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Indicates Matter Stricken
Indicates New Matter
AMENDED
May 25, 1999
H. 3522
S. Printed 5/25/99--S.
Read the first time May 4, 1999.
TO MAKE FINDINGS OF LEGISLATIVE INTENT WITH RESPECT TO THE SPECIAL NEEDS OF THE MEDICAL UNIVERSITY HOSPITALS AND CLINICS TO MAINTAIN MAXIMUM FLEXIBILITY IN MANAGEMENT AND OPERATIONS; TO AMEND SECTION 59-123-60, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO ORGANIZATION AND POWERS OF THE BOARD OF TRUSTEES OF THE MEDICAL UNIVERSITY OF SOUTH CAROLINA, SO AS TO PROVIDE THAT THE BOARD OF TRUSTEES OF THE MEDICAL UNIVERSITY OF SOUTH CAROLINA SHALL CONSTITUTE THE MEDICAL UNIVERSITY HOSPITAL AUTHORITY FOR THE MANAGEMENT AND OPERATION OF THE MEDICAL UNIVERSITY HOSPITALS AND CLINICS IN ORDER TO PROVIDE A HIGH LEVEL OF MANAGEMENT AND OPERATIONAL FLEXIBILITY TO THE AUTHORITY AND REMOVE THE HOSPITALS AND CLINICS FROM CENTRAL STATE PROGRAM REGULATION OF PROCUREMENT, REAL PROPERTY, AND HUMAN RESOURCES, TO SET FORTH THE DUTIES AND POWERS OF THE BOARD OF TRUSTEES AS THE MEDICAL UNIVERSITY HOSPITAL AUTHORITY; TO AMEND SECTION 8-11-260, AS AMENDED, RELATING TO EXEMPTIONS FROM STATE PERSONNEL POLICIES AND REQUIREMENTS, SO AS TO EXEMPT EMPLOYEES OF THE HOSPITALS AND CLINICS FROM BUDGET AND CONTROL BOARD PERSONNEL ADMINISTRATION; TO AMEND SECTION 8-17-370, AS AMENDED, RELATING TO EXEMPTIONS FROM STATE EMPLOYEE GRIEVANCE PROCEDURES, SO AS TO EXEMPT MEDICAL UNIVERSITY HOSPITAL AND CLINIC EMPLOYEES FROM THE STATE EMPLOYEE GRIEVANCE ACT; AND TO AMEND SECTION 11-35-710, AS AMENDED, RELATING TO EXEMPTIONS FROM THE STATE PROCUREMENT CODE, SO AS TO ADD AN EXEMPTION TO THE SOUTH CAROLINA CONSOLIDATED PROCUREMENT CODE FOR THE MEDICAL UNIVERSITY HOSPITALS AND CLINICS.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. The General Assembly finds that the:
(1) Medical University hospitals and clinics are required to provide critical medical and hospital care while at the same time serving the role of teaching hospitals and clinics supporting the training of medical professionals;
(2) Medical University hospitals and clinics operate in a highly competitive health care environment and of necessity must have maximum flexibility in their management and operations to realize greater efficiencies, enhance revenues and reduce expenditures in order for the hospitals and clinics to continue to succeed in their critical and comprehensive public mission;
(3) board of trustees of the Medical University of South Carolina should have greater management and operational autonomy to achieve these goals.
SECTION 2. Section 59-123-60 of the 1976 Code is amended to read:
"Section 59-123-60. (A) The board of trustees shall elect one of its number to be chairman and is authorized to elect a university president, one or more vice-presidents, and a secretary, prescribe their duties and terms of office, and fix their compensation. It shall elect teachers of professorial rank in the various colleges which make up The Medical University of South Carolina and other officers and employees as may be necessary for the proper conduct of the university and fix their compensation, the fees and charges of students, and the rules for the government of the university. The board of trustees also has the following powers:
(1) to make bylaws and regulations considered expedient for the management of its affairs and its own operations not inconsistent with the Constitution and laws of this State or of the United States;
(2) to confer the appropriate degrees in medicine, dental medicine, pharmacy, nursing, health related professions, and graduate studies in related health fields upon students and other persons as in the opinion of the board of trustees may be qualified to receive them.
(B) The Board of Trustees of the Medical University of South Carolina is the governing body of the Medical University Hospitals and Clinics (hereinafter 'Hospital'). Whenever the board functions in its capacity as the governing authority of the hospital, the board of trustees is constituted and designated as the Medical University Hospital Authority. The board, as the authority, has the full power and authority to manage the business, operations and affairs of the hospital and to take any action the board may consider advisable, necessary, or convenient in carrying out its duties. These powers specifically include, but are not limited to:
(1) have perpetual succession as a corporation;
(2) sue and be sued;
(3) adopt, use, and alter a corporate seal;
(4) make and amend bylaws for its governance consistent with the purposes of this chapter;
(5) make bylaws for the management, regulation and operation of the hospital;
(6) make contracts and guarantees, to incur liabilities, to issue its notes, bonds and other obligations, and secure any of its obligations by mortgage or pledge of any of its property, or income in a manner to be in the best interest of the hospital; any guarantee or indebtedness of the hospital or of the Medical University Hospital Authority shall not create an obligation of the State, nor shall such guarantee or indebtedness be considered a debt against the general revenue of the State;
(7) purchase, receive, lease or otherwise acquire and own, hold, improve any legal or equitable interest in property wherever located; these activities are exempt from the authority and approval of the Budget and Control Board; provided the Budget and Control Board is notified of all transactions that have been entered involving real property on a quarterly basis;
(8) sell, convey, lease, exchange, and otherwise dispose of all, substantially all, or a major part of its property subject to the authority and approval of the Budget and Control Board. These activities are exempt from the South Carolina Consolidated Procurement Code and regulations, and general laws governing disposal of surplus government property.
