Amended by Stats. 1955, Ch. 624.
This article applies only to cities where a municipal hospital has not been established.
Article 7 - Hospitals Managed by Board of Hospital Trustees
California Government Code — §§ 37600-37625
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Sections (48)
Added by Stats. 1949, Ch. 79.
Upon receiving a petition signed by 15 percent of the city electors, the legislative body shall submit to the electors at a general or special election the question whether a municipal hospital shall be established in the city.
Added by Stats. 1949, Ch. 79.
If a majority of the votes cast at the election is for the proposition, the municipal hospital is established.
Added by Stats. 1949, Ch. 79.
With the consent of the legislative body, the mayor shall appoint a board of seven hospital trustees to manage the hospital. Trustees may be residents or nonresidents of the city.
Amended by Stats. 1992, Ch. 72, Sec. 3. Effective May 28, 1992.
The trustees shall hold office for three years. The members of the first board shall classify themselves by lot so that the terms of two trustees expire at the end of the current fiscal year, two at the end of the next year, and three at the end of the second year. Vacancies shall be filled by appointment for the unexpired term.
Added by Stats. 1992, Ch. 72, Sec. 4. Effective May 28, 1992.
The board of trustees shall serve without compensation except that the city council, by resolution adopted by a majority vote of the members of the city council, may authorize the payment of not to exceed one hundred dollars ($100) per meeting not to exceed five meetings per month as compensation to each member of the board of trustees.
Each member of the board of trustees shall be allowed his or her actual necessary traveling and incidental expenses incurred in the performance of official business of the hospital as approved by the board.
Added by Stats. 1992, Ch. 72, Sec. 5. Effective May 28, 1992.
Notwithstanding any other provision of law, the term of any member of the board of trustees shall expire if he or she is absent from three consecutive regular meetings, or from three of any five consecutive meetings of the board and the city council by resolution declares that a vacancy exists on the board.
Amended by Stats. 1992, Ch. 72, Sec. 6. Effective May 28, 1992.
The board of hospital trustees shall meet at least once a month at the time and place it fixes by resolution. The president, or in the absence of the president, the president pro tempore, or a majority of the trustees may call a special meeting by serving written notice upon the other members by following the procedures prescribed in Section 54956 or 54956.5.
Repealed and added by Stats. 1992, Ch. 72, Sec. 8. Effective May 28, 1992.
(a)Except as provided in this section or Section 37624.3, all of the sessions of the board of trustees, whether regular or special, shall be open to the public, and a majority of the members of the board shall constitute a quorum for the transaction of business.
(b)The board of trustees may order a meeting held solely for the purpose of discussion or deliberation, or both, of reports involving hospital trade secrets to be held in closed session. Except as provided in this subdivision, the closed session shall meet all applicable requirements of Chapter 9 (commencing with Section 54950) of Division 2 of Title 5.
(c)“Hospital trade secrets,” as used in this section, means a “trade secret,” as defined in subdivision (d) of Section 3426.1 of the Civil Code, and which meets all of the following:
(1)Is necessary to initiate a new hospital service or program or add a hospital facility.
(2)Would, if prematurely disclosed, create a substantial probability of depriving the hospital of a substantial economic benefit.
(d)The exception provided in subdivision (b) to the general open meeting requirements for a meeting of the board of trustees, shall not apply to a meeting where there is action taken, as defined in Section 54952.6.
(e)Nothing in this section shall be construed to permit the board of trustees to order a closed meeting for the purposes of discussing or deliberating, or to permit the discussion or deliberation in any closed meeting of, any proposals regarding:
(1)The sale, conversion, contract for management, or leasing of any municipal hospital or the assets thereof, to any for-profit or nonprofit entity, agency, association, organization, governmental body, person, partnership, corporation, or hospital district.
(2)The conversion of any municipal hospital to any other form of ownership by the city.
(3)The dissolution of the municipal hospital.
