§ 14-263-106 - Contracting or leasing of hospital facilities. - Arkansas Statutes

14-263-106. Contracting or leasing of hospital facilities.

(a) (1) Should the board of governors determine that it would be in the best interests of the citizens of the county that the hospital be operated or leased to an individual, a firm, or a corporation, the board of governors may contract or lease the equipment and hospital facilities to the individual, firm, or corporation for a period of time and for consideration and conditions the board of governors may deem wise, subject to approval of the contract or lease by the county judge and the quorum court of the county in which the hospital is located.

(2) With the recommendation of the board of governors, the county may be the lessor of the hospital rather than the board.

(3) Once a lease has been entered into by the county rather than the board of governors, there shall be no requirement for a future recommendation by the board of governors for a subsequent lease by the board of governors before entering into the lease, and the county may enter into contracts concerning the hospital without the recommendation of the board of governors.

(b) If the county rather than the board of governors leases the hospital facilities in accordance with subsection (a) of this section, the duties of managing, controlling, and supervising the operation of the county hospital, as described in 14-263-105, shall be imposed upon the lessee, which shall eliminate the requirement that a board of governors submit monthly reports or be in place for the duration of the term of the lease and any extensions thereof, unless the quorum court and county judge determine the board should continue in its existence or should be reinstated.

(c) Once the board of governors has made its initial determination that it is in the best interests of the citizens of the county to lease the hospital, the county, if it is the lessor, will thereafter be responsible for all matters pertaining to the lease, the facilities, and the lessee, including without limitation:

(1) Renewal or extension of the lease; or

(2) Any conflicts that may arise pertaining to the lease or the lessee.

(d) (1) This section applies to all hospital leases adopted before July 31, 2007, adopted or entered under the authority of this section.

(2) All such leases adopted or entered into before July 31, 2007, shall be considered for all purposes as if adopted or entered into under this section.

(3) A lease adopted before July 31, 2007, shall not be held to be invalid by reason of 14-263-103 and this section.