§ 16-22-3-17 — Disposition and encumbrance of real and personal property; immunity from liability

(a) The governing board may mortgage all
or part of an interest in real or personal property owned by the hospital
and may enter into a sale and leaseback of hospital property on terms
and conditions acceptable to the board.
(b) The following property may be disposed of on terms and
conditions acceptable to the board:
(1) Real or personal property subject to a mortgage or sale and
leaseback arrangement.
(2) Real or personal property in which the hospital has an
ownership interest as a participant in an organization or activity
described in section 1(b) of this chapter.
(3) An arrangement in which at least two (2) hospitals participate
for the provision of any hospital or related services, including
participation or ownership as a tenant in common with other
hospitals.
(c) Except as provided in subsection (b), real or personal property
or an interest in real or personal property owned by the hospital may be
disposed of as follows:
(1) Personal property:
(A) that has limited or no use to the hospital; and
(B) that:
(i) has value not exceeding thirty thousand dollars ($30,000);
or
(ii) is traded upon purchase of other personal property;
may be disposed of without the necessity of advertising,
auctioning, or requesting bids.
(2) Real property that the board considers no longer necessary for
hospital purposes shall be sold after the following occur:
(A) The property is appraised by three (3) disinterested owners
of taxable real property of the county.
(B) The board publishes notice of the sale one (1) time at least
seven (7) days before the date of the sale.
(C) The sale is approved by the commissioners.
The board shall determine the time, terms, and conditions of the
sale of property.
(3) Personal property other than property described in subdivision
(1) shall be sold at public auction. The board shall publish notice
of the sale one (1) time at least seven (7) days before the date of
the sale. If sealed bids are solicited in the published notice of the
sale, the bids must be opened in public on the date and time of the
sale to satisfy the public auction requirement.
Upon the sale of real property under this subsection and the payment
of the purchase price, the board and the commissioners shall execute
a deed of conveyance to the purchaser. The proceeds of all sales are a
part of the hospital funds to be held and used for the use and benefit of
the hospital.
(d) If a trust (as defined in IC 30-4-1-1(a)) submits a bid in a sale or
lease conducted under subsection (b), (c), or (e), the bid must identify
each:
(1) beneficiary of the trust; and
(2) settlor empowered to revoke or modify the trust.
(e) If it is determined by the board, the county executive, and the
county fiscal body, by joint resolution, that:
(1) the hospital should cease doing business as a county hospital;
(2) the hospital should be terminated and dissolved; and
(3) the entire hospital building or buildings should be sold or
leased to a for-profit corporation, partnership, or entity;
the proposed sale or lease shall be considered publicly, and the board,
the county executive, and the county fiscal body shall follow the
procedures of IC 16-22-6-18 concerning notice and hearing on the
terms and provisions of the sale or lease. The terms and provisions of
the sale or lease shall be determined by the board, the county executive,
and the county fiscal body and shall be presented at a hearing as
required by IC 16-22-6-18.
(f) An individual who is a:
(1) board member in the member's capacity as a board member;
or
(2) member of:
(A) the county executive; or
(B) the county fiscal body;
is immune from potential or actual liability attributable to the
individual with respect to a sale or lease under subsection (e).
(g) In the event of a sale or lease under this section, the county is not
liable for:
(1) any liabilities of the hospital that:
(A) were incurred on or before; or
(B) are incurred at any time after;
the sale or lease date; or
(2) any future liabilities incurred by the successor entity;
unless otherwise agreed to by the county at the time of the sale or lease
in the sale or lease document. Any liabilities described in this
subsection are the responsibility of the purchasing or leasing entity,
unless agreed to otherwise in the sale or lease document.
(h) After the hearing on the proposed sale or lease, if it is
determined by the board, the county executive, and the county fiscal
body that the sale or lease should proceed, the hospital building or
buildings shall be sold or leased in accordance with proposed terms and
provisions.
(i) The board, the county executive, and the county fiscal body shall
execute:
(1) a deed of conveyance upon payment of the purchase price if
the buildings are sold; or
(2) a lease upon terms the board, the county executive, and the
county fiscal body consider reasonable if the buildings are leased.
(j) The proceeds of the sale or lease of all of the hospital buildings
must first be applied to outstanding indebtedness attributable to the
hospital buildings. The commissioners shall deposit the balance of the
proceeds from the sale or lease and any property in the hospital fund in:
(1) a nonexpendable interest bearing trust fund from which claims
are paid for county hospital claims for the indigent or any other
fund that the county executive and county fiscal body designate;
or
(2) the county general fund.
[Pre-1993 Recodification Citation: 16-12.1-3-15(a), (b), (c),
(d), (e), (f), (g).]

Legislative History

As added by P.L.2-1993, SEC.5. Amended by P.L.35-1997, SEC.7; P.L.231-1999, SEC.13; P.L.80-2011, SEC.8.