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2020 Regular Session
SENATE BILL NO. 518(Substitute of Senate Bill No. 485 by Senator Hewitt)
BY SENATOR HEWITT
LOCAL AGENCIES. Provides relative to the St. Tammany Parish Hospital Service District
No. 2. (gov sig)
1 AN ACT
2 To enact Part VI of Chapter 10 of Title 46 of the Louisiana Revised Statutes of 1950, to be
3 comprised of R.S. 46:1098.1 through 1098.18, relative to the St. Tammany Parish
4 Hospital Service District No. 2; to provide for governance; to provide for the board
5 of commissioners nominating committee and appointing authority; to provide for
6 powers, duties, and responsibilities; to provide for taxing and bonding authority; and
7 to provide for related matters.
8 Be it enacted by the Legislature of Louisiana:
9 Section 1. Part VI of Chapter 10 of Title 46 of the Louisiana Revised Statutes of
10 1950, comprised of 46:1098.1 through 1098.18, is hereby enacted to read as follows:
11 PART VI. ST. TAMMANY PARISH HOSPITAL SERVICE
12 DISTRICT NO. 2
13 §1098.1. St. Tammany Parish Service District No. 2; creation; boundaries;
14 purpose
15 A. There is hereby created a hospital service district in St Tammany
16 Parish, hereafter to be termed the St. Tammany Parish Hospital Service District
17 No. 2, a political subdivision of the state, referred to in this Part as the
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1 "district". The district is hereby granted all of the rights, powers, privileges,
2 and immunities accorded by law and the Constitution of Louisiana to political
3 subdivisions of the state, subject to the limitations provided in this Part.
4 B. The district shall be comprised of all territory within Wards 6, 7, 8,
5 and 9 of St. Tammany Parish and shall own and operate the Slidell Memorial
6 Hospital.
7 C. The district is created for the following purposes:
8 (1) To own and operate health care facilities, including but not limited
9 to hospitals, for the care of persons suffering from illness or disability.
10 (2) To administer other activities related to health care provision or
11 promotion or to the promotion of the financial viability of the district.
12 (3) To promote and conduct scientific research and training related to
13 health care.
14 (4) To participate, so far as circumstances may warrant, in any activity
15 designated and conducted to promote the general health of the community. The
16 district shall cooperate with the parish health department in the detection,
17 prevention, and combating of any illness, mass immunization and screening
18 tests, or public health education that contributes to the best interest of the
19 public.
20 (5) To cooperate with other public and private institutions and agencies
21 engaged in providing health services to the public.
22 D. The district shall constitute a body corporate in law with all the
23 powers of a corporation, shall have perpetual existence, shall have the power
24 and right to incur debts and contract obligations, to sue and be sued, and to do
25 and perform any and all acts in its corporate capacity and its corporate name
26 necessary and proper for the carrying out of the objects and purposes for which
27 the district was created. The hospital service district shall have the right and
28 power of expropriating property for the purpose of acquiring land for any
29 purpose that it may find necessary in the operation of a hospital service district
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1 and may acquire by donation or purchase, any existing hospital facility in the
2 district. It shall also have the power and authority to acquire any and all
3 necessary equipment and buildings for the purpose of performing the objects
4 for which it is formed, and shall own all sites and physical facilities, which are
5 acquired either by donation, purchase, expropriation, exchange, or otherwise,
6 in full ownership. The provisions of this Subsection shall be subject to the
7 limitations of this Part.
8 E. The district shall have an audit and examination of its books and
9 accounts conducted annually by a qualified certified public accountant. The
10 audit shall be filed with the legislative auditor within six months after the close
11 of the period audited. The legislative auditor shall have the authority to
12 prescribe the terms and conditions of the audit conducted by a certified public
13 accountant and to require the district to present the terms and conditions to
14 him for approval prior to the commencement of the audit. The legislative
15 auditor shall have access to the working papers of the accountant during the
16 examination and subsequent to its termination. The legislative auditor shall be
17 authorized to conduct an independent audit and examination of the books and
18 accounts of the district pursuant to R.S. 24:513.
19 F. The district may establish by resolution any health care facility as a
20 profit or nonprofit corporation as defined by law. The district shall have a
21 corporate seal, and copies of all the regulations and copies of proceedings of the
22 board certified by its secretary-treasurer, under its corporate seal, shall be
23 received in all courts as prima facie evidence of the acts and proceedings of the
24 commission.
