounts, 336
buildings and property of the authority and all internal affairs, 337
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and maintain discipline therein, and enforce compliance with and 338
obedience to all rules, bylaws and regulations adopted by the 339
authority board for the government, discipline and management of 340
the authority and its employees and staff; 341
(c) To attend meetings of the authority board and to 342
keep its members advised of authority business; 343
(d) To appoint the administrators of the community 344
hospitals participating in the authority; and 345
(e) To exercise any of the powers of the authority 346
board that have been delegated, by resolution or through authority 347
board bylaws, to the chief executive officer. 348
SECTION 11. Certain powers and authority of owners and 349
boards of trustees of community hospitals granted to board of 350
regional health authority. The board of the regional health 351
authority shall have and assume the powers, authority, rights, 352
privileges and immunities conferred on the owners and the boards 353
of trustees of community hospitals, respectively, as set forth in 354
Sections 41-13-10 through 41-13-53 and Sections 41-13-101 through 355
41-13-107, except as amended by or otherwise provided in Sections 356
2 through 20 of this act, and also except as follows: 357
(a) Any contract for the purchase of real property by 358
the authority board shall not require ratification or approval by 359
any owner; 360
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(b) The borrowing authority of the authority board 361
shall not be subject to any limitation, restriction or prior 362
approval by any owner; 363
(c) The authority board shall not be required to submit 364
to any owner a proposed budget for the ensuing fiscal year, as set 365
forth in Section 41-13-47, and the authority board shall not be 366
required to obtain the approval of any budget by any owner; and 367
(d) The authority board shall not be required to file 368
with any owner a full fiscal year report, as set forth in Section 369
41-13-47. 370
SECTION 12. Additional powers of the authority board. In 371
addition to the powers otherwise granted by Sections 2 through 20 372
of this act or any other act or law of this state, or by any state 373
regulation or federal law or regulation, and to the extent at the 374
time not prohibited by the Constitution of Mississippi, in order 375
to achieve the important health care purposes of Sections 2 376
through 20 of this act, the authority board shall have, together 377
with all powers incidental thereto or necessary to discharge the 378
powers granted specifically in this act, the following powers and 379
authority: 380
(a) To develop a strategic plan for the authority and 381
the community hospitals participating in the authority; 382
(b) To determine the addition or discontinuation of any 383
and all health care services and programs offered by community 384
hospitals participating in the authority; 385
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(c) To request or apply for, receive and expend any 386
federal or state appropriations, grants, Medicaid program 387
payments, or other payments or money of any amount or nature; 388
(d) To sue and be sued in its own name in civil suits 389
and actions, and to defend suits and actions against it, subject, 390
however, to Sections 11-46-1 through 11-46-23, which are made 391
applicable to the authority; 392
(e) To adopt, alter, amend and repeal bylaws, rules and 393
regulations, not inconsistent with the provisions of Sections 2 394
through 20 of this act, for the regulation and conduct of its 395
affairs and business; 396
(f) To acquire, construct, reconstruct, equip, enlarge, 397
expand, alter, repair, improve, maintain, furnish and operate 398
health care facilities at such place or places, within and without 399
the state, as it considers necessary or advisable; 400
(g) To lease or otherwise make available any health 401
care facilities or other of its properties and assets to such 402
persons, firms, partnerships, associations or corporations and on 403
such terms as the authority board deems to be appropriate, to 404
charge and collect rent or other fees or charges therefor and to 405
terminate any such lease or other agreement upon the failure of 406
the lessee or other party thereto to comply with any of its 407
obligations under the lease or agreement; 408
(h) To receive, acquire, take and hold (whether by 409
purchase, gift, transfer, foreclosure, lease, devise, option or 410
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otherwise) real and personal property of every description, or any 411
interest therein, and to manage, improve and dispose of the same 412
by any form of legal conveyance or transfer; 413
(i) To mortgage, pledge or otherwise convey its 414
property and its revenues from any source; 415
(j) To borrow money in order to provide funds for any 416
lawful authority function, use or purpose and, in evidence of such 417
borrowing, to sell and issue interest-bearing securities in the 418
manner provided and subject to the limitations set forth 419
hereinafter; 420
(k) To pledge for payment of any of its securities and 421
revenues (including proceeds from any hospital tax to which it may 422
be entitled) and to mortgage or pledge any or all of its health 423
care facilities or other assets or properties or any part or parts 424
thereof, whether then owned or thereafter acquired, as security 425
for the payment of the principal of and the interest and premium, 426
if any, on any securities so issued and any agreements made in 427
connection with such securities; 428
(l) To provide instruction and training for, and to 429
contract for the instruction and training of, nurses, technicians 430
and other technical, professional and paramedical personnel; 431
(m) To affiliate with, and to contract to provide 432
training and clinical experience for students of, other 433
institutions; 434
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(n) To contract for the operation of any department, 435
section, equipment or holdings of the authority, and to enter into 436
agreements with any person, firm or corporation for the management 437
by that person, firm or corporation on behalf of the authority of 438
any of its properties or for the more efficient or economical 439
performance of clerical, accounting, administrative and other 440
functions relating to its health care facilities; 441
(o) To establish, collect and alter charges for 442
services rendered and supplies furnished by it; 443
(p) To make all needful or appropriate rules and 444
regulations for the conduct of any health care facilities and 445
other properties owned or operated by it and to alter such rules 446
and regulations; 447
(q) To provide for such insurance as the business of 448
the authority may require; 449
(r) To receive and accept from any source, any type of 450
aid or contributions in the form of money, property, labor or 451
other things of value, to be held, used and applied to carry out 452
the purposes of Sections 2 through 20 of this act, subject to any 453
lawful condition upon which any such aid or contributions may be 454
given or made; 455
(s) To cooperate with the State Board of Health and the 456
State Department of Health and to make contracts with either of 457
those agencies respecting the operation of any health care 458
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facilities or other properties owned or operated by it, whether as 459
an agent for either or both of those agencies or otherwise; 460
(t) To enter into contracts with, to accept aid, loans 461
and grants from, to cooperate with and to do any and all things 462
not specifically prohibited by this act or the Constitution of 463
Mississippi that may be necessary in order to avail itself of the 464
aid and cooperation of the United States of America, the state, 465
any county or municipality, or any agency, instrumentality or 466
political subdivision of any of the foregoing in furtherance of 467
the purposes of this article; to give such assurances, contractual 468
or otherwise, to or for the benefit of any of the foregoing as may 469
be required in connection with, or as conditions precedent to the 470
receipt of, any such aid, loan or grant; and to take such action 471
not in violation of law as may be necessary in order to qualify 472
the authority to receive funds appropriated by any of the 473
foregoing; 474
(u) To give such assurances, contractual or otherwise, 475
and to make such commitments and agreements as may be necessary or 476
desirable to preclude the exercise of any rights of recovery with 477
respect to, or the forfeiture of title to, any of its health care 478
facilities or other property proposed to be acquired by it; 479
(v) To make and alter rules and regulations for the 480
treatment of indigent patients; 481
(w) To assume any obligations of any entity that 482
conveys and transfers to the authority any health care facilities 483
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or other property, or interest therein, provided that such 484
obligations appertain to the health care facilities, property or 485
interest so conveyed and transferred to the authority; 486
(x) To assume, establish, fund and maintain retirement, 487
pension or other employee benefit plans for its employees; 488
(y) To appoint, employ, contract with, and provide for 489
the compensation of, such employees and agents, including, but not 490
limited to, architects, attorneys, consultants, engineers, 491
accountants, financial experts, fiscal agents and such other 492
advisers, consultants and agents as the business of the authority 493
may require; 494
(z) To enter into affiliation, cooperation, 495
territorial, management or other similar agreements with other 496
institutions (public or private) for the sharing, division, 497
allocation or exclusive furnishing of services, referral of 498
patients, management of facilities and other similar activities; 499
(aa) To exercise all powers granted under this section 500
in such a manner as the regional health authority, through the 501
authority board, may determine to be consistent with the purposes 502
of this act, including the state action immunity provided by 503
Section 3 of this act from state and federal antitrust laws to the 504
fullest extent possible, notwithstanding that as a consequence of 505
such exercise of such powers it engages in activities that may be 506
deemed "anticompetitive" or which displace competition within the 507
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meaning or contemplation of the antitrust laws of this state or of 508
the United States; and 509
(bb) To enter into such contracts, agreements, leases 510
and other instruments, and to take such other actions, as may be 511
necessary or convenient to accomplish any purpose for which the 512
authority was organized or to exercise any power expressly granted 513
hereunder. 514
SECTION 13. Liability and insurance. The authority board is 515
authorized, in its discretion, to obtain and pay for, out of 516
operating funds of the authority, liability insurance as described 517
in Section 41-13-11. 518
SECTION 14. Immunity of authority from liability and suit. 519
The authority shall be deemed a "governmental entity" and 520
"political subdivision" as defined in Section 11-46-1, and as 521
such, shall be entitled to all of the rights, privileges, benefits 522
and immunities set forth in Sections 11-46-1 through 11-46-23, and 523
shall be subject to all terms and provisions of those sections. 524
SECTION 15. Issuance of bonds. The authority is authorized 525
and empowered to make appropriations of funds and to issue and 526
sell bonds, notes or other evidences of indebtedness thereof, for 527
the benefit of the authority, in the same manner as, and subject 528
to all duties, obligations and provisions set forth in Sections 529
41-13-19, 41-13-21, 41-13-23, 41-13-24 and 41-13-25. 530
SECTION 16. Trust to insure against public liability claims. 531
The authority is authorized to establish, maintain, administer and 532
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operate any trust as described in Section 41-13-101 and, in such 533
event, shall be subject to the terms, provisions and requirements 534
of Sections 41-13-101 through 41-13-107. 535
SECTION 17. Retirement and disability benefits. The 536
authority established under Sections 2 through 20 of this act is 537
authorized to participate in the Public Employees' Retirement 538
System as a political subdivision under the provisions of Section 539
25-11-105(f). 540
SECTION 18. Lease or sale of community hospitals. The 541
authority established under Sections 2 through 20 of this act 542