Added by Stats. 2006, Ch. 157, Sec. 1. Effective January 1, 2007.
(a)When a municipal hospital established pursuant to this article is managed by a board of trustees that is appointed by the mayor, the city council may meet in a closed session held solely for the purpose of discussion, deliberation, or both, of reports involving trade secrets of the municipal hospital. Except as provided in this section, the closed session shall comply with all applicable requirements of Chapter 9 (commencing with Section 54950) of Division 2 of Title 5.
(b)“Hospital trade secrets,” as used in this section, means a “trade secret,” as defined in subdivision (d) of Section 3426.1 of the Civil Code, and which meets all of the following:
(1)Is necessary to initiate a new hospital service or program or add a hospital facility.
(2)Would, if prematurely disclosed, create a substantial probability of depriving the hospital of a substantial economic benefit.
(c)The exception provided in subdivision (a) to the general open meeting requirements for a meeting of the city council shall not apply to a meeting where there is action taken, as defined in Section 54952.6.
(d)Nothing in this section shall be construed to permit the city council to order a closed meeting for the purposes of discussing or deliberating, or to permit the discussion or deliberation in any closed meeting of, any proposals regarding any of the following:
(1)The sale, conversion, contract for management, or leasing of any municipal hospital or the assets thereof, to any for-profit or nonprofit entity, agency, association, organization, governmental agency, person, partnership, corporation, or hospital district.
(2)The conversion of any municipal hospital to any other form of ownership by the city.
(3)The dissolution of the municipal hospital.
Amended by Stats. 2018, Ch. 467, Sec. 24. (SB 1498) Effective January 1, 2019.
The board shall appoint one of its members president. That member shall serve for one year and until a successor is appointed. In the president’s absence, the board shall select a president pro tempore.
Added by Stats. 1949, Ch. 79.
The board shall cause a proper record of its proceedings to be kept.
Added by Stats. 1949, Ch. 79.
The board may make and enforce all regulations necessary for the administration, protection, and maintenance of the hospital and hospital property.
Added by Stats. 1992, Ch. 72, Sec. 9. Effective May 28, 1992.
(a)The rules of the hospital, established by the board of trustees pursuant to this article, shall include all of the following:
(1)Provision for the organization of physicians and surgeons, podiatrists, and dentists licensed to practice in this state who are permitted to practice in the hospital into a formal medical staff, with appropriate officers and bylaws and with staff appointments on an annual or biennial basis.
(2)Provision for a procedure for appointment and reappointment of medical staff consistent with the standards of the Joint Commission on Accreditation of Healthcare Organizations.
(3)Provisions that the medical staff shall be self-governing with respect to the professional work performed in the hospital; that the medical staff shall meet consistent with the minimum requirements of the Joint Commission on Accreditation of Healthcare Organizations; and that the medical records of the patients shall be the basis for review and analysis.
(4)Provision that accurate and complete medical records be prepared and maintained for all patients.
For purposes of this paragraph medical records include, but are not limited to, identification data, personal and family history, history of present illness, physical examination, special examinations, professional or working diagnoses, treatment, gross and microscopic pathological findings, progress notes, final diagnosis, condition on discharge, and other matters as the medical staff shall determine.
(b)The rules of the hospital, insofar as consistent with this article, shall be in accord with and contain minimum standards not less than the rules and standards of private or voluntary hospitals. Unless specifically prohibited by law, the board of trustees may adopt other rules which could be lawfully adopted by private or voluntary hospitals.
Added by Stats. 1949, Ch. 79.
The board may establish a nurses’ training school in connection with the hospital, prescribe a course of study, and provide for the issuance of diplomas to graduate nurses.
Added by Stats. 1949, Ch. 79.
The board may purchase any property necessary for equipping a hospital and nurses’ home.
Added by Stats. 1949, Ch. 79.
If the board determines that the city legislative body has not provided suitable buildings for the hospital, it may purchase real property and erect, or rent, and equip such buildings as it deems necessary.