25 §1098.2. Domicile and membership of the board of commissioners
26 A. The domicile of the board shall be the Slidell Memorial Hospital in
27 Slidell, Louisiana.
28 B. In order to provide for effectuation of the purposes of the district, the
29 district shall be administered and governed by a board of commissioners,
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1 referred to in this Part as the "board", comprised of nine commissioners as
2 follows:
3 (1) Seven members, appointed pursuant to R.S. 46:1098.5, all of whom
4 shall be registered to vote in and shall be residents and domiciliaries of Wards
5 6, 7, 8, or 9 of St. Tammany Parish for not less than two years prior to
6 appointment.
7 (2) Two members shall be appointed by Slidell Memorial Hospital
8 pursuant to R.S. 46:1098.4.
9 §1098.3. Nominating committee
10 A. Commissioners appointed to the board, except those named by the
11 Slidell Memorial Hospital medical staff, shall be chosen by the appointing
12 authority as provided for in R.S. 46:1098.5, from nominations received from the
13 nominating committee composed of nine members as provided in this Section.
14 Members of the permanent nominating committee shall be appointed from
15 entities outlined in this Section and shall submit a copy of their appointments
16 to the state senator in whose district Slidell Memorial Hospital resides. The state
17 senator shall be responsible for ensuring the proper appointment of all
18 members of the nominating committee pursuant to this Section, calling and
19 providing proper notice of all meetings of the nominating committee, and
20 maintaining all appropriate documentation of the nominating committee. The
21 nominating committee shall select annually a chairman to conduct meetings of
22 the committee.
23 B. The nominating committee shall be composed as follows:
24 (1) Three persons, appointed jointly by the mayor and the city council
25 of Slidell, who reside within the city limits of Slidell.
26 (2) Three persons, appointed jointly by the parish president and the
27 parish governing authority of St. Tammany Parish, who reside within the
28 geographical boundaries of the district.
29 (3) Three persons appointed jointly by the legislative delegation
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1 comprised of all state representatives and senators who represent all or part of
2 Wards 6, 7, 8, or 9 of St. Tammany Parish. The legislative delegation shall
3 choose among nominees of the Slidell Memorial Hospital medical staff.
4 C. All members of the nominating committee shall serve terms of three
5 years.
6 D. All members of the nominating committee shall:
7 (1)(a) Seek applications from the community as a whole by widely
8 publicizing the openings on the board of commissioners' website and in the
9 newspaper of public record.
10 (b) Seek applications from a broad section of community organizations
11 and shall obtain nominations from each of Wards 6, 7, 8, and 9 of St. Tammany
12 Parish where feasible.
13 (2) Public interviews of the applicants shall be conducted.
14 (3) The nominating committee shall attempt to identify whether any
15 potential nominee has a conflict of interest that would preclude his or her
16 participation as a member of the board of commissioners under the Louisiana
17 Code of Governmental Ethics.
18 E. The nominating committee should make every reasonable effort to
19 include in its nominations at least one person from each of the following
20 categories:
21 (1) A member of the Louisiana State Bar Association in good standing
22 who has considerable experience or expertise in hospital representation.
23 (2) A certified public accountant authorized to practice in Louisiana with
24 a minimum of five years experience in audit and financial procedures of
25 hospitals.
26 (3) A person with at least a bachelor's degree and five years of financial
27 experience in commercial and bond work.
28 (4) An insurance executive with at least a bachelor's degree and five
29 years experience in the area of group benefits and managed care issues.
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1 (5) A health professional with five years experience in the previous ten
2 years in either a hospital of other direct care setting.
3 (6) A business executive with at least an MBA or equivalent degree and
4 five years of experience in operating a large business corporation or large
5 nonprofit corporation.
6 F. Members of the nominating committee shall not be public officials.
7 G. The nominating committee shall hold interviews in a public forum
8 and as a result of the forum present to the appointing authority, pursuant to this
9 Section, a list of a minimum of two and a maximum of three nominees for each
10 position to be filled.
11 §1098.4. Board nominations by Slidell Memorial Hospital
12 Slidell Memorial Hospital Appointments. The board members from the
13 Slidell Memorial Hospital medical staff shall be nominated and appointed as
14 follows:
15 (1) Two practicing medical staff members of Slidell Memorial Hospital
16 shall be nominated by the medical staff of the hospital. One nominee shall be the
17 current chief of the medical staff or his medical staff designee, and the other
18 shall be a staff member who regularly treats patients at the hospital and who
19 has the majority of his practice at Slidell Memorial Hospital. Both physician
20 nominees shall have long-standing professional ties to Slidell Memorial
21 Hospital. Medical staff nominees are not required to reside within the
22 geographical boundaries of the district.