shall not be subject to the provisions of Sections 41-13-15(7) 543
through 41-13-15(11). 544
SECTION 19. Medicaid. The authority established under 545
Sections 2 through 20 of this act shall be treated as a non-state 546
governmental hospital, and shall have all rights, privileges and 547
entitlements of a nonstate governmental hospital for purposes of 548
the Mississippi Medicaid program and its implementing statutes and 549
regulations. The Division of Medicaid is authorized and directed 550
to create and implement a supplemental payment program to support 551
the essential services and operations of the Delta Regional Health 552
Authority created by Sections 2 through 20 of this act. 553
SECTION 20. Implied powers. In addition to all of the other 554
powers conferred upon it in this Sections 2 through 20 of this 555
act, the regional health authority may do all things necessary and 556
convenient to carry out the powers expressly given in this act not 557
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inconsistent with the provisions of any other law, except as 558
otherwise provided in this act. 559
SECTION 21. Section 11-46-1, Mississippi Code of 1972, is 560
amended as follows: 561
11-46-1. As used in this chapter, the following terms shall 562
have the meanings ascribed unless the context otherwise requires: 563
(a) "Claim" means any demand to recover damages from a 564
governmental entity as compensation for injuries. 565
(b) "Claimant" means any person seeking compensation 566
under the provisions of this chapter, whether by administrative 567
remedy or through the courts. 568
(c) "Board" means the Mississippi Tort Claims Board. 569
(d) "Department" means the Department of Finance and 570
Administration. 571
(e) "Director" means the executive director of the 572
department who is also the executive director of the board. 573
(f) "Employee" means any officer, employee or servant 574
of the State of Mississippi or a political subdivision of the 575
state, including elected or appointed officials and persons acting 576
on behalf of the state or a political subdivision in any official 577
capacity, temporarily or permanently, in the service of the state 578
or a political subdivision whether with or without compensation, 579
including firefighters who are members of a volunteer fire 580
department that is a political subdivision. The term "employee" 581
shall not mean a person or other legal entity while acting in the 582
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capacity of an independent contractor under contract to the state 583
or a political subdivision; and 584
(i) For purposes of the limits of liability 585
provided for in Section 11-46-15, the term "employee" shall 586
include: 587
1. Physicians under contract to provide 588
health services with the State Board of Health, the State Board of 589
Mental Health or any county or municipal jail facility while 590
rendering services under the contract; 591
2. Any physician, dentist or other health 592
care practitioner employed by the University of Mississippi 593
Medical Center (UMMC) and its departmental practice plans who is a 594
faculty member and provides health care services only for patients 595
at UMMC or its affiliated practice sites, including any physician 596
or other health care practitioner employed by UMMC under an 597
arrangement with a public or private health-related organization; 598
3. Any physician, dentist or other health 599
care practitioner employed by any university under the control of 600
the Board of Trustees of State Institutions of Higher Learning who 601
practices only on the campus of any university under the control 602
of the Board of Trustees of State Institutions of Higher Learning; 603
4. Any physician, dentist or other health 604
care practitioner employed by the State Veterans Affairs Board and 605
who provides health care services for patients for the State 606
Veterans Affairs Board; 607
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(ii) The term "employee" shall also include 608
Mississippi Department of Child Protection Services licensed 609
foster parents for the limited purposes of coverage under the Tort 610
Claims Act as provided in Section 11-46-8; and 611
(iii) The term "employee" also shall include any 612
employee or member of the governing board of a charter school but 613
shall not include any person or entity acting in the capacity of 614
an independent contractor to provide goods or services under a 615
contract with a charter school. 616
(g) "Governmental entity" means the state and political 617
subdivisions. 618
(h) "Injury" means death, injury to a person, damage to 619
or loss of property or any other injury that a person may suffer 620
that is actionable at law or in equity. 621
(i) "Political subdivision" means any body politic or 622
body corporate other than the state responsible for governmental 623
activities only in geographic areas smaller than that of the 624
state, including, but not limited to, any county, municipality, 625
school district, charter school, volunteer fire department that is 626
a chartered nonprofit corporation providing emergency services 627
under contract with a county or municipality, community hospital 628
as defined in Section 41-13-10, regional health authority as 629
defined in Section 4 of this act, airport authority, or other 630
instrumentality of the state, whether or not the body or 631
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instrumentality has the authority to levy taxes or to sue or be 632
sued in its own name. 633
(j) "State" means the State of Mississippi and any 634
office, department, agency, division, bureau, commission, board, 635
institution, hospital, college, university, airport authority or 636
other instrumentality thereof, whether or not the body or 637
instrumentality has the authority to levy taxes or to sue or be 638
sued in its own name. 639
(k) "Law" means all species of law, including, but not 640
limited to, any and all constitutions, statutes, case law, common 641
law, customary law, court order, court rule, court decision, court 642
opinion, court judgment or mandate, administrative rule or 643
regulation, executive order, or principle or rule of equity. 644
SECTION 22. Section 41-7-173, Mississippi Code of 1972, is 645
amended as follows: 646
41-7-173. For the purposes of Section 41-7-171 et seq., the 647
following words shall have the meanings ascribed herein, unless 648
the context otherwise requires: 649
(a) "Affected person" means (i) the applicant; (ii) a 650
person residing within the geographic area to be served by the 651
applicant's proposal; (iii) a person who regularly uses health 652
care facilities or HMOs located in the geographic area of the 653
proposal which provide similar service to that which is proposed; 654
(iv) health care facilities and HMOs which have, prior to receipt 655
of the application under review, formally indicated an intention 656
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to provide service similar to that of the proposal being 657
considered at a future date; (v) third-party payers who reimburse 658
health care facilities located in the geographical area of the 659
proposal; or (vi) any agency that establishes rates for health 660
care services or HMOs located in the geographic area of the 661
proposal. 662
(b) "Certificate of need" means a written order of the 663
State Department of Health setting forth the affirmative finding 664
that a proposal in prescribed application form, sufficiently 665
satisfies the plans, standards and criteria prescribed for such 666
service or other project by Section 41-7-171 et seq., and by rules 667
and regulations promulgated thereunder by the State Department of 668
Health. 669
(c) (i) "Capital expenditure," when pertaining to 670
defined major medical equipment, shall mean an expenditure which, 671
under generally accepted accounting principles consistently 672
applied, is not properly chargeable as an expense of operation and 673
maintenance and which exceeds One Million Five Hundred Thousand 674
Dollars ($1,500,000.00). 675
(ii) "Capital expenditure," when pertaining to 676
other than major medical equipment, shall mean any expenditure 677
which under generally accepted accounting principles consistently 678
applied is not properly chargeable as an expense of operation and 679
maintenance and which exceeds, for clinical health services, as 680
defined in paragraph (k) below, Five Million Dollars 681
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($5,000,000.00), adjusted for inflation as published by the State 682
Department of Health or which exceeds, for nonclinical health 683
services, as defined in paragraph (k) below, Ten Million Dollars 684
($10,000,000.00), adjusted for inflation as published by the State 685
Department of Health. 686
(iii) A "capital expenditure" shall include the 687
acquisition, whether by lease, sufferance, gift, devise, legacy, 688
settlement of a trust or other means, of any facility or part 689
thereof, or equipment for a facility, the expenditure for which 690
would have been considered a capital expenditure if acquired by 691
purchase. Transactions which are separated in time but are 692
planned to be undertaken within twelve (12) months of each other 693
and are components of an overall plan for meeting patient care 694
objectives shall, for purposes of this definition, be viewed in 695
their entirety without regard to their timing. 696
(iv) In those instances where a health care 697
facility or other provider of health services proposes to provide 698
a service in which the capital expenditure for major medical 699
equipment or other than major medical equipment or a combination 700
of the two (2) may have been split between separate parties, the 701
total capital expenditure required to provide the proposed service 702
shall be considered in determining the necessity of certificate of 703
need review and in determining the appropriate certificate of need 704
review fee to be paid. The capital expenditure associated with 705
facilities and equipment to provide services in Mississippi shall 706
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be considered regardless of where the capital expenditure was 707
made, in state or out of state, and regardless of the domicile of 708
the party making the capital expenditure, in state or out of 709
state. 710
(d) "Change of ownership" includes, but is not limited 711
to, inter vivos gifts, purchases, transfers, lease arrangements, 712
cash and/or stock transactions or other comparable arrangements 713
whenever any person or entity acquires or controls a majority 714
interest of an existing health care facility, and/or the change of 715
ownership of major medical equipment, a health service, or an 716
institutional health service. Changes of ownership from 717
partnerships, single proprietorships or corporations to another 718
form of ownership are specifically included. However, "change of 719
ownership" shall not include any inherited interest acquired as a 720
result of a testamentary instrument or under the laws of descent 721
and distribution of the State of Mississippi; and shall not 722
include the participation of a community hospital in a regional 723
health authority as provided in Sections 2 through 20 of this act. 724
(e) "Commencement of construction" means that all of 725
the following have been completed with respect to a proposal or 726
project proposing construction, renovating, remodeling or 727
alteration: 728
(i) A legally binding written contract has been 729
consummated by the proponent and a lawfully licensed contractor to 730
construct and/or complete the intent of the proposal within a 731
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specified period of time in accordance with final architectural 732
plans which have been approved by the licensing authority of the 733
State Department of Health; 734
(ii) Any and all permits and/or approvals deemed 735
lawfully necessary by all authorities with responsibility for such 736
have been secured; and 737
(iii) Actual bona fide undertaking of the subject 738
proposal has commenced, and a progress payment of at least one 739
percent (1%) of the total cost price of the contract has been paid 740
to the contractor by the proponent, and the requirements of this 741
paragraph (e) have been certified to in writing by the State 742
Department of Health. 743
Force account expenditures, such as deposits, securities, 744
bonds, et cetera, may, in the discretion of the State Department 745
of Health, be excluded from any or all of the provisions of 746
defined commencement of construction. 747
(f) "Consumer" means an individual who is not a 748
provider of health care as defined in paragraph (q) of this 749