(9) receive contributions, donations, and payments and invest and disburse its funds;
(10) construct, operated, and maintain the hospital and related premises, buildings and facilities, and infrastructure;
(11) make contracts and execute all instruments considered by the authority to be advisable, necessary or convenient for the carrying out of its activities and affairs; these contracts are exempt from the South Carolina Procurement Code and regulations; provided, however, the authority must adopt a procurement process which will govern procurements by the authority and a copy of the procurement process must be filed with the Budget and Control Board for its review and approval;
(12) delegate its power and authority related to the management and operations of the hospital to any agent, public or private, and to establish any committee in order to accomplish the purposes of the hospital;
(13) appoint such officers, employees, personnel, and agents of the hospital and define such duties, and fix their compensation in such manner as necessary and convenient to carry out the hospital's activities and affairs; the appointments, duties and compensation of personnel and employees are exempt from Budget and Control Board personnel administration and the State Employee Grievance Act; provided, however, the authority shall adopt a grievance procedure to govern personnel and employees of the hospital and this grievance procedure must be filed with the Budget and Control Board; all personnel employed at the hospital are employees-at-will and are not considered state employees except for eligibility for participation in the South Carolina Retirement System; the State Health Insurance Group Plans; and pursuant to the South Carolina Tort Claims Act;
(14) make pension payments to the South Carolina Retirement Systems on behalf of personnel or employees employed at the hospital who qualify in the same manner as other state employees in the executive branch of government;
(15) pay contributions to the Office of Insurance Services for health and dental plans on behalf of personnel employed at the hospital who qualify in the same manner as other state employees in the executive branch of government;
(16) transact and conduct any lawful activity that will assist the authority in carrying out its responsibilities related to the hospital;
(17) receive, expend and control under its own name and account any appropriated funds, federal funds, donations, and grants made available to the hospital;
(18) conduct an annual fiscal audit by certified public accountants selected by the authority, who shall review the accounts of the hospital and report such findings of the audit to the Governor and the General Assembly in accordance with generally accepted accounting principles;
(19) prepare and submit an annual budget to the Budget and Control Board for review;
(20) establish management controls and staffing of personnel as the authority deems most appropriate for the prudent conduct of the activities and affairs of the hospital;
(21) establish such not for profit corporations as the authority considers necessary, advisable or convenient to assist the authority in carrying out its functions;
(22) upon review of the audit report required in 59-123-60 (B) (18), the Legislature by Joint Resolution or the Governor by Executive Order may request audits to be completed by the State Auditors Office and/or the Legislative Audit Council. Based on the findings reported in the audit required in 59-123-60 (B) (18), by the State Auditors Office or by the Legislative Audit Council, the Legislature, by Joint Resolution may require intervention by the Budget and Control Board for the purposes of rectifying any material findings reflected in the audits;
(23) a trustee serving on the Board of Trustees of the Medical University Hospitals and Clinics, who has been found guilty of malfeasance, misfeasance, incompetence, absenteeism, conflict of interest, misconduct, persistent neglect of duty in office, or incapacity shall be subject to removal by the governor upon any of the foregoing causes being made to appear to the satisfaction of the Governor. But before removing any such trustee, the governor shall inform him in writing of the specific charges against him and give him an opportunity on reasonable notice to be heard. The Governor shall appoint a successor to fill the vacancy created by his removal. The successor appointed by the Governor is to serve in that position until a successor is elected and qualified in accordance with 59-123-50;
(24) the Medical University Hospitals and Clinics shall offer and provide to the Medical University of South Carolina the services necessary for the training and education of health professionals so long as the services are requested and required by the University;
(25) beginning in fiscal year 2000-2001 state appropriations to the Medical University of South Carolina for support of the Medical University Hospitals and Clinics shall be redirected to the Department of Health and Human Services. These funds shall be used as match funds for the Disproportionate Share for Hospitals federal program. Any excess funding may be used for hospital base rate increases. The Department of Health and Human Services shall transfer and amount equal to the 1999-2000 appropriation for the Medical University Hospitals and Clinics in addition to any other funds that are available to the Medical University Hospitals and Clinics through the State Medicaid Program inclusive of the Disproportionate Share program. The Medical University Hospital and Clinics shall continue to be a health provider for the citizens of South Carolina and the clinical site for the education and training programs of the Medical University of South Carolina."
SECTION 3. Section 8-11-260 of the 1976 Code, as last amended by Act 452 of 1994, is further amended by adding a new item to be appropriately lettered to read:
"(__) Employees of the Medical University Hospitals and Clinics."
SECTION 4. Section 8-17-370 of the 1976 Code as last amended by Act 284 of 1996, is further amended by adding a new item to be appropriately numbered which shall read:
"(__) Employees of the Medical University Hospitals and Clinics, provided the Medical University Hospital Authority has promulgated an employee grievance plan in accordance with its enabling provision."
SECTION 5. Section 11-35-710 of the 1976 Code, as last amended by Act 153 of 1997, is further amended by adding a new item to be appropriately lettered to read:
"(__) Medical University Hospitals and Clinics, provided the Medical University Hospital Authority has promulgated a procurement process in accordance with its enabling provision."
SECTION 6. If any term or provision of a section of this act is found to be illegal or unenforceable, the remainder of this act is to remain in full force and effect and the illegal or unenforceable term or provision is deemed severable from the other provisions of this act.
SECTION 7. This act takes effect upon approval by the Governor.
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