23 (2) The appointing authority shall appoint as members of the board the
24 two nominees of the medical staff.
25 (3)(a) Notwithstanding any other provision of law to the contrary, a
26 licensed physician who is a member or former member of the board of
27 commissioners elected pursuant to this Subsection, is not prohibited from
28 contracting, subcontracting with another provider who contracts, owning an
29 interest in an entity that contracts, or accepting employment with Slidell
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1 Memorial Hospital, provided that the contract is related to the licensed
2 physician's practice of medicine or expertise as a licensed physician. However,
3 such licensed physician shall recuse himself from participating in any
4 transaction before the board relating to any contracts permitted by this
5 Paragraph and entered into by him, by a provider with which he subcontracts,
6 or by any entity in which he owns an interest.
7 (b) All contracts permitted by this Section, entered into while the
8 physician is a member of the board of commissioners, shall be disclosed to the
9 Louisiana Board of Ethics within thirty days of the execution of the contract.
10 The disclosure shall include the parties to the contract, the purpose of the
11 contract, and the date the contract was executed.
12 §1098.5 Appointing authority
13 A. The members of the board of commissioners shall be appointed in a
14 public forum by the appointing authority from the list of nominees within thirty
15 days of receipt of the nominations pursuant to R.S. 46:1098.3.
16 B. The appointing authority shall be composed of seven members as
17 follows:
18 (1) One appointee of the Slidell city council who resides within the city
19 limits of Slidell.
20 (2) One appointee of the mayor of Slidell who resides within the city
21 limits of Slidell.
22 (3) One appointee of the St. Tammany Parish council who resides within
23 the geographical boundaries of the district.
24 (4) One appointee of the St. Tammany Parish president who resides
25 within the geographical boundaries of the district.
26 (5) One appointee of the governing authority of the town of Pearl River
27 who resides within the corporate limits of Pearl River.
28 (6) Two appointees of the state senator and the state representative in
29 whose district Slidell Memorial Hospital resides.
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1 C. The state senator shall be responsible for ensuring the proper
2 appointment of all members of the nominating committee pursuant to this
3 Section, calling and providing proper notice of all meetings of the nominating
4 committee. and maintaining all appropriate documentation of the nominating
5 committee. The nominating committee shall select annually a chairman to
6 conduct meetings of the committee.
7 D.(1) The appointing authority members who are not elected officials
8 shall serve terms of three years.
9 (2) Elected officials serving on the appointing authority may serve for a
10 term commensurate with their term of office.
11 E. For board vacancies expected due to term limits, the appointing
12 authority shall conduct their meetings and fulfill their duties by December 15
13 of each year in order that each appointee may have six months to observe and
14 orient to the board prior to taking their office on July 1 of the following year.
15 Orienting appointees shall be compensated a per diem rate and reasonable
16 expenses for attending meetings or education sessions of the board prior to
17 taking office.
18 §1098.6 Qualifications of board of commissioners
19 A.(1) No person owning or possessing any property interest in any of the
20 stocks, bonds, or other securities issued by any private hospital located in the
21 same area served by the district, and no person who is a director or other officer
22 of any private hospital shall be eligible for or hold any position on the board of
23 commissioners except those positions to be named by the Slidell Memorial
24 Hospital medical staff.
25 (2) With respect to privileges at any district hospital, such a decision
26 regarding a person owning or possessing any property interest in any of the
27 stocks, bonds, or other securities issued by a private hospital located in the same
28 area served by the St. Tammany Parish Hospital Service District No. 2 is strictly
29 left to the discretion of the board of commissioners. Such an interest shall not
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1 require the suspension of or the rejection of a request for privileges at a service
2 district hospital; however, privileges may be suspended or denied based upon
3 such an ownership interest.
4 (3) For the purposes of this Subsection, the possession or ownership of
5 an interest, stocks, bonds, or other securities by the spouse or minor children
6 of any person shall be deemed to be the possession or interest of such person.
7 B.(1) Members of the board are eligible for reappointment by the
8 appointing authority. Any vacancy on the commission shall be filled for the
9 remaining portion of the term in the same manner as the original appointment.
10 (a) No member of the board, whether appointed by recommendation of
11 the nominating committee or the medical staff, shall serve more than three
12 consecutive terms.