section. 750
(g) "Develop," when used in connection with health 751
services, means to undertake those activities which, on their 752
completion, will result in the offering of a new institutional 753
health service or the incurring of a financial obligation as 754
defined under applicable state law in relation to the offering of 755
such services. 756
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(h) "Health care facility" includes hospitals, 757
psychiatric hospitals, chemical dependency hospitals, skilled 758
nursing facilities, end-stage renal disease (ESRD) facilities, 759
including freestanding hemodialysis units, intermediate care 760
facilities, ambulatory surgical facilities, intermediate care 761
facilities for individuals with intellectual disabilities, home 762
health agencies, psychiatric residential treatment facilities, 763
pediatric skilled nursing facilities, long-term care hospitals, 764
comprehensive medical rehabilitation facilities, including 765
facilities owned or operated by the state or a political 766
subdivision or instrumentality of the state, but does not include 767
Christian Science sanatoriums operated or listed and certified by 768
the First Church of Christ, Scientist, Boston, Massachusetts. 769
This definition shall not apply to facilities for the private 770
practice, either independently or by incorporated medical groups, 771
of physicians, dentists or health care professionals except where 772
such facilities are an integral part of an institutional health 773
service. The various health care facilities listed in this 774
paragraph shall be defined as follows: 775
(i) "Hospital" means an institution which is 776
primarily engaged in providing to inpatients, by or under the 777
supervision of physicians, diagnostic services and therapeutic 778
services for medical diagnosis, treatment and care of injured, 779
disabled or sick persons, or rehabilitation services for the 780
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rehabilitation of injured, disabled or sick persons. Such term 781
does not include psychiatric hospitals. 782
(ii) "Psychiatric hospital" means an institution 783
which is primarily engaged in providing to inpatients, by or under 784
the supervision of a physician, psychiatric services for the 785
diagnosis and treatment of persons with mental illness. 786
(iii) "Chemical dependency hospital" means an 787
institution which is primarily engaged in providing to inpatients, 788
by or under the supervision of a physician, medical and related 789
services for the diagnosis and treatment of chemical dependency 790
such as alcohol and drug abuse. 791
(iv) "Skilled nursing facility" means an 792
institution or a distinct part of an institution which is 793
primarily engaged in providing to inpatients skilled nursing care 794
and related services for patients who require medical or nursing 795
care or rehabilitation services for the rehabilitation of injured, 796
disabled or sick persons. 797
(v) "End-stage renal disease (ESRD) facilities" 798
means kidney disease treatment centers, which includes 799
freestanding hemodialysis units and limited care facilities. The 800
term "limited care facility" generally refers to an 801
off-hospital-premises facility, regardless of whether it is 802
provider or nonprovider operated, which is engaged primarily in 803
furnishing maintenance hemodialysis services to stabilized 804
patients. 805
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(vi) "Intermediate care facility" means an 806
institution which provides, on a regular basis, health-related 807
care and services to individuals who do not require the degree of 808
care and treatment which a hospital or skilled nursing facility is 809
designed to provide, but who, because of their mental or physical 810
condition, require health-related care and services (above the 811
level of room and board). 812
(vii) "Ambulatory surgical facility" means a 813
facility primarily organized or established for the purpose of 814
performing surgery for outpatients and is a separate identifiable 815
legal entity from any other health care facility. Such term does 816
not include the offices of private physicians or dentists, whether 817
for individual or group practice, and does not include any 818
abortion facility as defined in Section 41-75-1(f). 819
(viii) "Intermediate care facility for individuals 820
with intellectual disabilities" means an intermediate care 821
facility that provides health or rehabilitative services in a 822
planned program of activities to persons with an intellectual 823
disability, also including, but not limited to, cerebral palsy and 824
other conditions covered by the Federal Developmentally Disabled 825
Assistance and Bill of Rights Act, Public Law 94-103. 826
(ix) "Home health agency" means a public or 827
privately owned agency or organization, or a subdivision of such 828
an agency or organization, properly authorized to conduct business 829
in Mississippi, which is primarily engaged in providing to 830
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individuals at the written direction of a licensed physician, in 831
the individual's place of residence, skilled nursing services 832
provided by or under the supervision of a registered nurse 833
licensed to practice in Mississippi, and one or more of the 834
following services or items: 835
1. Physical, occupational or speech therapy; 836
2. Medical social services; 837
3. Part-time or intermittent services of a 838
home health aide; 839
4. Other services as approved by the 840
licensing agency for home health agencies; 841
5. Medical supplies, other than drugs and 842
biologicals, and the use of medical appliances; or 843
6. Medical services provided by an intern or 844
resident-in-training at a hospital under a teaching program of 845
such hospital. 846
Further, all skilled nursing services and those services 847
listed in items 1 through 4 of this subparagraph (ix) must be 848
provided directly by the licensed home health agency. For 849
purposes of this subparagraph, "directly" means either through an 850
agency employee or by an arrangement with another individual not 851
defined as a health care facility. 852
This subparagraph (ix) shall not apply to health care 853
facilities which had contracts for the above services with a home 854
health agency on January 1, 1990. 855
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(x) "Psychiatric residential treatment facility" 856
means any nonhospital establishment with permanent licensed 857
facilities which provides a twenty-four-hour program of care by 858
qualified therapists, including, but not limited to, duly licensed 859
mental health professionals, psychiatrists, psychologists, 860
psychotherapists and licensed certified social workers, for 861
emotionally disturbed children and adolescents referred to such 862
facility by a court, local school district or by the Department of 863
Human Services, who are not in an acute phase of illness requiring 864
the services of a psychiatric hospital, and are in need of such 865
restorative treatment services. For purposes of this 866
subparagraph, the term "emotionally disturbed" means a condition 867
exhibiting one or more of the following characteristics over a 868
long period of time and to a marked degree, which adversely 869
affects educational performance: 870
1. An inability to learn which cannot be 871
explained by intellectual, sensory or health factors; 872
2. An inability to build or maintain 873
satisfactory relationships with peers and teachers; 874
3. Inappropriate types of behavior or 875
feelings under normal circumstances; 876
4. A general pervasive mood of unhappiness or 877
depression; or 878
5. A tendency to develop physical symptoms or 879
fears associated with personal or school problems. An 880
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establishment furnishing primarily domiciliary care is not within 881
this definition. 882
(xi) "Pediatric skilled nursing facility" means an 883
institution or a distinct part of an institution that is primarily 884
engaged in providing to inpatients skilled nursing care and 885
related services for persons under twenty-one (21) years of age 886
who require medical or nursing care or rehabilitation services for 887
the rehabilitation of injured, disabled or sick persons. 888
(xii) "Long-term care hospital" means a 889
freestanding, Medicare-certified hospital that has an average 890
length of inpatient stay greater than twenty-five (25) days, which 891
is primarily engaged in providing chronic or long-term medical 892
care to patients who do not require more than three (3) hours of 893
rehabilitation or comprehensive rehabilitation per day, and has a 894
transfer agreement with an acute care medical center and a 895
comprehensive medical rehabilitation facility. Long-term care 896
hospitals shall not use rehabilitation, comprehensive medical 897
rehabilitation, medical rehabilitation, sub-acute rehabilitation, 898
nursing home, skilled nursing facility or sub-acute care facility 899
in association with its name. 900
(xiii) "Comprehensive medical rehabilitation 901
facility" means a hospital or hospital unit that is licensed 902
and/or certified as a comprehensive medical rehabilitation 903
facility which provides specialized programs that are accredited 904
by the Commission on Accreditation of Rehabilitation Facilities 905
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and supervised by a physician board certified or board eligible in 906
physiatry or other doctor of medicine or osteopathy with at least 907
two (2) years of training in the medical direction of a 908
comprehensive rehabilitation program that: 909
1. Includes evaluation and treatment of 910
individuals with physical disabilities; 911
2. Emphasizes education and training of 912
individuals with disabilities; 913
3. Incorporates at least the following core 914
disciplines: 915
a. Physical Therapy; 916
b. Occupational Therapy; 917
c. Speech and Language Therapy; 918
d. Rehabilitation Nursing; and 919
4. Incorporates at least three (3) of the 920
following disciplines: 921
a. Psychology; 922
b. Audiology; 923
c. Respiratory Therapy; 924
d. Therapeutic Recreation; 925
e. Orthotics; 926
f. Prosthetics; 927
g. Special Education; 928
h. Vocational Rehabilitation; 929
i. Psychotherapy; 930
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j. Social Work; 931
k. Rehabilitation Engineering. 932
These specialized programs include, but are not limited to: 933
spinal cord injury programs, head injury programs and infant and 934
early childhood development programs. 935
(i) "Health maintenance organization" or "HMO" means a 936
public or private organization organized under the laws of this 937
state or the federal government which: 938
(i) Provides or otherwise makes available to 939
enrolled participants health care services, including 940
substantially the following basic health care services: usual 941
physician services, hospitalization, laboratory, x-ray, emergency 942
and preventive services, and out-of-area coverage; 943
(ii) Is compensated (except for copayments) for 944
the provision of the basic health care services listed in 945
subparagraph (i) of this paragraph to enrolled participants on a 946
predetermined basis; and 947
(iii) Provides physician services primarily: 948
1. Directly through physicians who are either 949
employees or partners of such organization; or 950
2. Through arrangements with individual 951
physicians or one or more groups of physicians (organized on a 952
group practice or individual practice basis). 953
(j) "Health service area" means a geographic area of 954
the state designated in the State Health Plan as the area to be 955
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used in planning for specified health facilities and services and 956
to be used when considering certificate of need applications to 957
provide health facilities and services. 958
(k) "Health services" means clinically related (i.e., 959
diagnostic, treatment or rehabilitative) services and includes 960
alcohol, drug abuse, mental health and home health care services. 961
"Clinical health services" shall only include those activities 962
which contemplate any change in the existing bed complement of any 963
health care facility through the addition or conversion of any 964
beds, under Section 41-7-191(1)(c) or propose to offer any health 965
services if those services have not been provided on a regular 966
basis by the proposed provider of such services within the period 967
of twelve (12) months prior to the time such services would be 968
offered, under Section 41-7-191(1)(d). "Nonclinical health 969
services" shall be all other services which do not involve any 970
change in the existing bed complement or offering health services 971
