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HomeMy WebLinkAboutHOSPITAL BOARD LETTER - Youth & Family Renewal CenterSTATE OF IDAHO OFFICE OF THE ATTORNEY GENERAL JIM JONES BOISE 88720 TELEPHONE ATTORNEY GENERAL 12081 334-2400 June 14, 1989 Sheila Kellogg, Administrator Ashton Memorial Hospital P.O. Box A -N Ashton, ID 83420-0370 RE: COUNTY HOSPITAL BOARD AND COUNTY HOSPITAL DISTRICT A.G. REFERENCE NO. 7901 Dear Ms. Kellogg: In your letter of February 10, 1989, you asked three questions in regard to your local hospital district and county hospital board: 1. Is any conflict of interest or other improper activity involved where members of a County Hospital Board also serve as members of the Hospital Taxing District for that same hospital? 2. Can a County hospital Board - Hospital Taxing District organized pursuant to law continue to operate the hospital facilities under their original mandate when those facilities are no longer being used as a hospital, but are being used as an emergency medical care unit and drug and alcohol rehabilitation center? Sheila Kellogg June 14, 1989 Page 2 3. Can a county Hospital Board - Hospital Taxing District organized pursuant to law continue to operate the hospital facilities under their original mandate when those facilities are no longer being used as a hospital, and are vacant for a period of more than 6 months? We believe that it would be improper for a person to attempt to hold a position on both the county hospital board and the county hospital. district board at the same time. To determine if both positions could be held by one person, it is necessary to determine whether the positions are compatible. That is, whether there is any inconsistency, conflict or tension between the two positions. Because of the hospital board and hospital district may compete for the same hospital, patients, fees and funds and would control the same property and serve the same functions, there certainly could be a conflict in attempting to hold a position on both boards at the same time. Under this analysis, the positions are incompatible and should not be held by the same person. McQuillin on Municipal Corporations, § 12.67. The functions of a county hospital board and a county hospital district are to provide hospitals for a local area. A hospital board operates as a county board, whereas the district is a separate legal entity. Its board is elected by the residents of the district. Idaho Code §§ 31-3601, et seq., and §§ 39-1318 through 39-1394. Idaho Code § 31-3601 states that when any county wishes to provide for and operate a hospital the county shall form a county hospital. board. Once a county hospital board is formed, Idaho Code § 3.1-3605 provides that the board shall continue until an election has been held by the county commissioners and a majority of the voters have specifically voted against the continuation of the hospital board. The statute requires formation of a hospital board and its continuation until an election is held to terminate it. We do not believe that the election for forming a hospital district would fulfill. the requirement to terminate the hospital board unless both the formation of the hospital district and the termination of the county hospital board are each specifically voted on at that election. Another important matter relates to art. 7, § 5, of the Idaho Constitution. This provision states in part that "duplicate Sheila Kello'gg June 14; 1989 Page 3 taxation of property for the same purpose during the same year, is hereby prohibited." Ordinarily, there cannot exist two municipalities exercising the same or essentially similar powers in the same territory at the same time. However, two municipal corporations may operate in the same territory at the same time for different purposes. City of Boise v. Bench Sewer District, Id. S.Ct. No. 16787, March 30, 1989; 1.989 Opin. No. 42. If, as we believe, the hospital board and the hospital district are held to serve the same functions for the same area, both may not tax in the same area at the same time. If these entities levy and collect such taxes, one or the other would have to give tip the ability to tax or both risk having their tax declared to be invalid. Unless one of the boards agrees to give up the tax, it is possible that the county commissioners or the State Tax Commission could refuse to certify the taxes or a lawsuit could be filed by a taxpayer. I£ it were determined that one was to continue to levy and collect this tax, this might factually end the matter since the other entity would have no funds available and would not be able to continue many of its required functions. In regard to your second question, you ask whether the use of hospital facilities for emergency medical care and a drug or alcohol rehabilitation center constitutes the operation of a hospital. Idaho Code § 39-1319 states that a hospital district is one to furnish general hospital services or medical clinical services to the general public and all other such services that may be necessary for the care of the injured, the maimed, sick, disabled or convalescent patients. The section then goes on to define medi-al clinic as a place devoted primarily to the maintenance and operation of facilities for outpatient, medical, surgical and emergency care of acute and chronic conditions or injury. Also, Idaho Code § 39-1391 specifically provides for emergency medical care in a hospital. No real definition of hospital appears in chapter 36 of title 31, Idaho Code. The term "hospital" has been defined as "an institution for the reception and care of the sick, wounded, infirm or aged persons. . . ." Bistline v. Bassett, 47 Idaho 66, 71, 272 P. 696 (1928). If the hospital has been used for emergency services or chronic care such as drug and alcohol treatment, under this definition it likely has been used as a hospital. These are hospital functions. Scerbo__'v. Bd. of Adjustment,_ City of Orange, Sheila Kellogg June 14, 1989 Page 4 297 A. 2d 207,_ 121 N. J. Super 378 (residential narcotic rehabilitation and treatment center is a hospital); Mobile Psychiatric Service, Inc. v. Employer Life Ins., 362 So.2d 244, Ala. Civ. App. (psychiatric facility with no surgical facilities is a hospital); Collis v. Zoning Hearing Bd. of City of Wilkes -Barr, 465 A.2d 53, 77 Pa. Comwel. 4 (term hospital may include, facility for treatment of any illness whether etiology is physical or mental). Was its license maintained or not? The Department of Health licenses hospitals for treatment of alcohol and drug abuse. IDAPA 16.02.1002.7.8. Thus, the hospital may have been continuously operated and there would be no question as to whether a lapse in functions would be of any importance. There are many cases to the effect that hospitals may be for treatment of chronic diseases. In answer to your third question, if a public hospital is vacant or ceases to function, its county board or district board may still carry on certain functions as required by law. However, the hospital may have to be relicensed under Idaho Code §§ 39-1301 through 39-1314 before it could again operate. As previously noted, the county hospital board continues until voted out of existence as provided by Idaho Code § 31-3605. Nothing in the law provides that a hospital district that ceases operation does not continue at least in an inactive form until again activated. Also, there is a specific procedure in Idaho law for terminating nonfunctional districts. Idaho Code §§ 63-4101, et seq. This procedure would have to be followed to dissolve the district. This letter is provided to assist you. The response is an informal and unofficial expression of the views of this office based upon the research of the author. Sincerely, WARREN FELTON Deputy Attorney General Intergovernmental Affairs WF/mkf