NORTH CAROLINA GENERAL ASSEMBLY

1971 SESSION

 

 

CHAPTER 762

SENATE BILL 538

 

 

AN ACT TO AMEND G.S. 116 RELATING TO THE UNIVERSITY OF NORTH CAROLINA TO PROVIDE FOR THE ESTABLISHMENT OF A BOARD OF DIRECTORS FOR THE NORTH CAROLINA MEMORIAL HOSPITAL.

 

The General Assembly of North Carolina enacts:

 

Section 1.  Article 1 of Chapter 116 of the General Statutes of North Carolina is hereby amended by inserting a new section to be designated G.S. 116-11.1 and to read as follows:

"§ 116-11.1.  North Carolina Memorial Hospital Board of Directors. — (a) Composition. The Board of Trustees of the University of North Carolina is hereby directed to create a Board of Directors for the North Carolina Memorial Hospital consisting of twelve members of which nine shall be appointed by the Consolidated University Trustees. Three members ex officio of said Board shall be the University of North Carolina Vice Chancellor for Health Sciences, University of North Carolina Vice Chancellor for Business and Finance, and the Dean of the University of North Carolina Medical School, or successors to these offices under other titles with similar responsibilities. Nine members shall be appointed from the business and professional public-at-large, none of whom shall be Trustees of the University, and, thereafter, the nine appointive members shall select one of their number to serve as chairman. Members of this Board shall include, but not be limited to, persons with special competence in business management, hospital administration, and medical practice not affiliated with University faculty. Four members shall be appointed for three-year terms and five members for five-year terms. All subsequent appointments shall be for five-year terms. Board member vacancies shall be filled by the Trustees for the unexpired term. The Trustees may remove any member for cause. Board members, other than ex officio members, shall each receive such per diem and necessary travel and subsistence expenses while engaged in the discharge of their official duties as is provided by law for members of State boards and commissions generally.

(b)        Meetings and Powers of Board. The Board of Directors shall meet at least every 60 days and may hold special meetings at any time and place within the State at the call of its chairman. The Board of Directors shall make rules, regulations, and policies governing the management and operation of the North Carolina Memorial Hospital, consistent with basic State statutes and procedures, to meet the goals of education, research, patient care, and community service. The Board's action on matters within its jurisdiction are final, except that appeals may be made, in writing, to the Board of Trustees with copy of appeal to the University administration. The Board of Directors shall elect and may remove the Director of the Hospital. The Board of Directors may enter into formal agreements with the University of North Carolina at Chapel Hill, Division of Health Sciences, with respect to the provision of clinical experience for students and may also enter into formal agreements with the University of North Carolina at Chapel Hill for the provision of maintenance and supporting services needed by the Hospital.

(c)        Director of Hospital. The executive head of the North Carolina Memorial Hospital shall be the Director of the Hospital, who shall be appointed by the Board of Directors to serve at its pleasure. The Director shall administer the affairs of the Hospital subject to the duly adopted policies, rules, and regulations of the Board of Directors, including the appointment, promotion, demotion, and discharge of all Hospital personnel. The Director of the Hospital shall report to the Board of Directors quarterly or more often as required. The Director will serve as secretary to the Board of Directors.

(d)        Hospital Personnel. The Hospital shall establish a personnel office for personnel administration independent of the Central Personnel Office of the University of North Carolina at Chapel Hill.

(e)        Hospital Finances. The Hospital shall be subject to the provisions of the Executive Budget Act. There shall be established a Hospital business and budget office to administer the budget and financial affairs of the Hospital, independent of the Central Business and Financial Office of the University of North Carolina at Chapel Hill, except for cooperative reporting requirements. The Director of the Hospital, subject to the Board of Directors, shall be responsible for all aspects of budget preparation, budget execution, and expenditure reporting. Subject to the approval of the Advisory Budget Commission: all Hospital operating funds may be budgeted and disbursed through a Special Fund Code, all Hospital receipts may be deposited directly to the Special Fund Code; and General Fund appropriations for Hospital support may be budgeted in a General Fund Code under a single purpose, 'Contribution to Hospital Operations' and be transferable to the Special Fund Operating Code as receipts.

(f)         Hospital Purchases. The Hospital shall be subject to all provisions of Articles 3 and 3A of Chapter 143 of the General Statutes relating to the Department of Administration, Purchase and Contract Division. There shall be established a Hospital Purchasing Office independent of the Central Purchasing Office of the University of North Carolina at Chapel Hill to handle all purchasing requirements of the Hospital. The Purchase and Contract Division may enter into such arrangements with the Hospital Board of Directors as the Division may deem necessary in consideration of the special requirements of the Hospital for procurement of certain supplies, materials, equipments and services.

(g)        Hospital Property. The Hospital Board of Directors shall be responsible to the University Board of Trustees for the maintenance, operation, and control of the Hospital and its grounds."

Sec. 2.  This act shall become effective July 1, 1971.

In the General Assembly read three times and ratified, this the 6th day of July, 1971.