as described above. 972
(l) "Institutional health services" shall mean health 973
services provided in or through health care facilities and shall 974
include the entities in or through which such services are 975
provided. 976
(m) "Major medical equipment" means medical equipment 977
designed for providing medical or any health-related service which 978
costs in excess of One Million Five Hundred Thousand Dollars 979
($1,500,000.00). However, this definition shall not be applicable 980
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to clinical laboratories if they are determined by the State 981
Department of Health to be independent of any physician's office, 982
hospital or other health care facility or otherwise not so defined 983
by federal or state law, or rules and regulations promulgated 984
thereunder. 985
(n) "State Department of Health" or "department" shall 986
mean the state agency created under Section 41-3-15, which shall 987
be considered to be the State Health Planning and Development 988
Agency, as defined in paragraph (u) of this section. 989
(o) "Offer," when used in connection with health 990
services, means that it has been determined by the State 991
Department of Health that the health care facility is capable of 992
providing specified health services. 993
(p) "Person" means an individual, a trust or estate, 994
partnership, corporation (including associations, joint-stock 995
companies and insurance companies), the state or a political 996
subdivision or instrumentality of the state. 997
(q) "Provider" shall mean any person who is a provider 998
or representative of a provider of health care services requiring 999
a certificate of need under Section 41-7-171 et seq., or who has 1000
any financial or indirect interest in any provider of services. 1001
(r) "Radiation therapy services" means the treatment of 1002
cancer and other diseases using ionizing radiation of either high 1003
energy photons (x-rays or gamma rays) or charged particles 1004
(electrons, protons or heavy nuclei). However, for purposes of a 1005
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certificate of need, radiation therapy services shall not include 1006
low energy, superficial, external beam x-ray treatment of 1007
superficial skin lesions. 1008
(s) "Secretary" means the Secretary of Health and Human 1009
Services, and any officer or employee of the Department of Health 1010
and Human Services to whom the authority involved has been 1011
delegated. 1012
(t) "State Health Plan" means the sole and official 1013
statewide health plan for Mississippi which identifies priority 1014
state health needs and establishes standards and criteria for 1015
health-related activities which require certificate of need review 1016
in compliance with Section 41-7-191. 1017
(u) "State Health Planning and Development Agency" 1018
means the agency of state government designated to perform health 1019
planning and resource development programs for the State of 1020
Mississippi. 1021
SECTION 23. Section 41-13-11, Mississippi Code of 1972, is 1022
amended as follows: 1023
41-13-11. (1) * * * The board of trustees of any community 1024
hospital is * * * authorized, in its discretion, to obtain and pay 1025
for, out of operating funds of the community hospital, liability 1026
insurance of such kinds as * * * the board of trustees deems 1027
advisable covering the operation of * * * the community hospital, 1028
including trustees, employees and volunteers, and every department 1029
thereof, and all machinery, equipment, appliances and motor 1030
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vehicles thereof or used in connection therewith so as to cover 1031
damages or injury to persons or property or both caused by the 1032
negligence of any member of * * * the board of trustees or of any 1033
officer, director, agent, servant, attorney, employee or volunteer 1034
of such hospital while engaged in the performance of his duties or 1035
working in connection with the operation of * * * the community 1036
hospital. Such insurance shall either be procured from a company 1037
or companies authorized to do business and doing business in the 1038
State of Mississippi or provided through a program of self 1039
insurance established pursuant to the provisions of Section 1040
11-46-17 * * *. Such insurance shall be for such amounts of 1041
coverage and shall cover such trustees, employees, volunteers, 1042
departments, installations, equipment, facilities and activities 1043
as the board of trustees, in its discretion, shall determine. The 1044
board of trustees may likewise indemnify, either by the purchase 1045
of insurance or, directly, where funds are available, in whole or 1046
in part, any trustee, officer, director, agent, volunteer or 1047
employee of * * * the facility or program for actual personal 1048
expenses incurred in the defense of any suit, or judgments 1049
resulting from * * * the suit, brought against * * * the trustee, 1050
officer, director, agent, volunteer or employee for alleged 1051
negligent or wrongful conduct committed while under the employment 1052
of or while providing service to a community hospital. 1053
( * * *2) Notwithstanding the authority to purchase or 1054
provide liability insurance as provided for in subsection 1055
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( * * *1) of this section, any community hospital, owner or board 1056
of trustees shall be subject to and shall be governed by the 1057
provisions of Section 11-46-1 et seq., * * * for any cause of 1058
action which accrues from and after October 1, 1993, on account of 1059
any wrongful or tortious act or omission of any such governmental 1060
entity, as defined in Section 11-46-1, * * * or its employees 1061
relating to or in connection with any activity or operation of any 1062
community hospital. 1063
(3) The board of a regional health authority under Sections 1064
2 through 20 of this act is authorized, in its discretion, to 1065
obtain and pay for, out of operating funds of the authority, 1066
liability insurance as described in this section. 1067
SECTION 24. Section 41-13-15, Mississippi Code of 1972, is 1068
amended as follows: 1069
41-13-15. (1) Any county and/or any political or judicial 1070
subdivision of a county and/or any municipality of the State of 1071
Mississippi, acting individually or jointly, may acquire and hold 1072
real estate for a community hospital either recognized and/or 1073
licensed as such by either the State of Mississippi or the United 1074
States Government, and may, after complying with applicable health 1075
planning and licensure statutes, construct a community hospital 1076
thereon and/or appropriate funds according to the provisions of 1077
this chapter for the construction, remodeling, maintaining, 1078
equipping, furnishing and expansion of such facilities by the 1079
board of trustees upon such real estate. 1080
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(2) Where joint ownership of a community hospital is 1081
involved, the owners are * * * authorized to contract with each 1082
other for determining the pro rata ownership of such community 1083
hospital, the proportionate cost of maintenance and operation, and 1084
the proportionate financing that each will contribute to the 1085
community hospital. 1086
(3) The owners may likewise contract with each other, or on 1087
behalf of any subordinate political or judicial subdivision, or 1088
with the board of trustees of a community hospital, and/or any 1089
agency of the State of Mississippi or the United States 1090
Government, for necessary purposes related to the establishment, 1091
operation or maintenance of community hospitals and related 1092
programs wherever located, and may either accept from, sell or 1093
contribute to the other entities, monies, personal property or 1094
existing health facilities. The owners or the board of trustees 1095
may also receive monies, property or any other valuables of any 1096
kind through gifts, donations, devises or other recognized means 1097
from any source for the purpose of hospital use. 1098
(4) Owners and boards of trustees, acting jointly or 1099
severally, may acquire and hold real estate for offices for 1100
physicians and other health care practitioners and related health 1101
care or support facilities, provided that any contract for the 1102
purchase of real property must be ratified by the owner, and may 1103
thereon construct and equip, maintain and remodel or expand such 1104
offices and related facilities, and the board of trustees may 1105
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lease same to members of the hospital staff or others at a rate 1106
deemed to be in the best interest of the community hospital. 1107
(5) If any political or judicial subdivision of a county is 1108
obligated hereunder, the boundaries of such district shall not be 1109
altered in such a manner as to relieve any portion thereof of its 1110
obligation hereunder. 1111
(6) Owners may convey to any other owner any or all 1112
property, real or personal, comprising any existing community 1113
hospital, including related facilities, wherever located, owned by 1114
such conveying owner. Such conveyance shall be upon such terms 1115
and conditions as may be agreed upon and may make such provisions 1116
for transfers of operating funds and/or for the assumption of 1117
liabilities of the community hospital as may be deemed appropriate 1118
by the respective owners. 1119
(7) (a) Except as provided for in subsection (11) of this 1120
section, owners may lease all or part of the property, real or 1121
personal, comprising a community hospital, including any related 1122
facilities, wherever located, and/or assets of such community 1123
hospital, to any individual, partnership or corporation, whether 1124
operating on a nonprofit basis or on a profit basis, or to the 1125
board of trustees of such community hospital or any other owner or 1126
board of trustees, subject to the applicable provisions of 1127
subsections (8), (9) and (10) of this section. The term of such 1128
lease shall not exceed fifty (50) years. Such lease shall be 1129
conditioned upon (i) the leased facility continuing to operate in 1130
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a manner safeguarding community health interests; (ii) the 1131
proceeds from the lease being first applied against such bonds, 1132
notes or other evidence of indebtedness as are issued pursuant to 1133
Section 41-13-19 as and when they are due, provided that the terms 1134
of the lease shall cover any indebtedness pursuant to Section 1135
41-13-19; and (iii) any surplus proceeds from the lease being 1136
deposited in the general fund of the owner, which proceeds may be 1137
used for any lawful purpose. Such lease shall be subject to the 1138
express approval of the board of trustees of the community 1139
hospital, except in the case where the board of trustees of the 1140
community hospital will be the lessee. However, owners may not 1141
lease any community hospital to the University of Mississippi 1142
Medical Center unless first the University of Mississippi Medical 1143
Center has obtained authority to lease such hospital under 1144
specific terms and conditions from the Board of Trustees of State 1145
Institutions of Higher Learning. 1146
If the owner wishes to lease a community hospital without an 1147
option to sell it and the approval of the board of trustees of the 1148
community hospital is required but is not given within thirty (30) 1149
days of the request for its approval by the owner, then the owner 1150
may enter such lease as described herein on the following 1151
conditions: A resolution by the owner describing its intention to 1152
enter such lease shall be published once a week for at least three 1153
(3) consecutive weeks in at least one (1) newspaper published in 1154
the county or city, as the case may be, or if none be so 1155
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published, in a newspaper having a general circulation therein. 1156
The first publication of such notice shall be made not less than 1157
twenty-one (21) days prior to the date fixed in such resolution 1158
for the lease of the community hospital and the last publication 1159
shall be made not more than seven (7) days prior to such date. 1160
If, on or prior to the date fixed in such resolution for the lease 1161
of the community hospital, there shall be filed with the clerk of 1162
the owner a petition signed by twenty percent (20%) or fifteen 1163
hundred (1500), whichever is less, of the qualified voters of such 1164
owner, requesting that an election be called and held on the 1165
question of the lease of the community hospital, then it shall be 1166
