CS/HB 395

1	A bill to be entitled
2	An act relating to the University of Florida J. Hillis
3	Miller Health Center; amending s. 1004.41, F.S.;
4	correcting the name of one of the health center's
5	colleges; specifying that the University of Florida Board
6	of Trustees shall lease Shands Teaching Hospital and
7	Clinics on the Gainesville campus to Shands Teaching
8	Hospital and Clinics, Inc.; specifying the primary purpose
9	of Shands Teaching Hospital and Clinics, Inc.; providing
10	requirements for lease, contract, or agreement between the
11	University of Florida Board of Trustees and Shands
12	Teaching Hospital and Clinics, Inc.; authorizing the
13	creation of corporate subsidiaries and affiliates;
14	providing the right of control; providing for sovereign
15	immunity; providing that Shands Jacksonville Medical
16	Center, Inc., and its parent, Shands Jacksonville
17	HealthCare, Inc., are private not-for-profit corporations
18	organized primarily to support the health affairs mission
19	of the University of Florida Board of Trustees; providing
20	requirements for contract or agreement between the
21	University of Florida Board of Trustees and the
22	corporations; authorizing the creation of corporate
23	subsidiaries and affiliates; providing the right of
24	control; providing for sovereign immunity; providing an
25	effective date.
26
27	Be It Enacted by the Legislature of the State of Florida:
28
29	Section 1.  Section 1004.41, Florida Statutes, is amended
30	to read:
31	1004.41  University of Florida; J. Hillis Miller Health
32	Center.-
33	(1)  There is established the J. Hillis Miller Health
34	Center at the University of Florida, including campuses at
35	Gainesville and Jacksonville and affiliated teaching hospitals,
36	which shall include the following colleges:
37	(a)  College of Dentistry.
38	(b)  College of Public Health and Health Professions.
39	(c)  College of Medicine.
40	(d)  College of Nursing.
41	(e)  College of Pharmacy.
42	(f)  College of Veterinary Medicine and related teaching
43	hospitals.
44	(2)  Each college of the health center shall be so
45	maintained and operated as to comply with the standards approved
46	by a nationally recognized association for accreditation.
47	(3)(a)  The University of Florida Health Center Operations
48	and Maintenance Trust Fund shall be administered by the
49	University of Florida Board of Trustees. Funds shall be credited
50	to the trust fund from the sale of goods and services performed
51	by the University of Florida Veterinary Medicine Teaching
52	Hospital. The purpose of the trust fund is to support the
53	instruction, research, and service missions of the University of
54	Florida College of Veterinary Medicine.
55	(b)  Notwithstanding the provisions of s. 216.301, and
56	pursuant to s. 216.351, any balance in the trust fund at the end
57	of any fiscal year shall remain in the trust fund and shall be
58	available for carrying out the purposes of the trust fund.
59	(4)(a)  The University of Florida Board of Trustees shall
60	lease the hospital facilities of the health center known as the
61	Shands Teaching Hospital and Clinics on the Gainesville campus
62	of the University of Florida and all furnishings, equipment, and
63	other chattels or choses in action used in the operation of
64	Shands Teaching Hospital and Clinics the hospital, to Shands
65	Teaching Hospital and Clinics, Inc., a private not-for-profit
66	corporation organized solely for the primary purpose of
67	supporting the University of Florida Board of Trustees' health
68	affairs mission of community service and patient care, education
69	and training of health professionals, and clinical research. In
70	furtherance of that primary purpose, Shands Teaching Hospital
71	and Clinics, Inc., shall operate Shands Teaching Hospital and
72	Clinics operating the hospital and ancillary health care
73	facilities as deemed of the health center and other health care
74	facilities and programs determined to be necessary by the board
75	of Shands Teaching Hospital and Clinics, Inc. the nonprofit
76	corporation. The rental for Shands Teaching Hospital and Clinics
77	the hospital facilities shall be an amount equal to the debt
78	service on bonds or revenue certificates issued solely for
79	capital improvements to the hospital facilities or as otherwise
80	provided by law.
81	(b)  The University of Florida Board of Trustees shall
82	provide in the lease or by separate contract or agreement with
83	Shands Teaching Hospital and Clinics, Inc., the not-for-profit
84	corporation for the following:
85	1.  Approval of the articles of incorporation of Shands
86	Teaching Hospital and Clinics, Inc., the not-for-profit
87	corporation by the University of Florida Board of Trustees.
