CODE OF VIRGINIA

(REPEALED EFFECTIVE OCTOBER 1, 2016) OPERATIONS OF MEDICAL CENTER (§ 23-50.16)

A. In enacting this section, the General Assembly recognizes that the ability of
Virginia Commonwealth University to provide medical and health sciences
education and related research is dependent upon the maintenance of high-quality
teaching hospitals and related health care and health maintenance facilities,
collectively referred to in this section as the Medical Center, and that the
maintenance of a medical center serving such purposes requires specialized
management and operation that permit the Medical Center to remain economically
viable and to participate in cooperative arrangements reflective of changes in
health care delivery.

B. Without limiting the powers provided in §§ 23-50.8 and 23-50.10, Virginia
Commonwealth University may create, own in whole or in part or otherwise control
corporations, partnerships, insurers or other entities whose activities will
promote the operations of the Medical Center and its mission, may cooperate or
enter into joint ventures with such entities and government bodies and may enter
into contracts in connection therewith. Without limiting the power of Virginia
Commonwealth University to issue bonds, notes, guarantees, or other evidence of
indebtedness under subsection C in connection with such activities, no such
creation, ownership or control shall create any responsibility of the
University, the Commonwealth or any other agency thereof for the operations or
obligations of any entity or in any way make the University, the Commonwealth,
or any other agency thereof responsible for the payment of debt or other
obligations of such entity. All such interests shall be reflected on the
financial statements of the Medical Center.

C. Notwithstanding the provisions of Chapter 3 (§ 23-14 et seq.) of this title,
Virginia Commonwealth University may issue bonds, notes, guarantees, or other
evidence of indebtedness without the approval of any other governmental body
subject to the following provisions:

   1.  Such debt is used solely for the purpose of paying not more than fifty
   percent of the cost of capital improvements in connection with the operation
   of the Medical Center or related issuance costs, reserve funds, and other
   financing expenses, including interest during construction or acquisition and
   for up to one year thereafter;

   2.  The only revenues of the University pledged to the payment of such debt
   are those derived from the operation of the Medical Center and related health
   care and educational activities, and there are pledged therefor no general
   fund appropriation and special Medicaid disproportionate share payments for
   indigent and medically indigent patients who are not eligible for the Virginia
   Medicaid Program;

   3.  Such debt states that it does not constitute a debt of the Commonwealth or
   a pledge of the faith and credit of the Commonwealth;

   4.  Such debt is not sold to the public;

   5.  The total principal amount of such debt outstanding at any one time does
   not exceed twenty-five million dollars;

   6.  The Treasury Board has approved the terms and structure of such debt;

   7.  The purpose, terms, and structure of such debt are promptly communicated
   to the Governor and the Chairmen of the House Appropriations and Senate
   Finance Committees; and

   8.  All such indebtedness is reflected on the financial statements of the
   Medical Center.Subject to meeting the conditions set forth above, such debt
   may be in such form and have such terms as the board of visitors may provide
   and shall be in all respects debt of the University for the purposes of §§
   23-23, 23-25, and 23-26.

HISTORY: 1994, c. 621.