the duty of the owner to call and provide for the holding of an 1167
election as petitioned for. In such case, no such lease shall be 1168
entered into unless authorized by the affirmative vote of the 1169
majority of the qualified voters of such owner who vote on the 1170
proposition at such election. Notice of such election shall be 1171
given by publication in like manner as hereinabove provided for 1172
the publication of the initial resolution. Such election shall be 1173
conducted and the return thereof made, canvassed and declared as 1174
nearly as may be in like manner as is now or may hereafter be 1175
provided by law in the case of general elections in such owner. 1176
If, on or prior to the date fixed in the owner's resolution for 1177
the lease of the community hospital, no such petition as described 1178
above is filed with the clerk of the owner, then the owner may 1179
proceed with the lease subject to the other requirements of this 1180
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section. Subject to the above conditions, the lease agreement 1181
shall be upon such terms and conditions as may be agreed upon and 1182
may make such provision for transfers of tangible and intangible 1183
personal property and operating funds and/or for the assumption of 1184
liabilities of the community hospital and for such lease payments, 1185
all as may be deemed appropriate by the owners. 1186
(b) Owners may sell and convey all or part of the 1187
property, real or personal, comprising a community hospital, 1188
including any related facilities, wherever located, and/or assets 1189
of such community hospital, to any individual, partnership or 1190
corporation, whether operating on a nonprofit basis or on a profit 1191
basis, or to the board of trustees of such community hospital or 1192
any other owner or board of trustees, subject to the applicable 1193
provisions of subsections (8) and (10) of this section. Such sale 1194
and conveyance shall be upon such terms and conditions as may be 1195
agreed upon by the owner and the purchaser that are consistent 1196
with the requirements of this section, and the parties may make 1197
such provisions for the transfer of operating funds or for the 1198
assumption of liabilities of the facility, or both, as they deem 1199
appropriate. However, such sale and conveyance shall be 1200
conditioned upon (i) the facility continuing to operate in a 1201
manner safeguarding community health interests; (ii) the proceeds 1202
from such sale being first applied against such bonds, notes or 1203
other evidence of indebtedness as are issued pursuant to Section 1204
41-13-19 as and when they are due, provided that the terms of the 1205
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sale shall cover any indebtedness pursuant to Section 41-13-19; 1206
and (iii) any surplus proceeds from the sale being deposited in 1207
the general fund of the owner, which proceeds may be used for any 1208
lawful purpose. However, owners may not sell or convey any 1209
community hospital to the University of Mississippi Medical Center 1210
unless first the University of Mississippi Medical Center has 1211
obtained authority to purchase such hospital under specific terms 1212
and conditions from the Board of Trustees of State Institutions of 1213
Higher Learning. 1214
(8) Whenever any owner decides that it may be in its best 1215
interests to sell or lease a community hospital as provided for 1216
under subsection (7) of this section, the owner shall first 1217
contract with a certified public accounting firm, a law firm or 1218
competent professional health care or management consultants to 1219
review the current operating condition of the community hospital. 1220
The review shall consist of, at minimum, the following: 1221
(a) A review of the community's inpatient facility 1222
needs based on current workload, historical trends and 1223
projections, based on demographic data, of future needs. 1224
(b) A review of the competitive market for services, 1225
including other hospitals which serve the same area, the services 1226
provided and the market perception of the competitive hospitals. 1227
(c) A review of the hospital's strengths relative to 1228
the competition and its capacity to compete in light of projected 1229
trends and competition. 1230
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(d) An analysis of the hospital's options, including 1231
service mix and pricing strategies. If the study concludes that a 1232
sale or lease should occur, the study shall include an analysis of 1233
which option would be best for the community and how much revenues 1234
should be derived from the lease or sale. 1235
(9) After the review and analysis under subsection (8) of 1236
this section, an owner may choose to sell or lease the community 1237
hospital. If an owner chooses to sell such hospital or lease the 1238
hospital with an option to sell it, the owner shall follow the 1239
procedure specified in subsection (10) of this section. If an 1240
owner chooses to lease the hospital without an option to sell it, 1241
it shall first spread upon its minutes why such a lease is in the 1242
best interests of the persons living in the area served by the 1243
facility to be leased, and it shall make public any and all 1244
findings and recommendations made in the review required under 1245
proposals for the lease, which shall state clearly the minimum 1246
required terms of all respondents and the evaluation process that 1247
will be used when the owner reviews the proposals. The owner 1248
shall lease to the respondent submitting the highest and best 1249
proposal. In no case may the owner deviate from the process 1250
provided for in the request for proposals. 1251
(10) If an owner wishes to sell such community hospital or 1252
lease the hospital with an option to sell it, the owner first 1253
shall conduct a public hearing on the issue of the proposed sale 1254
or lease with an option to sell the hospital. Notice of the date, 1255
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time, location and purpose of the public hearing shall be 1256
published once a week for at least three (3) consecutive weeks in 1257
at least one (1) newspaper published in the county or city, as the 1258
case may be, or if none be so published, in a newspaper having a 1259
general circulation therein. The first publication of the notice 1260
shall be made not less than twenty-one (21) days before the date 1261
of the public hearing and the last publication shall be made not 1262
more than seven (7) days before that date. If there is filed with 1263
the clerk of the owner not more than twenty-one (21) days after 1264
the date of the public hearing, a petition signed by twenty 1265
percent (20%) or fifteen hundred (1500), whichever is less, of the 1266
qualified voters of the owner, requesting that an election be 1267
called and held on the question of whether the owner should 1268
proceed with the process of seeking proposals for the sale or 1269
lease with an option to sell the hospital, then it shall be the 1270
duty of the owner to call and provide for the holding of an 1271
election as petitioned for. Notice of the election shall be given 1272
by publication in the same manner as provided for the publication 1273
of the notice of the public hearing. The election shall be 1274
conducted and the return thereof made, canvassed and declared in 1275
the same manner as provided by law in the case of general 1276
elections in the owner. If less than a majority of the qualified 1277
voters of the owner who vote on the proposition at such election 1278
vote in favor of the owner proceeding with the process of seeking 1279
proposals for the sale or lease with an option to sell the 1280
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hospital, then the owner is not authorized to sell or lease the 1281
hospital. If a majority of the qualified voters of the owner who 1282
vote on the proposition at such election vote in favor of the 1283
owner proceeding with the process of seeking proposals for the 1284
sale or lease with an option to sell the hospital, then the owner 1285
may seek proposals for the sale or lease of the hospital. If no 1286
such petition is timely filed with the clerk of the owner, then 1287
the owner may proceed with the process of seeking proposals for 1288
the sale or lease with an option to sell the hospital. The owner 1289
shall adopt a resolution describing its intention to sell or lease 1290
with an option to sell the hospital, which shall include the 1291
owner's reasons why such a sale or lease is in the best interests 1292
of the persons living in the area served by the facility to be 1293
sold or leased. The owner then shall publish a copy of the 1294
resolution; the requirements for proposals for the sale or lease 1295
with an option to sell the hospital, which shall state clearly the 1296
minimum required terms of all respondents and the evaluation 1297
process that will be used when the owner reviews the proposals; 1298
and the date proposed by the owner for the sale or lease with an 1299
option to sell the hospital. Such publication shall be made once 1300
a week for at least three (3) consecutive weeks in at least one 1301
(1) newspaper published in the county or city, as the case may be, 1302
or if none be so published, in a newspaper having a general 1303
circulation therein. The first publication of the notice shall be 1304
made not less than twenty-one (21) days before the date proposed 1305
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for the sale or lease with an option to sell the hospital and the 1306
last publication shall be made not more than seven (7) days before 1307
that date. After receiving proposals, such sale or lease shall be 1308
made to the respondent submitting the highest and best proposal. 1309
In no case may the owner deviate from the process provided for in 1310
the request for proposals. 1311
(11) A lessee of a community hospital, under a lease entered 1312
into under the authority of Section 41-13-15, in effect prior to 1313
July 15, 1993, or an affiliate thereof, may extend or renew such 1314
lease whether or not an option to renew or extend the lease is 1315
contained in the lease, for a term not to exceed fifteen (15) 1316
years, conditioned upon (a) the leased facility continuing to 1317
operate in a manner safeguarding community health interest; (b) 1318
proceeds from the lease being first applied against such bonds, 1319
notes or other evidence of indebtedness as are issued pursuant to 1320
Section 41-13-19; (c) surplus proceeds from the lease being used 1321
for health related purposes; (d) subject to the express approval 1322
of the board of trustees of the community hospital; and (e) 1323
subject to the express approval of the owner. If no board of 1324
trustees is then existing, the owner shall have the right to enter 1325
into a lease upon such terms and conditions as agreed upon by the 1326
parties. Any lease entered into under this subsection (11) may 1327
contain an option to purchase the hospital, on such terms as the 1328
parties shall agree. 1329
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(12) All community hospitals that become participants in a 1330
regional health authority under Sections 2 through 20 of this act 1331
shall be governed by Sections 2 through 20 of this act, and shall 1332
no longer be governed by or subject to Sections 41-13-10 through 1333
41-13-53 or Sections 41-13-101 through 41-13-107, except as 1334
amended by or otherwise provided in Sections 2 through 20 of this 1335
act. 1336
(13) The board of a regional health authority under Sections 1337
2 through 20 of this act shall have and assume the powers, 1338
authority, rights, privileges and immunities conferred on the 1339
owners of community hospitals, respectively, as set forth in 1340
Sections 41-13-10 through 41-13-53 and Sections 41-13-101 through 1341
41-13-107, except as amended by or otherwise provided in Sections 1342
2 through 20 of this act. 1343
(14) A regional health authority under Sections 2 through 20 1344
of this act shall not be subject to the provisions of subsections 1345
(7) though (11) of this section. 1346
SECTION 25. Section 41-13-19, Mississippi Code of 1972, is 1347
amended as follows: 1348
41-13-19. Such counties, cities and towns, supervisors 1349
districts, judicial districts and election districts of a county 1350
are authorized and empowered to make appropriations of the funds 1351
thereof for the purpose of Sections 41-13-15 through 41-13-51, and 1352
are * * * authorized and empowered to issue and sell the bonds, 1353
notes or other evidences of indebtedness thereof, for the purpose 1354
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Greenwood hospital until after May 1, 2026.
