Hospital districts may apply for State loans to pay for medical injury tort
claims or judgments that are in excess of $300,000. Such hospital districts
shall meet all of the following:
(1) Be the
Chowchilla Memorial Hospital District, or a hospital district which has entered
into a joint powers agreement with the Chowchilla Memorial Hospital
(2) Be located in a
county that has areas that are designated as rural medically undeserved areas
by the Health Manpower Policy Commission, pursuant to Section 1188.4, Chapter
4, Part 4, Health and Safety Code (Rural Health Services, October
(3) Have a licensed bed
capacity of less than 100 beds.
Have submitted to the Department on or before September 8, 1977, a statement
which includes the following:
utilization review plan or its equivalent which has been officially adopted by
the governing body of the hospital districts and which:
1.Provides for the participation of the
entire medical staff in a review committee.
2.Provides that at least one committee member
is a nonphysician health professional.
3.Prohibits the participation on the
committee of any person who has a financial interest in the hospital.
4.Prohibits any person from participation in
the review of any care in which that person has been professionally
5.Provides for at least
monthly meetings of the review committee.
6.Provides for the retention for at least
seven years of records of the review committee's activities, including the
number and types of cases received, the findings and recommendations, and the
subsequent actions taken.
(B) Proof of either insurance against medical
injury liability claims or judgments up to $300,000 or the establishment of a
reserve account in that amount, along with a plan for the investment of such
(C) A written plan for
the preliminary investigation of medical injury claims and for procurement of
legal counsel when indicated.
written plan to repay the State loan within forty (40) years detailing the
resources available to the hospital district including taxing powers.