13 (b) An appointee named to fill the term of a member who has left the
14 board and less than two years remain in the term, that appointee's term shall
15 not be considered one of the three consecutive terms to which a member is
16 limited.
17 (c) An appointee named to fill the term of a member who has left the
18 board and more than two years remain in the term, that appointee's term shall
19 be considered one of the three consecutive terms to which a member is limited.
20 (d) All vacancies on the board shall be filled by the appointing authority
21 within sixty days of the vacancy.
22 (2) Notwithstanding any other provision of law to the contrary, any
23 member of the board who is a licensed physician shall not be prohibited from
24 contracting or accepting employment with Slidell Memorial Hospital following
25 expiration of his service on the board of commissioners.
26 C. Any commissioner may be removed by majority vote of the board or
27 by the appointing authority, but only for cause, including misconduct,
28 incompetency, or neglect of duty, and on charges preferred against the member
29 in writing and after public hearing and proof of the sufficiency of such charges.
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1 Any commissioner so removed shall have the right to contest in the Twenty-
2 Second Judicial District Court the sufficiency of the charges and of the evidence
3 tendered in support thereof.
4 §1098.7. Rights, powers, and duties of board of commissioners
5 The district acting by and through its board shall have and exercise all
6 rights, powers, and duties for the carrying out of its objects and purposes
7 including but not limited to the following:
8 (1) To represent the public interest in providing medical care in the
9 parish.
10 (2) To advise the parish governing authority and the directors of health
11 care facilities under its control of problems concerning the operation of district
12 facilities.
13 (3) To make, amend, and repeal and to promulgate and enforce rules,
14 regulations, resolutions, guidelines, and organizational modifications
15 concerning the conduct of health care facilities in order to ensure proper and
16 reliable operation of such facilities.
17 (4) To conduct hearings and rule upon complaints by or against any
18 officer or employee of the district.
19 (5) To review and modify or set aside any action of the officers or
20 employees of the district which the board may determine to be desirable or
21 necessary in the public interest.
22 (6)(a) To select, appoint, and enter into an employment contract with a
23 chief executive officer of the hospital who shall be given full responsibility and
24 authority to manage the hospital in accordance with the policies established by
25 the board.
26 (b) The chief executive officer's employment contract may be for a fixed
27 term.
28 (c) The chief executive officer shall report directly to the board of
29 commissioners.
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1 (7) To contract for the construction of facilities, the provision of services,
2 or in any other manner which will assist the board in providing quality health
3 care for the district.
4 (8) To appoint any standing and special committees as may be necessary
5 to carry out the purposes of the district.
6 (9)(a) To select, appoint and enter into an employment contract with a
7 chief financial officer to oversee the financial matters of the district.
8 (b) The chief financial officer shall report directly to the chief executive
9 officer, but shall maintain a fiduciary duty to the board of commissioners.
10 (10) To approve bylaws for the medical staff and for the board, to
11 suspend the bylaws at any time and for any length of time, and to require the
12 rewriting of all or part of such bylaws.
13 (11) To accept any or all officers elected by the medical staff, or to refuse
14 to accept any or all such officers, and to require the election of new officers.
15 (12)(a) To purchase and acquire lands and to purchase, acquire,
16 construct, and maintain health care facilities, including: hospitals, clinics,
17 nursing homes, offices for health care professionals, laboratories, and any other
18 physical facilities necessary to carry out the purposes of the district.
19 (b) The board shall not relocate the primary health care facilities from
20 the municipal corporate limits of the city presently the domicile of the board of
21 commissioners without the consent of the governing authority of St. Tammany
22 Parish.
23 (13) To employ legal counsel as determined by the board of
24 commissioners.
25 (14) To establish, maintain, and carry on its activities through one or
26 more profit or nonprofit corporations for the benefit of the district.
27 (15) To borrow money and to issue general obligation bonds, revenue
28 bonds, notes, certificates, or other evidences of indebtedness of the district in
29 order to accomplish any of its objects and purposes.
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1 (16) To delegate authority to its officers, appointees, and employees.
2 (17) To do any and all things except as limited by the Louisiana
3 Constitution which are necessary for and to the advantage of health care
4 facilities, including but not limited to the extension of privileges and use of
5 health care facilities to persons residing outside the district.
6 (18) In addition to other benefits, salary, and compensation, to offer
7 assistance through the district to members of the medical staff in order to
8 attract and retain competent staff, including but not limited to the following:
9 (a) The establishment of clinic and group practice.