of providing funds with which to acquire real estate for and to 1355
establish, erect, build, construct, remodel, add to, acquire, 1356
equip and furnish community hospitals, nurses' homes, health 1357
centers, health departments, diagnostic or treatment centers, 1358
rehabilitation facilities, nursing homes and related facilities 1359
under the provisions of such sections. Such bonds, notes or other 1360
evidences of indebtedness secured by a pledge of the full faith, 1361
credit, and resources of the issuing entity shall not be issued in 1362
an amount which will exceed the limit of indebtedness of the 1363
county, city, town, supervisors district, judicial district or 1364
election district issuing the same, as such limit is prescribed by 1365
Sections 19-9-1 et seq., and Sections 21-33-301 et seq. * * * 1366
Before issuing any such bonds, notes or other evidences of 1367
indebtedness secured by a pledge of the full faith, credit, and 1368
resources of the issuing entity, the board of supervisors, acting 1369
for a county or supervisors district, judicial district or 1370
election district thereof, or the mayor and board of aldermen, or 1371
city council, or other like governing body, acting for a city or 1372
town, shall adopt a resolution declaring its intention to issue 1373
the same, stating the amount and purposes thereof, whether such 1374
hospital, nurses' home, health center, health department, 1375
diagnostic or treatment center, rehabilitation facility, nursing 1376
home or related facilities are to be erected, acquired, remodeled, 1377
equipped, furnished, maintained and operated by such county, city, 1378
town or supervisors district separately, or jointly with one or 1379
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more other counties, cities, towns, supervisors districts, 1380
judicial districts or election districts of a county, and fixing 1381
the date upon which further action will be taken to provide for 1382
the issuance of such bonds, notes or other evidences of 1383
indebtedness. The full text of such resolution shall be published 1384
once a week for at least three (3) consecutive weeks in at least 1385
one (1) newspaper published in the county or city, as the case may 1386
be, or if none be so published, in a newspaper having a general 1387
circulation therein. The first publication of such notice shall 1388
be made not less than twenty-one (21) days prior to the date fixed 1389
in such resolution, as aforesaid, and the last publication shall 1390
be made not more than seven (7) days prior to such date. If, on 1391
or prior to the date fixed in such resolution, as aforesaid, there 1392
shall be filed with the clerk of the body by which such resolution 1393
was adopted a petition signed by twenty percent (20%) or fifteen 1394
hundred (1500), whichever is less, of the qualified voters of such 1395
county, city, town, supervisors district, judicial district or 1396
election district, as the case may be, requesting that an election 1397
be called and held on the question of the issuance of such bonds, 1398
notes or other evidences of indebtedness, then it shall be the 1399
duty of the board of supervisors, board of aldermen, city council, 1400
or other governing body, as the case may be, to call and provide 1401
for the holding of an election as petitioned for. In such case no 1402
such bonds, notes or other evidences of indebtedness secured by a 1403
pledge of the full faith, credit, and resources of the issuing 1404
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entity shall be issued unless authorized by the affirmative vote 1405
of a majority of the qualified voters of such county, city, town, 1406
supervisors district, judicial district or election district, as 1407
the case may be, who vote on the proposition at such election. 1408
Notice of such election shall be given by publication in like 1409
manner as hereinabove provided for the publication of the initial 1410
resolution. Such election shall be conducted and the return 1411
thereof made, canvassed and declared as nearly as may be in like 1412
manner as is now or may hereafter be provided by law in the case 1413
of general elections in such county, city, town, supervisors 1414
district, judicial district or election district. 1415
In the discretion of the board of supervisors, board of 1416
aldermen, city council, or other governing body, as the case may 1417
be, and after adoption of a resolution declaring its intention to 1418
issue such bonds, notes or other evidences of indebtedness secured 1419
by a pledge of the full faith, credit, and resources of the 1420
issuing entity, an election on the question of the issuance of 1421
such bonds, notes or other evidences of indebtedness may be called 1422
and held as hereinabove provided without the necessity of 1423
publishing * * * the resolution and whether or not a protest to 1424
the issuance be filed with the clerk of the governing body. In 1425
the event that the question of the issuance of such bonds, notes 1426
or other evidences of indebtedness secured by a pledge of the full 1427
faith, credit, and resources of the issuing entity be not 1428
authorized at such election, such question shall not again be 1429
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submitted to a vote until the expiration of a period of six (6) 1430
months from and after the date of such election. 1431
In the event of any joint operation or proposed joint 1432
operation as provided by Section 41-13-15, there shall be separate 1433
bond issues, and the board or boards of supervisors acting for a 1434
county, supervisors district, judicial district or election 1435
district, the governing bodies of the municipality or 1436
municipalities, as the case may be, shall each issue the bonds, 1437
notes, or other evidences of indebtedness of the county, town, 1438
city, supervisors district, judicial district or election 1439
district, or districts, in such amounts as having been agreed upon 1440
by the respective boards of supervisors and governing bodies of 1441
the towns or cities, and in so doing follow and comply with the 1442
provisions of Sections 41-13-19 through 41-13-23. 1443
The board of a regional health authority under Sections 2 1444
through 20 of this act is authorized and empowered to make 1445
appropriations of funds and to issue and sell bonds, notes or 1446
other evidences of indebtedness thereof, for the benefit of the 1447
authority, in the same manner as, and subject to all duties, 1448
obligations and provisions set forth in Sections 41-13-19 through 1449
41-13-25. 1450
SECTION 26. Section 41-13-35, Mississippi Code of 1972, is 1451
amended as follows: 1452
41-13-35. (1) The board of trustees of any community 1453
hospital shall have full authority to appoint an administrator, 1454
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who shall not be a member of the board of trustees, and to 1455
delegate reasonable authority to such administrator for the 1456
operation and maintenance of such hospital and all property and 1457
facilities otherwise appertaining thereto. 1458
(2) The board of trustees shall have full authority to 1459
select from its members, officers and committees and, by 1460
resolution or through the board bylaws, to delegate to such 1461
officers and committees reasonable authority to carry out and 1462
enforce the powers and duties of the board of trustees during the 1463
interim periods between regular meetings of the board of trustees; 1464
provided, however, that any such action taken by an officer or 1465
committee shall be subject to review by the board, and actions may 1466
be withdrawn or nullified at the next subsequent meeting of the 1467
board of trustees if the action is in excess of delegated 1468
authority. 1469
(3) The board of trustees shall be responsible for governing 1470
the community hospital under its control and shall make and 1471
enforce staff and hospital bylaws and/or rules and regulations 1472
necessary for the administration, government, maintenance and/or 1473
expansion of such hospitals. The board of trustees shall keep 1474
minutes of its official business and shall comply with Section 1475
41-9-68. 1476
(4) The decisions of the board of trustees of the community 1477
hospital shall be valid and binding unless expressly prohibited by 1478
applicable statutory or constitutional provisions. 1479
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(5) The powers and duties of the board of trustees shall 1480
specifically include, but not be limited to, the following: 1481
(a) To deposit and invest funds of the community 1482
hospital in accordance with Section 27-105-365; 1483
(b) To establish such equitable wage and salary 1484
programs and other employment benefits as may be deemed expedient 1485
or proper, and in so doing, to expend reasonable funds for such 1486
employee salary and benefits. Allowable employee programs shall 1487
specifically include, but not be limited to, medical benefit, 1488
life, accidental death and dismemberment, disability, retirement 1489
and other employee coverage plans. The hospital may offer and 1490
fund such programs directly or by contract with any third party 1491
and shall be authorized to take all actions necessary to 1492
implement, administer and operate such plans, including payroll 1493
deductions for such plans; 1494
(c) To authorize employees to attend and to pay actual 1495
expenses incurred by employees while engaged in hospital business 1496
or in attending recognized educational or professional meetings; 1497
(d) To enter into loan or scholarship agreements with 1498
employees or students to provide educational assistance where such 1499
student or employee agrees to work for a stipulated period of time 1500
for the hospital; 1501
(e) To devise and implement employee incentive 1502
programs; 1503
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(f) To recruit and financially assist physicians and 1504
other health care practitioners in establishing, or relocating 1505
practices within the service area of the community hospital 1506
including, without limitation, direct and indirect financial 1507
assistance, loan agreements, agreements guaranteeing minimum 1508
incomes for a stipulated period from opening of the practice and 1509
providing free office space or reduced rental rates for office 1510
space where such recruitment would directly benefit the community 1511
hospital and/or the health and welfare of the citizens of the 1512
service area; 1513
(g) To contract by way of lease, lease-purchase or 1514
otherwise, with any agency, department or other office of 1515
government or any individual, partnership, corporation, owner, 1516
other board of trustees, or other health care facility, for the 1517
providing of property, equipment or services by or to the 1518
community hospital or other entity or regarding any facet of the 1519
construction, management, funding or operation of the community 1520
hospital or any division or department thereof, or any related 1521
