CS/CS/HB 395

1
A bill to be entitled
2An act relating to the University of Florida J. Hillis
3Miller Health Center; amending s. 1004.41, F.S.;
4correcting the name of one of the health center's
5colleges; specifying that the University of Florida Board
6of Trustees shall lease Shands Teaching Hospital and
7Clinics on the Gainesville campus to Shands Teaching
8Hospital and Clinics, Inc.; specifying the primary purpose
9of Shands Teaching Hospital and Clinics, Inc.; providing
10requirements for lease, contract, or agreement between the
11University of Florida Board of Trustees and Shands
12Teaching Hospital and Clinics, Inc.; authorizing the
13creation of corporate subsidiaries and affiliates;
14providing the right of control; providing for sovereign
15immunity; providing that Shands Jacksonville Medical
16Center, Inc., and its parent, Shands Jacksonville
17HealthCare, Inc., are private not-for-profit corporations
18organized primarily to support the health affairs mission
19of the University of Florida Board of Trustees;
20authorizing the creation of corporate subsidiaries and
21affiliates; providing requirements for lease, contract, or
22agreement between the University of Florida Board of
23Trustees and the corporations; providing the right of
24control; providing for sovereign immunity; providing an
25effective date.
26
27Be It Enacted by the Legislature of the State of Florida:
28
29     Section 1.  Section 1004.41, Florida Statutes, is amended
30to read:
31     1004.41  University of Florida; J. Hillis Miller Health
32Center.-
33     (1)  There is established the J. Hillis Miller Health
34Center at the University of Florida, including campuses at
35Gainesville and Jacksonville and affiliated teaching hospitals,
36which 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
43hospitals.
44     (2)  Each college of the health center shall be so
45maintained and operated as to comply with the standards approved
46by a nationally recognized association for accreditation.
47     (3)(a)  The University of Florida Health Center Operations
48and Maintenance Trust Fund shall be administered by the
49University of Florida Board of Trustees. Funds shall be credited
50to the trust fund from the sale of goods and services performed
51by the University of Florida Veterinary Medicine Teaching
52Hospital. The purpose of the trust fund is to support the
53instruction, research, and service missions of the University of
54Florida College of Veterinary Medicine.
55     (b)  Notwithstanding the provisions of s. 216.301, and
56pursuant to s. 216.351, any balance in the trust fund at the end
57of any fiscal year shall remain in the trust fund and shall be
58available for carrying out the purposes of the trust fund.
59     (4)(a)  The University of Florida Board of Trustees shall
60lease the hospital facilities of the health center known as the
61Shands Teaching Hospital and Clinics on the Gainesville campus
62of the University of Florida and all furnishings, equipment, and
63other chattels or choses in action used in the operation of
64Shands Teaching Hospital and Clinics the hospital, to Shands
65Teaching Hospital and Clinics, Inc., a private not-for-profit
66corporation organized solely for the primary purpose of
67supporting the University of Florida Board of Trustees' health
68affairs mission of community service and patient care, education
69and training of health professionals, and clinical research. In
70furtherance of that primary purpose, Shands Teaching Hospital
71and Clinics, Inc., shall operate operating the hospital and
72ancillary health care facilities as deemed of the health center
73and other health care facilities and programs determined to be
74necessary by the board of Shands Teaching Hospital and Clinics,
75Inc. the nonprofit corporation. The rental for the hospital
76facilities shall be an amount equal to the debt service on bonds
77or revenue certificates issued solely for capital improvements
78to the hospital facilities or as otherwise provided by law.
79     (b)  The University of Florida Board of Trustees shall
80provide in the lease or by separate contract or agreement with
81Shands Teaching Hospital and Clinics, Inc., the not-for-profit
82corporation for the following:
83     1.  Approval of the articles of incorporation of Shands
84Teaching Hospital and Clinics, Inc., the not-for-profit
85corporation by the University of Florida Board of Trustees.
86     2.  and the Governance of Shands Teaching Hospital and
87Clinics, Inc., the not-for-profit corporation by a board of
88directors appointed, subject to removal, and chaired by the
89President of the University of Florida, or his or her designee,
90and vice chaired by the Vice President for Health Affairs of the
91University of Florida or his or her designee.
92     3.2.  The Use of hospital facilities and personnel in
93support of community service and patient care, the research
94programs, and of the teaching roles role of the health center.
95     4.3.  The Continued recognition of the collective
96bargaining units and collective bargaining agreements as
97currently composed and recognition of the certified labor
98organizations representing those units and agreements.
