CS/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;
20	authorizing the creation of corporate subsidiaries and
21	affiliates; providing requirements for lease, contract, or
22	agreement between the University of Florida Board of
23	Trustees and the corporations; providing the right of
24	control; providing for sovereign immunity; providing for
25	application; providing an 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 operating the hospital and
72	ancillary health care facilities as deemed of the health center
73	and other health care facilities and programs determined to be
74	necessary by the board of Shands Teaching Hospital and Clinics,
75	Inc. the nonprofit corporation. The rental for the hospital
76	facilities shall be an amount equal to the debt service on bonds
77	or revenue certificates issued solely for capital improvements
78	to the hospital facilities or as otherwise provided by law.
79	(b)  The University of Florida Board of Trustees shall
80	provide in the lease or by separate contract or agreement with
81	Shands Teaching Hospital and Clinics, Inc., the not-for-profit
82	corporation for the following:
83	1.  Approval of the articles of incorporation of Shands
84	Teaching Hospital and Clinics, Inc., the not-for-profit
85	corporation by the University of Florida Board of Trustees.
86	2.  and the Governance of Shands Teaching Hospital and
87	Clinics, Inc., the not-for-profit corporation by a board of
88	directors appointed, subject to removal, and chaired by the
89	President of the University of Florida, or his or her designee,
90	and vice chaired by the Vice President for Health Affairs of the
91	University of Florida or his or her designee.
92	3.2.  The Use of hospital facilities and personnel in
93	support of community service and patient care, the research
94	programs, and of the teaching roles role of the health center.
95	4.3.  The Continued recognition of the collective
96	bargaining units and collective bargaining agreements as
97	currently composed and recognition of the certified labor
98	organizations representing those units and agreements.
99	5.4.  The Use of hospital facilities and personnel in
100	connection with research programs conducted by the health
101	center.
102	6.5.  Reimbursement to Shands Teaching Hospital and
103	Clinics, Inc., the hospital for indigent patients, state-
104	mandated programs, underfunded state programs, and costs to
105	Shands Teaching Hospital and Clinics, Inc., the hospital for
106	support of the teaching and research programs of the health
107	center. Such reimbursement shall be appropriated to either the
108	health center or Shands Teaching Hospital and Clinics, Inc., the
109	hospital each year by the Legislature after review and approval
110	of the request for funds.
111	7.  Audit of the financial statements of Shands Teaching
112	Hospital and Clinics, Inc., in accordance with generally
113	accepted accounting principles as prescribed by the Governmental
114	Accounting Standards Board for a separate corporation affiliated
115	with a government entity that holds a voting majority interest
116	of the affiliated corporation's governing board. The financial
117	statements shall be provided to the University of Florida Board
118	of Trustees for attachment to its audited financial statement
119	which is provided to the Auditor General. The University of
120	Florida may obtain additional financial information from Shands
121	Teaching Hospital and Clinics, Inc., upon request by the Auditor
122	General. This subparagraph applies equally to any not-for-profit
123	subsidiary of Shands Teaching Hospitals and Clinics, Inc., which
124	directly delivers health care services and also qualifies as an
125	instrumentality of the state under the governance control and
126	the primary purpose standards specified in this section.
127	(c)  The University of Florida Board of Trustees may, with
128	the approval of the Legislature, increase the hospital
129	facilities or remodel or renovate them if, provided that the
130	rental paid by Shands Teaching Hospital and Clinics, Inc., the
131	hospital for such new, remodeled, or renovated facilities is
132	sufficient to amortize the costs thereof over a reasonable
133	period of time or fund the debt service for any bonds or revenue
134	certificates issued to finance 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	and any successor corporation that acts in support of the board
140	of trustees, comprehensive general liability insurance,
141	including professional liability, from a self-insurance trust
142	program established pursuant to s. 1004.24.
143	(e)  Shands Teaching Hospital and Clinics, Inc., in support
144	of the health affairs mission of the University of Florida Board
145	of Trustees and with the board's prior approval, may create or
146	have created either for-profit or not-for-profit subsidiaries
147	and affiliates, or both. The University of Florida Board of
148	Trustees, which may act through the president of the university
149	or his or her designee, may control Shands Teaching Hospital and
150	Clinics, Inc. For purposes of sovereign immunity pursuant to s.
151	768.28(2), Shands Teaching Hospital and Clinics, Inc., and any
152	not-for-profit subsidiary which directly delivers health care
153	services and whose governing board is chaired by the president
154	of the university or his or her designee and is controlled by
155	the University of Florida Board of Trustees, which may act
156	through the president of the university or his or her designee
157	and whose primary purpose is the support of the University of
158	Florida Board of Trustees' health affairs mission, shall be
159	conclusively deemed a corporation primarily acting as an
160	instrumentality of the state.
161	(f)(e)   In the event that the lease of Shands Teaching
162	Hospital and Clinics the hospital facilities to Shands Teaching
163	Hospital and Clinics, Inc., the not-for-profit corporation is
164	terminated for any reason, the University of Florida Board of
165	Trustees shall resume management and operation of Shands
166	Teaching Hospital and Clinics the hospital facilities. In such
167	event, the University of Florida Board of Trustees may use is
168	authorized to utilize revenues generated from the operation of
169	Shands Teaching Hospital and Clinics the hospital facilities to
170	pay the costs and expenses of operating the hospital facility
171	for the remainder of the fiscal year in which such termination
172	occurs.