activity, including, without limitation, shared management 1522
expertise or employee insurance and retirement programs, and to 1523
terminate those contracts when deemed in the best interests of the 1524
community hospital; 1525
(h) To file suit on behalf of the community hospital to 1526
enforce any right or claims accruing to the hospital and to defend 1527
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and/or settle claims against the community hospital and/or its 1528
board of trustees; 1529
(i) To sell or otherwise dispose of any chattel 1530
property of the community hospital by any method deemed 1531
appropriate by the board where such disposition is consistent with 1532
the hospital purposes or where such property is deemed by the 1533
board to be surplus or otherwise unneeded; 1534
(j) To let contracts for the construction, remodeling, 1535
expansion or acquisition, by lease or purchase, of hospital or 1536
health care facilities, including real property, within the 1537
service area for community hospital purposes where such may be 1538
done with operational funds without encumbrancing the general 1539
funds of the county or municipality, provided that any contract 1540
for the purchase or lease of real property must have the prior 1541
approval of the owner; 1542
(k) To borrow money and enter other financing 1543
arrangements for community hospital and related purposes and to 1544
grant security interests in hospital equipment and other hospital 1545
assets and to pledge a percentage of hospital revenues as security 1546
for such financings where needed; provided that the owner shall 1547
specify by resolution the maximum borrowing authority and maximum 1548
percent of revenue that may be pledged by the board of trustees 1549
during any given fiscal year; 1550
(l) To expend hospital funds for public relations or 1551
advertising programs; 1552
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(m) To offer the following inpatient and outpatient 1553
services, after complying with applicable health planning, 1554
licensure statutes and regulations, whether or not heretofore 1555
offered by such hospital or other similar hospitals in this state 1556
and whether or not heretofore authorized to be offered, long-term 1557
care, extended care, home care, after-hours clinic services, 1558
ambulatory surgical clinic services, preventative health care 1559
services including wellness services, health education, 1560
rehabilitation and diagnostic and treatment services; to promote, 1561
develop, operate and maintain a center providing care or 1562
residential facilities for the aged, convalescent or handicapped; 1563
and to promote, develop and institute any other services having an 1564
appropriate place in the operation of a hospital offering complete 1565
community health care; 1566
(n) To promote, develop, acquire, operate and maintain 1567
on a nonprofit basis, or on a profit basis if the community 1568
hospital's share of profits is used solely for community hospital 1569
and related purposes in accordance with this chapter, either 1570
separately or jointly with one or more other hospitals or 1571
health-related organizations, facilities and equipment for 1572
providing goods, services and programs for hospitals, other health 1573
care providers, and other persons or entities in need of such 1574
goods, services and programs and, in doing so, to provide for 1575
contracts of employment or contracts for services and ownership of 1576
property on terms that will protect the public interest; 1577
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(o) To establish and operate medical offices, child 1578
care centers, wellness or fitness centers and other facilities and 1579
programs which the board determines are appropriate in the 1580
operation of a community hospital for the benefit of its 1581
employees, personnel and/or medical staff which shall be operated 1582
as an integral part of the hospital and which may, in the 1583
direction of the board of trustees, be offered to the general 1584
public. If such programs are not established in existing 1585
facilities or constructed on real estate previously acquired by 1586
the owners, the board of trustees shall also have authority to 1587
acquire, by lease or purchase, such facilities and real property 1588
within the service area, whether or not adjacent to existing 1589
facilities, provided that any contract for the purchase of real 1590
property shall be ratified by the owner. The trustees shall lease 1591
any such medical offices to members of the medical staff at rates 1592
deemed appropriate and may, in its discretion, establish rates to 1593
be paid for the use of other facilities or programs by its 1594
employees or personnel or members of the public whom the trustees 1595
may determine may properly use such other facilities or programs; 1596
(p) Provide, at its discretion, ambulance service 1597
and/or to contract with any third party, public or private, 1598
for * * * providing * * * such service; 1599
(q) Establish a fair and equitable system for the 1600
billing of patients for care or users of services received through 1601
the community hospital, which in the exercise of the board of 1602
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trustees' prudent fiscal discretion, may allow for rates to be 1603
classified according to the potential usage by an identified group 1604
or groups of patients of the community hospital's services and may 1605
allow for standard discounts where the discount is designed to 1606
reduce the operating costs or increase the revenues of the 1607
community hospital. Such billing system may also allow for the 1608
payment of charges by means of a credit card or similar device and 1609
allow for payment of administrative fees as may be regularly 1610
imposed by a banking institution or other credit service 1611
organization for the use of such cards; 1612
(r) To establish as an organizational part of the 1613
hospital or to aid in establishing as a separate entity from the 1614
hospital, hospital auxiliaries designed to aid the hospital, its 1615
patients, and/or families and visitors of patients, and when the 1616
auxiliary is established as a separate entity from the hospital, 1617
the board of trustees may cooperate with the auxiliary in its 1618
operations as the board of trustees deems appropriate; 1619
(s) To make any agreements or contracts with the 1620
federal government or any agency thereof, the State of Mississippi 1621
or any agency thereof, and any county, city, town, supervisors 1622
district or election district within this state, jointly or 1623
separately, for the maintenance of charity facilities; 1624
(t) To acquire hospitals, health care facilities and 1625
other health care-related operations and assets, through direct 1626
purchase, merger, consolidation, lease or other means; 1627
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(u) To enter into joint ventures, joint-operating 1628
agreements or similar arrangements with other public or private 1629
health care-related organizations, or with for-profit or nonprofit 1630
corporations, for-profit or nonprofit limited liability companies 1631
or other similar organizations, either directly or through a 1632
nonprofit corporation formed or owned by the community hospital, 1633
for the joint operation of all or part of the community hospital, 1634
or the joint operation of any health care facilities or health 1635
care services, and in doing so, to convey the community hospital's 1636
assets, service lines or facilities to the joint venture or to any 1637
other organization or entity for fair market value, and to provide 1638
for contracts of employment or contracts for services and 1639
ownership of property that will protect the public interest; 1640
(v) To form, establish, fund and operate nonprofit 1641
corporations, nonprofit limited liability companies, 1642
state-sponsored entities or other similar organizations, either 1643
directly or through a nonprofit corporation formed by the 1644
community hospital, which are jointly owned with other public or 1645
private hospitals, for-profit or nonprofit corporations, or other 1646
health care-related organizations, for the purpose of conducting 1647
activities within or outside of the community hospital's service 1648
area for the benefit of the community hospital, including, but not 1649
limited to, joint hospital acquisitions, group purchasing, 1650
clinically integrated networks, payor contracting, and joint 1651
requests for federal and state grants and funding; 1652
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(w) To make capital contributions, loans, debt or 1653
equity financing to or for any joint venture or similar 1654
arrangement in which the community hospital, or any nonprofit 1655
corporation formed, leased or owned by the community hospital, has 1656
or acquires an ownership interest, and to guarantee loans and any 1657
other obligations for such purposes; 1658
(x) To establish arrangements for the community 1659
hospital to participate in financial integration and/or clinical 1660
integration or clinically integrated networks with a joint 1661
venture, with other public or private or nonprofit health-related 1662
organizations, or through a joint-operating agreement; 1663
(y) To have an ownership interest in, make capital 1664
contributions to, and assume financial risk under, accountable 1665
care organizations or similar organizations; 1666
(z) To enter into any contract for a term of any 1667
length, regardless of whether the length or term of the contract 1668
exceeds the term of the board of trustees of the community 1669
hospital; 1670
(aa) To elect some, any or all of the members of the 1671
board of directors of any nonprofit corporation of which the 1672
community hospital is a member; 1673
(bb) To create, establish, acquire, operate or support 1674
subsidiaries and affiliates, either for-profit or nonprofit or 1675
other similar entity, to assist the community hospital in 1676
fulfilling its purposes; 1677
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(cc) To create, establish or support nonaffiliated 1678
for-profit or nonprofit corporations or other similar lawful 1679
business organizations that operate and have as their purposes the 1680
furtherance of the community hospital's purposes; 1681
(dd) Without limiting the generality of any provisions 1682
of this section, to accomplish and facilitate the creation, 1683
establishment, acquisition, operation or support of any such 1684
subsidiary, affiliate, nonaffiliated corporation or other lawful 1685
business organization, by means of loans of funds, acquisition or 1686
transfer of assets, leases of real or personal property, gifts and 1687
grants of funds or guarantees of indebtedness of such 1688
subsidiaries, affiliates and nonaffiliated corporations; 1689
(ee) To exercise all powers granted under this section 1690
in such a manner as the community hospital, through its board of 1691
trustees, may determine to be consistent with the purposes of this 1692