99     5.4.  The Use of hospital facilities and personnel in
100connection with research programs conducted by the health
101center.
102     6.5.  Reimbursement to Shands Teaching Hospital and
103Clinics, Inc., the hospital for indigent patients, state-
104mandated programs, underfunded state programs, and costs to
105Shands Teaching Hospital and Clinics, Inc., the hospital for
106support of the teaching and research programs of the health
107center. Such reimbursement shall be appropriated to either the
108health center or Shands Teaching Hospital and Clinics, Inc., the
109hospital each year by the Legislature after review and approval
110of the request for funds.
111     7.  Audit of the financial statements of Shands Teaching
112Hospital and Clinics, Inc., in accordance with generally
113accepted accounting principles as prescribed by the Governmental
114Accounting Standards Board for a separate corporation affiliated
115with a government entity that holds a voting majority interest
116of the affiliated corporation's governing board. The financial
117statements shall be provided to the University of Florida Board
118of Trustees for attachment to its audited financial statement
119which is provided to the Auditor General. The University of
120Florida may obtain additional financial information from Shands
121Teaching Hospital and Clinics, Inc., upon request by the Auditor
122General. This subparagraph applies equally to any not-for-profit
123subsidiary of Shands Teaching Hospitals and Clinics, Inc., which
124directly delivers health care services and also qualifies as an
125instrumentality of the state under the governance control and
126the primary purpose standards specified in this section.
127     (c)  The University of Florida Board of Trustees may, with
128the approval of the Legislature, increase the hospital
129facilities or remodel or renovate them if, provided that the
130rental paid by Shands Teaching Hospital and Clinics, Inc., the
131hospital for such new, remodeled, or renovated facilities is
132sufficient to amortize the costs thereof over a reasonable
133period of time or fund the debt service for any bonds or revenue
134certificates issued to finance such improvements.
135     (d)  The University of Florida Board of Trustees may is
136authorized to provide to Shands Teaching Hospital and Clinics,
137Inc., the not-for-profit corporation leasing the hospital
138facilities and its not-for-profit subsidiaries and affiliates,
139and any successor corporation that acts in support of the board
140of trustees, comprehensive general liability insurance,
141including professional liability, from a self-insurance trust
142program established pursuant to s. 1004.24.
143     (e)  Shands Teaching Hospital and Clinics, Inc., in support
144of the health affairs mission of the University of Florida Board
145of Trustees and with the board's prior approval, may create or
146have created either for-profit or not-for-profit subsidiaries
147and affiliates, or both. The University of Florida Board of
148Trustees, which may act through the president of the university
149or his or her designee, may control Shands Teaching Hospital and
150Clinics, Inc. For purposes of sovereign immunity pursuant to s.
151768.28(2), Shands Teaching Hospital and Clinics, Inc., and any
152not-for-profit subsidiary which directly delivers health care
153services and whose governing board is chaired by the president
154of the university or his or her designee and is controlled by
155the University of Florida Board of Trustees, which may act
156through the president of the university or his or her designee
157and whose primary purpose is the support of the University of
158Florida Board of Trustees' health affairs mission, shall be
159conclusively deemed a corporation primarily acting as an
160instrumentality of the state.
161     (f)(e)   In the event that the lease of Shands Teaching
162Hospital and Clinics the hospital facilities to Shands Teaching
163Hospital and Clinics, Inc., the not-for-profit corporation is
164terminated for any reason, the University of Florida Board of
165Trustees shall resume management and operation of Shands
166Teaching Hospital and Clinics the hospital facilities. In such
167event, the University of Florida Board of Trustees may use is
168authorized to utilize revenues generated from the operation of
169Shands Teaching Hospital and Clinics the hospital facilities to
170pay the costs and expenses of operating the hospital facility
171for the remainder of the fiscal year in which such termination
172occurs.
173     (5)(a)  Shands Jacksonville Medical Center, Inc., and its
174parent, Shands Jacksonville HealthCare, Inc., are private not-
175for-profit corporations organized primarily to support the
176health affairs mission of the University of Florida Board of
177Trustees in community service and patient care, education and
178training of health affairs professionals, and clinical research.
179Shands Jacksonville Medical Center, Inc., is a teaching hospital
180affiliated with the University of Florida Board of Trustees and
181is located, in part, on the Jacksonville Campus of the
182University of Florida. Shands Jacksonville Medical Center, Inc.,
183and Shands Jacksonville HealthCare, Inc., in support of the
184health affairs mission of the University of Florida Board of
185Trustees and with its prior approval, may create or have created
186either for-profit or not-for-profit subsidiaries or affiliates,
187or both.