10 (b) Malpractice insurance coverage under the health care facility's policy
11 of professional liability insurance.
12 (c) Professional fee billing.
13 (d) The opportunity to rent office space in facilities owned and operated
14 by the district.
15 (e) The employment of physicians by contracts for a fixed term.
16 (19)(a) The board may permit by a general or specific grant of authority
17 upon a majority vote of the board of commissioners a health care facility to
18 expend or contract to expend money, or incur liability, including a mortgage on
19 property, or enter into a contract or contracts which by the terms involves the
20 expenditure of money for purposes not provided for in the budget or which are
21 in excess of the amounts appropriated in the resolution of the commission
22 approving the budget for the next fiscal year.
23 (b)The board may upon a majority vote of the board of commissioners
24 expend, or contract to expend money, or incur liability, including a mortgage
25 on property, or enter into a contract or contracts which by the terms involves
26 the expenditure of money for purposes not provided for in the budget or which
27 are in excess of the amounts appropriated in the resolution of the board
28 approving the budget for the fiscal year.
29 (20) To attend and complete all education courses and seminars made
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1 available or assigned to the board by the hospital, including but not limited to
2 state ethics laws, HIPAA, and preventing sexual harassment and fraud and
3 abuse.
4 (21) Notwithstanding any other provisions of law to the contrary, the
5 board may annually appoint a former member of the board to serve as a
6 nonvoting "Commissioner Emeritus" to advise and provide historical
7 perspective to the board when requested by the chairman. Such person shall be
8 paid a per diem equal to that paid to other board members for attendance at the
9 meeting together with reasonable expenses to attend any event attended by the
10 board of commissioners. The "Commissioner Emeritus" may not serve longer
11 than one year.
12 (22) At the beginning of each hospital fiscal year the board shall elect a
13 chairperson, vice chairperson, secretary/treasurer, and other officers deemed
14 necessary, all to serve terms of one year. No chairperson or vice chairperson
15 shall serve more than two consecutive terms as chairperson or vice chairperson.
16 (23) The board shall hold regular meetings at least monthly and as often
17 as necessary for the conduct of its business. Special meetings may be called upon
18 forty-eight hour notice by the chairperson, or in his absence, by the vice
19 chairperson, or upon the written authorization of a majority of the members of
20 the board. Emergency meetings, providing notice of at least twenty-four hours,
21 may be called by the chairperson, or in his absence, by the vice chairperson, or
22 by any three members of the board.
23 (24)(a) Each board member shall receive per diem not to exceed one
24 hundred dollars for each meeting attended. However, except in the case of an
25 emergency, no board member shall receive per diem for more than seven
26 meetings per month. The chairman or other officer of the board may receive
27 per diem for ten meetings per month. In the case of an emergency, the chairman
28 may receive per diem for more than ten meetings per month. Telephone or
29 video conferences for educational or managerial purposes may be considered
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1 by the chairman of the board to be a meeting for which compensation may be
2 paid.
3 (b) Members of the board shall receive no additional compensation for
4 any other services rendered as commissioners.
5 (c) Members of the board, or physician, by reason of his service on the
6 board, shall not receive health insurance as compensation for service on the
7 board.
8 (d) Members of the board may be reimbursed for reasonable expenses,
9 for the board member only, to a professional or educational meeting or seminar,
10 the subject matter of which would be directly beneficial to the service district.
11 Any board member seeking approval of such expenses shall make the request
12 in writing and shall present to the board a written report on the contents of the
13 meeting or seminar within sixty days of returning from the meeting or seminar.
14 (25) Each quarter, at regularly scheduled public meetings of the board,
15 a financial overview of the current financial status of the district shall be
16 presented, taking into consideration both proprietary information and
17 information pertaining to marketing.
18 (26) Each year, the board shall present to the appointing authority in a
19 regularly scheduled open meeting the audited and certified financial statement
20 for the previous fiscal year.
21 §1098.8. Bylaws; compliance
22 The bylaws of the board and of the medical staff shall be made
23 compatible in all respects within the provisions of this Part. Any discrepancy
24 between the bylaws of the medical staff and this Part, or between the bylaws of
25 the board and this Part, shall be resolved in favor of this Part. In no case shall
26 the bylaws of the medial staff prevail against either this Part or the bylaws of
27 the board.
