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2018 Georgia Code 31-7-77 | Car Wreck Lawyer

TITLE 31 HEALTH

Section 7. Regulation and Construction of Hospitals and Other Health Care Facilities, 31-7-1 through 31-7-412.

ARTICLE 4 COUNTY AND MUNICIPAL HOSPITAL AUTHORITIES

31-7-77. Prohibition on for-profit projects; rates and charges; utilization of revenues to pay certain obligations.

  1. No authority shall operate or construct any project for profit. It shall fix rates and charges consistent with this declaration of policy and such as will produce revenues only in amounts sufficient, together with all other funds of the authority, to pay principal and interest on certificates and obligations of the authority, to provide for maintenance and operation of the project, and to create and maintain a reserve sufficient to meet principal and interest payments due on any certificates in any one year after the issuance thereof. The authority may provide reasonable reserves for the improvement, replacement, or expansion of its facilities or services.
  2. Notwithstanding subsection (a) of this Code section or any other provisions to the contrary, a joint hospital authority established pursuant to Code Section 31-7-72 which operates a hospital containing more than 900 licensed beds shall only utilize revenues to pay principal and interest on certificates and obligations of the authority, to pay pension plan obligations of the authority existing as of January 1, 2013, and for funding projects leased by the authority to a lessee pursuant to a contract entered into in accordance with paragraph (7) of Code Section 31-7-75; provided, however, that no more than 1 percent of revenues shall be utilized to pay for personnel costs for employees or contractors of the authority.

(Ga. L. 1941, p. 241, § 6; Code 1933, § 88-1806, enacted by Ga. L. 1964, p. 499, § 1; Ga. L. 2013, p. 1037, § 1/SB 62.)

The 2013 amendment, effective May 7, 2013, designated the existing provisions as subsection (a); and added subsection (b).

JUDICIAL DECISIONS

Cited in Bradfield v. Hospital Auth., 226 Ga. 575, 176 S.E.2d 92 (1970); Cox Enters., Inc. v. Carroll City/County Hosp. Auth., 247 Ga. 39, 273 S.E.2d 841 (1981); United States v. Hosp. Auth. of Charlton County (In re Hosp. Auth. of Charlton County), 56 Bankr. Ct. Dec. (LRP) 220 (Bankr. S.D. Ga. July 3, 2012).

OPINIONS OF THE ATTORNEY GENERAL

Authority's right to operate and charge for ambulance service.

- Hospital authority has right to operate ambulance service for transportation of patients to and from the authority's hospital and may make charges for such service. 1965-66 Op. Att'y Gen. No. 66-176.

RESEARCH REFERENCES

Am. Jur. 2d.

- 40A Am. Jur. 2d, Hospitals and Asylums, § 3.

C.J.S.

- 41 C.J.S., Hospitals, § 21 et seq.

Cases Citing O.C.G.A. § 31-7-77

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Richmond Cnty. Hosp. Auth. v. Richmond Cnty., 336 S.E.2d 562 (Ga. 1985).

Cited 40 times | Published | Supreme Court of Georgia | Nov 21, 1985 | 255 Ga. 183

...that the lessee will not in any event obtain more than a reasonable rate of return on its investment in the project, which reasonable rate of return, if and when realized by such lessee, shall not contravene in any way the mandate set forth in Code Section 31-7-77 specifying that no authority shall operate or construct any project for profit." (Emphasis supplied.) The appellees contend that this provision requires that the lessee make an investment....
...We see nothing to prohibit such lease as long as the lease complies with the statutory stipulations, such as the promotion of the public-health needs of the community and the operation of the project with a reasonable rate of return, to comply with the mandate of OCGA §§ 31-7-75 (7), 31-7-77 that the projects not be operated for profit....
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Tift Cnty. Hosp. Auth. v. MRS of Tifton, Georgia, Inc., 335 S.E.2d 546 (Ga. 1985).

Cited 7 times | Published | Supreme Court of Georgia | Oct 9, 1985 | 255 Ga. 164

...39 *166 (2) (325 SE2d 377) (1985). The authority contends that its power to operate a store for the renting and selling of durable medical equipment to the general public arises expressly or by implication from the provisions of OCGA §§ 31-6-2; 31-7-5; 31-7-51; 31-7-71; 31-7-75; 31-7-77; 31-7-96 and 31-7-150....