Added by Stats. 1992, Ch. 72, Sec. 10. Effective May 28, 1992.
Except as provided in this section, by resolution, the board of trustees of a municipal hospital may authorize the disposition of any surplus property of the municipal hospital at fair market value by any method determined appropriate by the board.
The board of trustees of a municipal hospital may donate or sell, at less than fair market value, any surplus property to any local hospital district in California.
Added by Stats. 1992, Ch. 72, Sec. 11. Effective May 28, 1992.
(a)Notwithstanding any other provision of law, a municipal hospital, or any affiliated nonprofit corporation upon a finding by the board of trustees of the municipal hospital that it will be in the best interest of the public health of the communities served by the municipal hospital and in order to obtain a licensed physician and surgeon to practice in the communities served by the municipal hospital, may upon a four-fifths vote of the board of trustees do any of the following:
(1)Guarantee to a physician and surgeon a minimum income for a period of no more than three years from the opening of the physician and surgeon’s practice.
(2)Guarantee purchases of necessary equipment by the physician and surgeon.
(3)Provide reduced rental rates of office space in any building owned or leased by the municipal hospital or any of its affiliated entities, or subsidize rental payments for office space in any other buildings, for a term of not more than three years.
(4)Provide other incentives to a physician and surgeon in exchange for consideration and upon terms and conditions the hospital board of trustees deems reasonable and appropriate.
(b)Any provision in a contract between a physician and surgeon and a municipal hospital or affiliated nonprofit corporation is void which does any of the following:
(1)Imposes as a condition any requirement that the patients of the physician and surgeon, or a quota of the patients of the physician and surgeon, only be admitted to a specified hospital.
(2)Restricts the physician and surgeon from establishing staff privileges at, referring patients to, or generating business for another entity.
(3)Provides payment or other consideration to the physician and surgeon for the physician and surgeon’s referral of patients to the municipal hospital or an affiliated nonprofit corporation.
(c)Contracts between a physician and surgeon and a municipal hospital or affiliated nonprofit corporation that provide an inducement for the physician and surgeon to practice in the community served by the municipal hospital shall contain both of the following:
(1)A provision which requires the inducement to be repaid with interest if the inducement is repayable.
(2)A provision which states that no payment or other consideration shall be made for the referral of patients to the municipal hospital or an affiliated nonprofit corporation.
(d)To the extent that this section conflicts with Section 650 of the Business and Professions Code, Section 650 of the Business and Professions Code shall supersede this section.
(e)The Legislature finds that this section is necessary to assist municipal hospitals to attract qualified physicians and surgeons to practice in the communities served by these hospitals, and that the health and welfare of the residents in these communities require these provisions.
Added by Stats. 1992, Ch. 72, Sec. 12. Effective May 28, 1992.
Notwithstanding any other provision of law, upon a recommendation by the board of trustees and upon a finding by the city council that it will be in the best interests of the municipal hospital to provide additional diversification of facilities, the board of trustees may lease and operate the realty facilities, and business of a hospital district in California, or create a leasehold interest in its own realty, improvements, and business in favor of a hospital district, if the following apply:
(a)That the lease when taken together with any extensions of the lease shall not exceed a total of 10 years.
(b)That the lessor district or lessor city shall not finance any capital improvements through the use of the lessor district’s or lessor city’s credit.
(c)That the lessor district or lessor city shall have successfully completed any feasibility studies required by the board of directors of the district or the board of trustees or the city council of the municipal hospital as will reasonably ensure that the lessor hospital’s financial stability will not be endangered by the lease transaction.
(d)Nothing in this section shall be construed to impair or limit the authority of the California Medical Assistance Commission to contract for the provision of inpatient hospital services under the Medi-Cal program with local hospital district hospitals or municipal hospitals as sole distinct entities, even though one or more hospital districts or municipal hospitals may have entered into leasehold or joint-venture arrangements.
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