88	2.  and the Governance of Shands Teaching Hospital and
89	Clinics, Inc., the not-for-profit corporation by a board of
90	directors appointed, subject to removal, and chaired by the
91	President of the University of Florida, or his or her designee,
92	and vice chaired by the Vice President for Health Affairs of the
93	University of Florida or his or her designee.
94	3.2.  The Use of hospital facilities and personnel in
95	support of community service and patient care, the research
96	programs, and of the teaching roles role of Shands Teaching
97	Hospital and Clinics the health center.
98	4.3.  The Continued recognition of the collective
99	bargaining units and collective bargaining agreements as
100	currently composed and recognition of the certified labor
101	organizations representing those units and agreements.
102	5.4.  The Use of hospital facilities and personnel in
103	connection with research programs conducted by Shands Teaching
104	Hospital and Clinics the health center.
105	6.5.  Reimbursement to Shands Teaching Hospital and
106	Clinics, Inc., the hospital for indigent patients, state-
107	mandated programs, underfunded state programs, and costs to
108	Shands Teaching Hospital and Clinics, Inc., the hospital for
109	support of the teaching and research programs of the health
110	center. Such reimbursement shall be appropriated to either the
111	health center or Shands Teaching Hospital and Clinics, Inc., the
112	hospital each year by the Legislature after review and approval
113	of the request for funds.
114	7.  Audit of the financial statements of Shands Teaching
115	Hospital and Clinics, Inc., in accordance with generally
116	accepted accounting principles as prescribed by the Governmental
117	Accounting Standards Board for a separate corporation affiliated
118	with a government entity that holds a voting majority interest
119	of the affiliated corporation's governing board. The financial
120	statements shall be provided to the University of Florida Board
121	of Trustees for attachment to its audited financial statement
122	which is provided to the Auditor General. The University of
123	Florida may obtain additional financial information from Shands
124	Teaching Hospital and Clinics, Inc., upon request by the Auditor
125	General.
126	(c)  The University of Florida Board of Trustees may, with
127	the approval of the Legislature, increase the Shands Teaching
128	Hospital and Clinics hospital facilities or remodel or renovate
129	them if, provided that the rental paid by Shands Teaching
130	Hospital and Clinics, Inc., the hospital for such new,
131	remodeled, or renovated facilities is sufficient to amortize the
132	costs thereof over a reasonable period of time or fund the debt
133	service for any bonds or revenue certificates issued to finance
134	such improvements.
135	(d)  The University of Florida Board of Trustees may is
136	authorized to provide to Shands Teaching Hospital and Clinics,
137	Inc., the not-for-profit corporation leasing the hospital
138	facilities and its not-for-profit subsidiaries and affiliates,
139	comprehensive general liability insurance, including
140	professional liability, from a self-insurance trust program
141	established pursuant to s. 1004.24.
142	(e)  Shands Teaching Hospital and Clinics, Inc., in support
143	of the health affairs mission of the University of Florida Board
144	of Trustees and with the board's prior approval, may create or
145	have created either for-profit or not-for-profit subsidiaries
146	and affiliates, or both. The University of Florida Board of
147	Trustees, which may act through the president of the university
148	or his or her designee, may control Shands Teaching Hospital and
149	Clinics, Inc. For purposes of sovereign immunity pursuant to s.
150	768.28(2), Shands Teaching Hospital and Clinics, Inc., shall be
151	conclusively deemed a corporation primarily acting as an
152	instrumentality of the state.
153	(f)(e)   In the event that the lease of Shands Teaching
154	Hospital and Clinics the hospital facilities to Shands Teaching
155	Hospital and Clinics, Inc., the not-for-profit corporation is
156	terminated for any reason, the University of Florida Board of
157	Trustees shall resume management and operation of Shands
158	Teaching Hospital and Clinics the hospital facilities. In such
159	event, the University of Florida Board of Trustees may use is
160	authorized to utilize revenues generated from the operation of
161	Shands Teaching Hospital and Clinics the hospital facilities to
162	pay the costs and expenses of operating the hospital facility
163	for the remainder of the fiscal year in which such termination
164	occurs.
165	(5)(a)  Shands Jacksonville Medical Center, Inc., and its
166	parent, Shands Jacksonville HealthCare, Inc., are private not-
167	for-profit corporations organized primarily to support the
168	health affairs mission of the University of Florida Board of
169	Trustees in community service and patient care, education and
170	training of health affairs professionals, and clinical research.