28 §1098.9. Board officers; powers, duties, and responsibilities
29 The duties and responsibilities of the officers of the board of
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1 commissioners shall be as follows:
2 (1) The chairman shall preside over all meetings, decide all questions of
3 procedure, and have all authority generally granted to chairmen and other
4 presiding officers. Except as otherwise provided in this Part, he may vote on any
5 issue before the commission, and he shall vote to break a tie in any vote taken
6 by the commission. Except to break a tie, he shall have no vote in the selection
7 of the vice chairman. The chairman shall appoint all standing committees and
8 their officers not later than September 30, 1984, and annually thereafter, and
9 he shall appoint all other committees and their officers whether or not such
10 committees consist of commission members. The chairman shall have the right
11 and power to interest himself in all affairs of the district and the facilities
12 operated by the district.
13 (2) The vice chairman shall act as chairman in the absence of the
14 chairman.
15 (3) The secretary-treasurer shall issue notices of all regular and special
16 meetings, receive and attend to all correspondence of the commission, have
17 custody of all documents of the board, and otherwise perform such acts as
18 usually pertain to his office.
19 §1098.10. Chief executive officer; appointment, powers, duties, and
20 responsibilities
21 A. The board of commissioners shall select, appoint, and employ a chief
22 executive officer, referred to in this Part as "CEO", who has training and
23 experience in the field of hospital administration and who is familiar with the
24 principles and methods of hospital and institutional care. He shall be a full-time
25 employee of the district and shall receive compensation as fixed by the board.
26 The board may contract with the CEO, or he may serve at its pleasure.
27 B. In addition to the powers, duties, and responsibilities conferred by any
28 other provisions of this Part, the CEO shall have the following powers, duties,
29 and responsibilities:
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1 (1) To attend all meetings of the board.
2 (2) To establish positions of employment and to appoint and employ
3 personnel necessary for the operation of the health care facility or facilities
4 under his jurisdiction; to establish rates of pay and employee benefits; to
5 abolish positions; and to transfer, promote, demote, and otherwise alter the
6 status of employees of the facility or facilities.
7 (3) Within the rules, regulations, guidelines, directives, policies, and
8 procedures set forth by the board, to control and direct all business affairs of
9 the health care facility, including but not limited to the following:
10 (a) Maintaining the accounts of the district.
11 (b) Making necessary purchases of equipment, supplies, and materials.
12 (c) Making major and minor repairs to physical facilities.
13 (d) Negotiating and signing contracts.
14 (4) Within the rules, regulations, guidelines, directives, policies, and
15 procedures set forth by the board, to set and amend rates for all health care
16 services as deemed necessary for the proper fiscal operation of the health care
17 facility.
18 (5) To prepare and publish such reports regarding the work of the health
19 care facility as may be required by law or at the direction of the board.
20 (6) To ensure that the goals, directives, and policies relating to the
21 conduct of the affairs of the health care facility, as established by the board or
22 by state or federal laws, are carried out.
23 (7) To cooperate with the medical staff in the execution of the bylaws and
24 policies which the staff may establish.
25 (8) To prepare an annual budget for approval by the board.
26 (9) To provide for documentation and maintenance of appropriate
27 medical records and reports.
28 (10) To receive, record, and maintain a correct accounting of all gifts,
29 bequests, grants in aid, and other revenues for purposes designated, all subject
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1 to any conditions that may be imposed in any act of donation or any law
2 providing grants in aid or other revenues for such purposes.
3 (11) To perform any other duties and functions which the CEO or the
4 board considers necessary or desirable to carry out the purposes of this Part.
5 (12) To serve as ex officio adviser to all committees of the commission
6 unless specifically excluded from this role by the board or its chairman.
7 §1098.11. Medical staff; appointment; duties, and responsibilities
8 A. The board shall appoint a medical staff to the health care facilities
9 owned or operated by the district. Such appointments may be made after
10 consultation with the physicians who are authorized to practice within the
11 health care facility or facilities.
12 B. The medical staff so appointed shall have the following duties:
13 (1) To provide professional care to the sick and injured.
14 (2) To advise and assist the board and the CEO relative to standards of
15 health care operation and professional problems.
16 (3) To participate in the educational activities of the district.
17 (4) To propose rules and regulations for the conduct of the medical staff
18 for board approval.
19 (5) To elect from its membership a chief of staff, a vice chief of staff, and
20 a secretary-treasurer. If the medical staff of the health care facility is
21 departmentalized, the staff shall also select from its membership the heads of
22 any specialized services of the health care facility. Subsequent to the election,
23 the elected heads of specialized services shall be approved by a committee
24 consisting of the chairman of the board, who shall serve as chairman of the
25 committee, the CEO, and the newly elected chief of staff. If an elected head of
26 a specialized service is not approved by the committee, the committee shall
27 nominate at least two qualified staff members for the position of head of the
28 specialized service, and the staff shall elect one from those nominated.