173	(5)(a)  Shands Jacksonville Medical Center, Inc., and its
174	parent, Shands Jacksonville HealthCare, Inc., are private not-
175	for-profit corporations organized primarily to support the
176	health affairs mission of the University of Florida Board of
177	Trustees in community service and patient care, education and
178	training of health affairs professionals, and clinical research.
179	Shands Jacksonville Medical Center, Inc., is a teaching hospital
180	affiliated with the University of Florida Board of Trustees and
181	is located, in part, on the Jacksonville Campus of the
182	University of Florida. Shands Jacksonville Medical Center, Inc.,
183	and Shands Jacksonville HealthCare, Inc., in support of the
184	health affairs mission of the University of Florida Board of
185	Trustees and with its prior approval, may create or have created
186	either for-profit or not-for-profit subsidiaries or affiliates,
187	or both.
188	(b)  The University of Florida Board of Trustees shall
189	provide in the lease or by separate contract or agreement with
190	Shands Jacksonville Medical Center, Inc., and Shands
191	Jacksonville HealthCare, Inc., for the following:
192	1.  Approval of the articles of incorporation of Shands
193	Jacksonville Medical Center, Inc., and of Shands Jacksonville
194	HealthCare, Inc., by the University of Florida Board of
195	Trustees, which may act through the president of the university
196	or his or her designee. In approving the articles of
197	incorporation of Shands Jacksonville Medical Center, Inc., and
198	of Shands Jacksonville HealthCare, Inc., the president of the
199	university, or his or her designee, may act as the chair of the
200	board of directors, or the president of the university or his or
201	her designee or members of the University of Florida Board of
202	Trustees may act as the approving body of Shands Jacksonville
203	Medical Center, Inc., or Shands Jacksonville HealthCare, Inc.
204	2.  Governance of Shands Jacksonville Medical Center, Inc.,
205	and of Shands Jacksonville HealthCare, Inc., by boards of
206	directors appointed, subject to removal, and chaired by the
207	President of the University of Florida, or his or her designee.
208	One director of each board may be so appointed after being
209	nominated by the mayor of the City of Jacksonville subject to
210	the applicable standards for directors of such board. If there
211	is a vice chair of the board of directors of Shands Jacksonville
212	Medical Center, Inc., or Shands Jacksonville HealthCare, Inc.,
213	the Vice President for Health Affairs of the University of
214	Florida, or his or her designee or the designee of the president
215	of the university, shall hold that position.
216	3.  Use of the Shands Jacksonville Medical Center, Inc.,
217	hospital facilities and personnel in support of community
218	service and patient care, research programs, and the teaching
219	roles of the health center of the University of Florida Board of
220	Trustees.
221	4.  Reimbursement to Shands Jacksonville Medical Center,
222	Inc., for indigent patients, state-mandated programs,
223	underfunded state programs, and costs to the not-for-profit
224	corporation for support of the teaching and research programs of
225	the health center. Such reimbursement shall be appropriated to
226	either the health center or the not-for-profit corporation each
227	year by the Legislature after review and approval of the request
228	for funds.
229	5.  Audit of the financial statements of Shands
230	Jacksonville Medical Center, Inc., and Shands Jacksonville
231	HealthCare, Inc., in accordance with generally accepted
232	accounting principles as prescribed by the Governmental
233	Accounting Standards Board for a separate corporation affiliated
234	with a government entity that holds a voting majority interest
235	of the affiliated corporation's governing board. The financial
236	statements shall be provided to the University of Florida Board
237	of Trustees for attachment to its audited financial statement
238	which is provided to the Auditor General. The University of
239	Florida may obtain additional financial information from Shands
240	Jacksonville Medical Center, Inc., and Shands Jacksonville
241	HealthCare, Inc., upon request by the Auditor General. This
242	subparagraph applies equally to any not-for-profit subsidiary
243	which directly delivers health care services and also qualifies
244	as an instrumentality of the state under the governance control
245	and primary purpose standards specified in this section.
246	(c)  The University of Florida Board of Trustees, which may
247	act through the president of the university or his or her
248	designee, may control Shands Jacksonville Medical Center, Inc.,
249	and Shands Jacksonville HealthCare, Inc.
250	(d)  For purposes of sovereign immunity pursuant to s.
251	768.28(2), Shands Jacksonville Medical Center, Inc., Shands
252	Jacksonville HealthCare, Inc., and any not-for-profit subsidiary
253	which directly delivers health care services and whose governing
254	board is chaired by the President of the University of Florida
255	or his or her designee and is controlled by the University of
256	Florida Board of Trustees, which may act through the president
257	of the university or his or designee and whose primary purpose
258	is the support of the University of Florida Board of Trustees'
259	health affairs mission, shall be conclusively deemed
260	corporations primarily acting as instrumentalities of the state.
261	(e)(f)  The University of Florida Board of Trustees may is
262	authorized to provide to Shands Jacksonville HealthCare, Inc.,
263	and Shands Jacksonville Medical Center, Inc., and any of their
264	its not-for-profit subsidiaries and affiliates and any successor
265	corporation that acts in support of the board of trustees,
266	comprehensive general liability coverage, including professional
267	liability, from the self-insurance programs established pursuant
268	to s. 1004.24.
269	Section 2.  This act shall take effect July 1, 2011, and
270	shall apply to causes of action accruing on or after July 1,
271	2011.

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