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AMENDED--NOT PRINTED IN THE HOUSE
Amt. No. 341A (Doc. No. Council\kgh\Amend\15805HTC99.doc)
June 3, 1999
H. 3522
S. Printed 5/27/99--H.
Read the first time February 11, 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.
Amend Title To Conform
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 flexibility 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) All revenues of the Medical University of South Carolina, the Medical University Hospital, any funds transferred to the Medical University for a practice plan for faculty established in the College of Medicine, and any for-profit corporation established by the practice plan are considered public funds and must therefore be expended for a public purpose as that purpose is defined in the applicable state law and regulations. For purposes of this subsection, and in addition to all other applicable laws and regulations, public purposes also do not include expenditures for purchasing gifts, making political or other contributions, and reimbursing officers' and employees' travel and subsistence expenses in excess of those authorized by law for state employees away from their job site on official business.
(C) The provisions of the Freedom of Information Act apply to any practice plan entity established for the faculty whether or not for profit, except that access is not allowed under this section to patient records or insurance information with respect to patients.
(D) No member of the Medical University Board, officers in the administration of the university, including deans of the various colleges, or a current or former president of the Medical University may own any interest in businesses or property acquired by the Medical University or any of its affiliates or subsidiaries nor may the aforementioned officers have a financial interest in a business contracting or subcontracting with the Medical University or any of its subsidiaries or affiliates.
(E) 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 powers granted the Board of Trustees of the Medical University of South Carolina under this chapter and the following powers:
(1) make and amend bylaws for its governance consistent with the purposes of this chapter;
(2) make bylaws for the management, regulation, and operation of the hospital;
(3) make contracts and have, hold, purchase, and lease real estate and personal property for corporate purposes; and sell and dispose of personal property and any buildings that are considered by it as surplus property or no longer needed and any buildings that it may need to do away with for the purpose of making room for other construction. These contracts are exempt from the South Carolina Consolidated Procurement Code and Regulations, but the authority must adopt a procurement policy requiring competitive bidding for construction contracts, which must be filed with and approved by the State Budget and Control Board;
(4) receive contributions, donations, and payments and invest and disburse its funds; provided, however, that these funds are funds which must be used for public purposes, and further, that the authority may not use or authorize the use of funds, property, or time to influence the outcome of an election;
(5) construct, operate, and maintain the hospital and related premises, buildings and facilities, and infrastructure;
(6) appoint such officers, employees, personnel, and agents of the hospital and define such duties and fix their compensation in such manner as is necessary to carry out the hospital's activities and affairs; the leave, holiday, and vacation policies of the authority's personnel and employees are exempt from Budget and Control Board personnel policies and applicable laws as they specifically relate to those policies; all personnel employed at the hospital are exempt from the provisions of Article 5, Chapter 17 of Title 8, the State Employee Grievance Procedure, but the board shall adopt a grievance procedure substantially similar to the provisions of that article to govern personnel and employees of the hospital, and this procedure must be filed with and approved by the State Budget and Control Board. All employees of the hospital must be furnished a copy of this grievance procedure; all personnel employed at the hospital are employees-at-will and are state employees for purposes of eligibility for participation in the South Carolina Retirement System, the State Health Insurance Group plans, and pursuant to the South Carolina Tort Claims Act;
(7) 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;
(8) 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;
(9) receive, expend, and control under its own name and account any appropriated funds, federal funds, donations, and grants made available to the hospital; provided, however, that these funds are funds which must be used for a public purpose, and further that the authority may not use or authorize the use of funds, property, or time to influence the outcome of an election;
(10) 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 auditing standards;
(11) prepare and submit an annual budget to the General Assembly and the Budget and Control Board for review;
(12) 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; provided, that they establish an internal audit function that would report directly to the authority;
(13) establish such not-for-profit corporations as the authority considers necessary to assist the authority in carrying out its functions; provided, that any entity created pursuant to this subsection is considered to be an entity of the authority and subject to all laws and regulations applicable to the authority under this section. The formation of for-profit corporations by the authority is strictly prohibited;
(14) upon review of the audit report required in Section 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 Section 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;
(15) a trustee serving on the Board of Trustees of the Medical University Hospitals and Clinics, a member of the Medical University Board, an officer in the administration of the university, including deans of the various colleges, the president of the Medical University, or any other officer of the hospital or any of its affiliates who have 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 person, 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 Section 59-123-50;
(16) 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;
(17) 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 Medical University Hospitals 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. 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 4. This act takes effect upon approval by the Governor or upon adoption by the Board of Trustees of the Medical University of South Carolina of a resolution endorsing the provisions of this act, whichever occurs later.
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