29 (6) To consult with the board in the appointment of a CEO.
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1 §1098.12. Sale of ownership or control of hospital
2 Notwithstanding any other law to the contrary, the board may sell to any
3 person an ownership interest in the district hospital that results in the acquiring
4 person holding less than fifty percent interest in the ownership or control of the
5 hospital. The provisions of R.S. 33:4341 shall not apply to any sale pursuant to
6 the authority granted in this Section.
7 §1098.13. Tax collection and allocation of proceeds
8 For the purpose of providing revenue to carry out the objects
9 contemplated hereby, the board may levy and collect annually a special tax not
10 to exceed five mills on all property in the district subject to such tax in
11 accordance with Article VI, Section 32 of the Louisiana Constitution, subject to
12 approval by a majority of the electors of the district voting at an election called
13 by the board of commissioners and held for that purpose. The tax shall be
14 collected in the same manner as other special taxes. The avails of any such tax
15 shall be used solely for acquisition, construction, improvement, maintenance,
16 and operation of health care facilities or improvements.
17 §1098.14. Authority to issue bonds; continuation of prior obligations
18 A. The board shall have the power to issue bonds for the purpose of
19 constructing, acquiring, extending, and improving health care facilities of the
20 district pursuant to Article VI, Section 33 of the Louisiana Constitution and
21 other constitutional and statutory authority supplemental thereto. Such bonds
22 may be issued only after authorization by a majority of voters in the district
23 voting at an election called by the board and held for that purpose.
24 B. Bonds or other obligations secured by Slidell Memorial Hospital on
25 August 1, 1984, shall continue to be secured by both the hospital and the district
26 until they are retired.
27 §1098.15. Contracts; cooperation
28 The Slidell Memorial Hospital may contract to receive or offer
29 agreements for materials, services, or supplies pursuant to a shared service or
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1 group purchasing arrangement with other hospitals, either public or private,
2 in accordance with the provisions of R.S. 38:2211 et seq. In addition, Slidell
3 Memorial Hospital and the district shall otherwise cooperate in all respects
4 possible for the best interests of the citizens of St. Tammany Parish.
5 §1098.16. Minority partner
6 Only in the event that Slidell Memorial Hospital should acquire a
7 minority partner with a share of less than fifty percent of the assets of the
8 hospital, shall the board of commissioners be empowered to allow
9 representation of the minority partner on the board.
10 (1) By a two-thirds vote of the board of commissioners, the size of the
11 board may be increased by not more than two members in order to allow for
12 representation of a minority shareholder on the board.
13 (2) Such board members shall be appointed by the minority shareholder
14 to serve initial terms of one year and two years respectively.
15 (3) Subsequently, these appointees of the minority shareholder shall
16 serve full four-year terms.
17 (4) No other restrictions or qualifications shall apply to board members
18 appointed by a minority shareholder, except with regard to term limitations
19 contained herein.
20 §1098.17. Liberal construction
21 This Part, being intended to carry out a function of the state to protect
22 the health and welfare of the inhabitants of the state to be affected thereby, shall
23 be liberally construed by the courts to effect its purposes.
24 §1098.18. Miscellaneous
25 Members or officers of the medical staff, employees or officers of the
26 health care facilities of the district, board members, and persons who occupy
27 management positions, or any other office whatsoever for a facility of the
28 district or for the district may possess a property interest in or own stocks,
29 bonds, or other securities issued by health maintenance organizations and
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1 preferred provider organizations and may refer members of these organizations
2 to the health care facilities of the district.
3 Section 2. The provisions of this Act shall supercede and control any conflicting
4 provisions of any Special Act creating St. Tammany Hospital Service District No. 2,
5 including in particular Act No. 180 of the Regular Session of 1984 Regular Session, as
6 amended by Act 353 of the 1986 Regular Session, Act 999 of the 1991 Regular Session, Act
7 570 of the 1992 Regular Session, Act 440 of the 1997 Regular Session, Acts 562 and 1214
8 of the 2003 Regular Session, Act 682 of the 2004 Regular Session, Act 536 of the 2006
9 Regular Session, Act 178 of the 2007 Regular Session, Act 394 of the 2010 Regular Session,
10 Act 141 of the 2011 Regular Session, Act 703 of the 2012 Regular Session, and Act 221 of
11 the 2018 Regular Session.