chapter, including the state action immunity provided by this 1693
section from state and federal antitrust laws to the fullest 1694
extent possible, notwithstanding that as a consequence of such 1695
exercise of such powers it engages in activities that may be 1696
deemed "anticompetitive" or which displace competition within the 1697
meaning or contemplation of the antitrust laws of this state or of 1698
the United States; and 1699
(ff) The board of trustees shall not sell, purchase, 1700
convey, lease, or enter into agreements that have the effect of 1701
selling, purchasing, conveying, or leasing any real property or 1702
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enter into management agreements, merger agreements, joint 1703
ventures, joint-operating agreements or similar arrangements that 1704
transfer control of any real property or the operations of a 1705
community hospital described in this subsection without the prior 1706
approval of the owners of the real property. 1707
(6) No board of trustees of any community hospital may 1708
accept any grant of money or other thing of value from any 1709
not-for-profit or for-profit organization established for the 1710
purpose of supporting health care in the area served by the 1711
facility unless two-thirds (2/3) of the trustees vote to accept 1712
the grant. 1713
(7) No board of trustees, individual trustee or any other 1714
person who is an agent or servant of the trustees of any community 1715
hospital shall have any personal financial interest in any 1716
not-for-profit or for-profit organization which, regardless of its 1717
stated purpose of incorporation, provides assistance in the form 1718
of grants of money or property to community hospitals or provides 1719
services to community hospitals in the form of performance of 1720
functions normally associated with the operations of a hospital. 1721
(8) The Legislature finds and declares as follows: 1722
(a) The needs of the residents of Mississippi can best 1723
be served by community hospitals having the legal, financial and 1724
operational flexibility to take full advantage of opportunities 1725
and challenges presented by the evolving health care environment 1726
and to take whatever actions are necessary to enable the community 1727
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hospitals' continuation as health care systems that provide the 1728
finest possible quality of care consistent with reasonable costs. 1729
(b) In this environment, the community hospitals must 1730
have the ability to respond to changing conditions by having the 1731
power to develop efficient and cost-effective methods and 1732
structures to provide for health care needs, while maintaining a 1733
public mission and character. In addition, community hospitals in 1734
Mississippi are political subdivisions of the state. Accordingly, 1735
the Legislature finds that there is a compelling interest in 1736
establishing a structure and process for a community hospital to 1737
adapt to this dynamic environment, to operate efficiently, to 1738
offer competitive health care services, to respond more 1739
effectively to new developments and regulatory changes in the 1740
health care area, and to continue to serve and promote the health, 1741
wellness and welfare of the citizens of Mississippi. The 1742
acquisition, operation and financing of hospitals and other health 1743
care facilities by the community hospitals are declared to be for 1744
a public and governmental purpose and a matter of public 1745
necessity. 1746
(c) The geographic areas served by community hospitals 1747
include rural populations and other groups that experience 1748
significant health disparities. Health disparities are 1749
differences in health status when compared to the population 1750
overall, often characterized by indicators such as higher 1751
incidence of disease and/or disability, increased mortality rates, 1752
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and lower life expectancies. Rural risk factors for health 1753
disparities include geographic isolation, lower socioeconomic 1754
status, higher rates of health risk behaviors and limited access 1755
to health care specialists and subspecialists. As a result of 1756
these health disparities, the residents of areas served by 1757
community hospitals have high rates of mortality and morbidity, 1758
heart disease, cancer, diabetes and other illnesses. The areas 1759
also include a high percentage of uninsured individuals and 1760
Medicaid patients, which are medically underserved groups. 1761
Community hospitals have demonstrated their ability to provide 1762
high-quality health care and to improve health conditions and 1763
outcomes as well as access to care. This section will 1764
significantly strengthen the ability of community hospitals to 1765
serve the health care needs of the residents of their service 1766
areas. 1767
(d) The community hospitals' investment of significant 1768
public assets and their efforts to provide high quality health 1769
care services to medically underserved populations are jeopardized 1770
by potential limits on the ability of community hospitals to 1771
collaborate and consolidate with other public, private, for-profit 1772
and nonprofit health care facilities and providers. The 1773
Legislature expressly finds that the benefits of collaboration and 1774
consolidation by the community hospitals outweigh any adverse 1775
impact on competition. The benefits of the community hospitals' 1776
efforts to collaborate and consolidate include, but are not 1777
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limited to, preserving and expanding needed health care services 1778
in its service area; consolidating unneeded or duplicative health 1779
care services; enhancing the quality of, and expanding access to, 1780
health care delivered to medically underserved and rural 1781
populations; and lowering costs and improving the efficiency of 1782
the health care services it delivers. Based on the findings 1783
contained in this section, the Legislature affirmatively expresses 1784
a policy to allow community hospitals to consolidate with other 1785
public, private, for-profit or nonprofit hospitals, health care 1786
facilities and providers and to engage in collaborative activities 1787
consistent with their health care purposes, notwithstanding that 1788
those consolidations and collaborations may have the effect of 1789
displacing competition in the provision of hospital or other 1790
health care-related services. In engaging in such consolidations 1791
and collaborations with other public, private, for-profit or 1792
nonprofit hospitals, health care facilities and providers, the 1793
community hospital shall be considered to be acting pursuant to 1794
clearly articulated state policy as established in this section 1795
and shall not be subject to federal or state antitrust laws while 1796
so acting. With respect to the consolidations, collaborative 1797
activities and other activities contemplated in this section, the 1798
community hospital and the public, private, for-profit or 1799
nonprofit entities with which it consolidates, collaborates, or 1800
enters into any of the transactions set forth in this section, 1801
shall be immune from liability under the federal and state 1802
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ST: Delta Regional Health Authority; create &
prohibit DOM from collecting monies owed from a
Greenwood hospital until after May 1, 2026.
antitrust laws and those activities are provided with state action 1803
immunity from federal and state antitrust laws to the fullest 1804
extent possible. 1805
(9) The board of a regional health authority under Sections 1806
2 through 20 of this act shall have and assume the powers, 1807
authority, rights, privileges and immunities conferred on the 1808
boards of trustees of community hospitals, respectively, as set 1809
forth in Sections 41-13-10 through 41-13-53 and Sections 41-13-101 1810
through 41-13-107, except as amended by or otherwise provided in 1811
Sections 2 through 20 of this act. 1812
SECTION 27. Section 41-13-47, Mississippi Code of 1972, is 1813
amended as follows: 1814
41-13-47. (1) On or before the first Monday in September of 1815
each year, the * * * board of trustees shall make, enter on its 1816
minutes and file with the owner or owners, separately or jointly 1817
interested in * * * the hospital, a proposed budget based on 1818
anticipated income and expenditures for the ensuing fiscal year. 1819
Such budget, as submitted or amended, shall be approved by 1820
the * * * owner or owners, as the case may be, which approval 1821
shall be evidenced by a proper order recorded upon the minutes of 1822
each such owner. 1823
(2) On or before the first Monday in March of each 1824
year, * * * the board of trustees shall also make, enter on its 1825
minutes and file with such owner or owners a full fiscal year 1826
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ST: Delta Regional Health Authority; create &
prohibit DOM from collecting monies owed from a
Greenwood hospital until after May 1, 2026.
report which shall contain a complete and correct accounting of 1827
all funds received and expended for all hospital purposes. 1828
(3) The board of a regional health authority under Sections 1829
2 through 20 of this act shall not be required to (a) submit to 1830
any owner a proposed budget for the ensuing fiscal year; (b) 1831
obtain the approval of any budget by any owner; or (c) file with 1832
any owner a full fiscal year report. 1833
SECTION 28. Section 41-13-101, Mississippi Code of 1972, is 1834
amended as follows: 1835
41-13-101. (1) There is * * * authorized the establishment, 1836
maintenance, administration and operation of any trust established 1837
by agreement of any hospitals or other health-care units licensed 1838
as such by the State of Mississippi, including, without 1839
limitation, community hospitals established under this chapter 1840
(hereinafter referred to as "hospitals") as grantors, with such 1841
hospitals as beneficiaries, for the purpose of insuring against 1842
general public liability claims based upon acts or omissions of 1843
such hospitals, including, without limitation, claims based upon 1844
malpractice. Such hospitals may, by trust agreement among 1845
themselves and a trustee or trustees of their selection, specify 1846
the terms, conditions and provisions of such a trust. 1847
(2) The board of a regional health authority under Sections 1848
2 through 20 of this act is authorized to establish, maintain, 1849
administer and operate any trust as described in this section and, 1850
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PAGE 75
in such event, shall be subject to the terms, provisions and 1851
requirements of Sections 41-13-101 through 41-13-107. 1852
SECTION 29. This act shall take effect and be in force from 1853
and after its passage, and shall stand repealed on the day before 1854
its passage. 1855