188     (b)  The University of Florida Board of Trustees shall
189provide in the lease or by separate contract or agreement with
190Shands Jacksonville Medical Center, Inc., and Shands
191Jacksonville HealthCare, Inc., for the following:
192     1.  Approval of the articles of incorporation of Shands
193Jacksonville Medical Center, Inc., and of Shands Jacksonville
194HealthCare, Inc., by the University of Florida Board of
195Trustees, which may act through the president of the university
196or his or her designee. In approving the articles of
197incorporation of Shands Jacksonville Medical Center, Inc., and
198of Shands Jacksonville HealthCare, Inc., the president of the
199university, or his or her designee, may act as the chair of the
200board of directors, or the president of the university or his or
201her designee or members of the University of Florida Board of
202Trustees may act as the approving body of Shands Jacksonville
203Medical Center, Inc., or Shands Jacksonville HealthCare, Inc.
204     2.  Governance of Shands Jacksonville Medical Center, Inc.,
205and of Shands Jacksonville HealthCare, Inc., by boards of
206directors appointed, subject to removal, and chaired by the
207President of the University of Florida, or his or her designee.
208One director of each board may be so appointed after being
209nominated by the mayor of the City of Jacksonville subject to
210the applicable standards for directors of such board. If there
211is a vice chair of the board of directors of Shands Jacksonville
212Medical Center, Inc., or Shands Jacksonville HealthCare, Inc.,
213the Vice President for Health Affairs of the University of
214Florida, or his or her designee or the designee of the president
215of the university, shall hold that position.
216     3.  Use of the Shands Jacksonville Medical Center, Inc.,
217hospital facilities and personnel in support of community
218service and patient care, research programs, and the teaching
219roles of the health center of the University of Florida Board of
220Trustees.
221     4.  Reimbursement to Shands Jacksonville Medical Center,
222Inc., for indigent patients, state-mandated programs,
223underfunded state programs, and costs to the not-for-profit
224corporation for support of the teaching and research programs of
225the health center. Such reimbursement shall be appropriated to
226either the health center or the not-for-profit corporation each
227year by the Legislature after review and approval of the request
228for funds.
229     5.  Audit of the financial statements of Shands
230Jacksonville Medical Center, Inc., and Shands Jacksonville
231HealthCare, Inc., in accordance with generally accepted
232accounting principles as prescribed by the Governmental
233Accounting Standards Board for a separate corporation affiliated
234with a government entity that holds a voting majority interest
235of the affiliated corporation's governing board. The financial
236statements shall be provided to the University of Florida Board
237of Trustees for attachment to its audited financial statement
238which is provided to the Auditor General. The University of
239Florida may obtain additional financial information from Shands
240Jacksonville Medical Center, Inc., and Shands Jacksonville
241HealthCare, Inc., upon request by the Auditor General. This
242subparagraph applies equally to any not-for-profit subsidiary
243which directly delivers health care services and also qualifies
244as an instrumentality of the state under the governance control
245and primary purpose standards specified in this section.
246     (c)  The University of Florida Board of Trustees, which may
247act through the president of the university or his or her
248designee, may control Shands Jacksonville Medical Center, Inc.,
249and Shands Jacksonville HealthCare, Inc.
250     (d)  For purposes of sovereign immunity pursuant to s.
251768.28(2), Shands Jacksonville Medical Center, Inc., Shands
252Jacksonville HealthCare, Inc., and any not-for-profit subsidiary
253which directly delivers health care services and whose governing
254board is chaired by the President of the University of Florida
255or his or her designee and is controlled by the University of
256Florida Board of Trustees, which may act through the president
257of the university or his or designee and whose primary purpose
258is the support of the University of Florida Board of Trustees'
259health affairs mission, shall be conclusively deemed
260corporations primarily acting as instrumentalities of the state.
261     (e)(f)  The University of Florida Board of Trustees may is
262authorized to provide to Shands Jacksonville HealthCare, Inc.,
263and Shands Jacksonville Medical Center, Inc., and any of their
264its not-for-profit subsidiaries and affiliates and any successor
265corporation that acts in support of the board of trustees,
266comprehensive general liability coverage, including professional
267liability, from the self-insurance programs established pursuant
268to s. 1004.24.
269     Section 2.  This act shall take effect July 1, 2011.


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