12 Section 3. This Act shall become effective upon signature by the governor or, if not
13 signed by the governor, upon expiration of the time for bills to become law without signature
14 by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If
15 vetoed by the governor and subsequently approved by the legislature, this Act shall become
16 effective on the day following such approval.
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by James Benton.
DIGEST
SB 518 Engrossed 2020 Regular Session Hewitt
Present law creates, by special uncodified acts of the legislature, the two hospital service
districts in St. Tammany Parish, termed the St. Tammany Parish Hospital Service District
No. 1 and the St. Tammany Parish Hospital Service District No. 2, as the successors to the
St. Tammany Parish Hospital Service District.
Proposed law incorporates the provisions of the uncodified acts relating to the St. Tammany
Parish Hospital Service District No. 2 in Title 46 of the La. Revised Statutes of 1950.
Present law provides that St. Tammany Parish Hospital Service District No. 1 shall be
comprised of all territory within Wards 1, 2, 3, 4, 5, and 10 of the parish and shall own and
operate the St. Tammany Parish Hospital. St. Tammany Parish Hospital Service District No.
2 shall be comprised of all territory within Wards 6, 7, 8, and 9 of the parish and shall own
and operate the Slidell Memorial Hospital.
Proposed law retains present law.
Present law provides for an advisory board composed of at least one resident of each of
Wards 6, 7, 8, and 9 of St. Tammany parish.
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Proposed law eliminates present law.
Proposed law allows the Board of Commissioners to appoint a former member of the Board
as a Commissioner emeritus who may not serve longer than one year and is a nonvoting
member to provide historical perspective to Board.
Proposed law provides that the nominating committee shall attempt to identify whether any
potential nominee has a conflict of interest that would preclude his or her participation as a
member of the board of commissioners under the Louisiana Code of Governmental Ethics.
Proposed law provides that the nominating committee must make every reasonable effort
to include in its nominations a business executive with at least an MBA or equivalent degree
and five years of experience in operating a large business corporation or large nonprofit
corporation.
Proposed law provides that for board vacancies expected due to term limits, the appointing
authority shall conduct their meetings and fulfill their duties by December 15 of each year
in order that each appointee may have six months to observe and orient to the board prior
to taking their office on July 1 of the following year. Orienting appointees will be
compensated a per diem rate and reasonable expenses for attending meetings or education
sessions of the board prior to taking office.
Proposed law provides that board members must attend and complete all education courses
and seminars made available or assigned to the board by the hospital, including but not
limited to state ethics laws, HIPAA, and preventing sexual harassment and fraud and abuse.
Proposed law provides that notwithstanding any other provisions of law to the contrary, the
board may annually appoint a former member of the board to serve as a nonvoting
"Commissioner Emeritus" to advise and provide historical perspective to the board when
requested by the chairman. Such person will be paid a per diem equal to that paid to other
board members for attendance at the meeting together with reasonable expenses to attend
any event attended by the board of commissioners. The "Commissioner Emeritus" may not
serve longer than one year.
Present law provides that the chairman of the board may receive per diem for ten meetings
per month. In the case of an emergency, the chairman may receive per diem for more than
ten meetings per month.
Proposed law maintains present law and includes other officers. Furthermore, proposed law
provides that telephone or video conferences for educational or managerial purposes may
be considered by the chairman of the board to be a meeting for which compensation may be
paid.
Present law requires the nominating committee to make every reasonable, effort to include
in its nominations at least one person from each of the following categories: a member of
the Louisiana State Bar Association, a certified public accountant, a person with financial
experience in commercial and board work, an insurance executive, and a health professional.
Proposed law retains present law and includes a business executive with at least an MBA or
equivalent degree and five years of experience in operating a large business corporation or
large nonprofit corporation.
Present law provides for the board to appoint and enter into an employment contract with
a chief executive officer of the hospital.
Proposed law retains present law and clarifies that the board shall also select the chief
executive officer.
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Present law proves that the Chief Executive Officer will establish positions of employment
and to appoint and employ personnel necessary for the operation of the health care facility
or facilities under his jurisdiction; to establish rates of pay and employee benefits; to abolish
positions; and to transfer, promote, demote, and otherwise alter the status of employees of
the facility or facilities.
Proposed law retains present law but also adds the establishment of employee benefits to the
list of items to be established by the Chief Executive Officer.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Adds R.S. 46:1098.1-1098.18)
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