171	Shands Jacksonville Medical Center, Inc., is a teaching hospital
172	affiliated with the University of Florida Board of Trustees and
173	is located, in part, on the Jacksonville Campus of the
174	University of Florida. Shands Jacksonville Medical Center, Inc.,
175	and Shands Jacksonville HealthCare, Inc., in support of the
176	health affairs mission of the University of Florida Board of
177	Trustees and with its prior approval, may create or have created
178	either for-profit or not-for-profit subsidiaries or affiliates,
179	or both.
180	(b)  The University of Florida Board of Trustees shall
181	provide by contract or other agreement with Shands Jacksonville
182	Medical Center, Inc., and Shands Jacksonville HealthCare, Inc.,
183	for the following:
184	1.  Approval of the articles of incorporation of Shands
185	Jacksonville Medical Center, Inc., and of Shands Jacksonville
186	HealthCare, Inc., by the University of Florida Board of
187	Trustees, which may act through the president of the university
188	or his or her designee. In approving the articles of
189	incorporation of Shands Jacksonville Medical Center, Inc., and
190	of Shands Jacksonville HealthCare, Inc., the President of the
191	University of Florida, or his or her designee, may act as the
192	chair of the board of directors or the president of the
193	university or his or her designee or members of the University
194	of Florida Board of Trustees may act as members of the board of
195	directors of Shands Jacksonville Medical Center, Inc., or Shands
196	Jacksonville HealthCare, Inc.
197	2.  Governance of Shands Jacksonville Medical Center, Inc.,
198	and of Shands Jacksonville HealthCare, Inc., by boards of
199	directors appointed, subject to removal, and chaired by the
200	President of the University of Florida, or his or her designee.
201	One director of each board may be so appointed after being
202	nominated by the mayor of the City of Jacksonville subject to
203	the applicable standards for directors of such board. If there
204	is a vice chair of the board of directors of Shands Jacksonville
205	Medical Center, Inc., or Shands Jacksonville HealthCare, Inc.,
206	the Vice President for Health Affairs of the University of
207	Florida or his or her designee or the designee of the president
208	of the university shall hold that position.
209	3.  Use of the Shands Jacksonville Medical Center, Inc.,
210	hospital facilities and personnel in support of community
211	service and patient care, research programs, and the teaching
212	roles of the health center of the University of Florida Board of
213	Trustees.
214	4.  Reimbursement to Shands Jacksonville Medical Center,
215	Inc., for indigent patients, state-mandated programs,
216	underfunded state programs, and costs to the not-for-profit
217	corporation for support of the teaching and research programs of
218	the health center. Such reimbursement shall be appropriated to
219	either the health center or the not-for-profit corporation each
220	year by the Legislature after review and approval of the request
221	for funds.
222	5.  Audit of the financial statements of Shands
223	Jacksonville Medical Center, Inc., and Shands Jacksonville
224	HealthCare, Inc., in accordance with generally accepted
225	accounting principles as prescribed by the Governmental
226	Accounting Standards Board for a separate corporation affiliated
227	with a government entity that holds a voting majority interest
228	of the affiliated corporation's governing board. The financial
229	statements shall be provided to the University of Florida Board
230	of Trustees for attachment to its audited financial statement
231	which is provided to the Auditor General. The University of
232	Florida may obtain additional financial information from Shands
233	Jacksonville Medical Center, Inc., and Shands Jacksonville
234	HealthCare, Inc., upon request by the Auditor General.
235	(c)  The University of Florida Board of Trustees, which may
236	act through the president of the university or his or her
237	designee, may control Shands Jacksonville Medical Center, Inc.,
238	and Shands Jacksonville HealthCare, Inc.
239	(d)  For purposes of sovereign immunity pursuant to s.
240	768.28(2), Shands Jacksonville Medical Center, Inc., and Shands
241	Jacksonville HealthCare, Inc., shall be conclusively deemed
242	corporations primarily acting as instrumentalities of the state.
243	(e)(f)  The University of Florida Board of Trustees may is
244	authorized to provide to Shands Jacksonville HealthCare, Inc.,
245	and Shands Jacksonville Medical Center, Inc., and any of their
246	its not-for-profit subsidiaries and affiliates and any successor
247	corporation that acts in support of the board of trustees,
248	comprehensive general liability coverage, including professional
249	liability, from the self-insurance programs established pursuant
250	to s. 1004.24.
251	Section 2.  This act shall take effect July 1, 2011.

CODING: Words stricken are deletions; words underlined are additions.