Meetings
 
Agenda Item
Docket No. 17-1151
 
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RE:
Advisory opinion regarding whether Hospital Service District No. 1 of Iberia Parish d/b/a Iberia Medical Center may enter into contracts with Acadian Urgent Care Center, LLC.
Facts:
Hospital Service District No. 1 of Iberia Parish d/b/a Iberia Medical Center (IMC) recently purchased the land and hospital building formerly known as Dauterive Hospital, which is now referred to as IMC's North Campus. IMC has the opportunity to collect rental revenue by leasing its North Campus to Acadian. The lease would require Acadian to pay fair market value rent and provide that the use of the leased premises be restricted to the operation of an urgent care center.
In addition, IMC and Acadian would enter into a Purchased Service Agreement whereby IMC would provide certain laboratory and imaging services to Acadian for the operation of its urgent care center in exchange for fees in accordance with a fee schedule that is in line with fair market value for such services. Brock Romero, a nurse practitioner and appointed member of the Board of Commissioners of IMC, owns fifty percent of Acadian.

Law:
La. R.S. 42:1113B prohibits an appointed member of a board or commission, member of his immediate family, or legal entity in which he has a substantial economic interest from bidding on, entering into, or being in any way interested in a contract, subcontract or transaction under the supervision or jurisdiction of the public servant's agency.

La. R.S. 42:1123(18)(a) A licensed physician who is a member of a board of commissioners for any hospital service district authorized by Chapter 10 of Title 46 of the Louisiana Revised Statutes of 1950 located within a parish which has a population of one hundred twenty-five thousand or less from contracting with the hospital over which the board exercises jurisdiction, from subcontracting with another provider who contracts with such hospital, or from owning an interest in an entity that contracts with such hospital. However, such licensed physician shall recuse himself from participating in any transaction before the board relating to any contracts entered into by him, or by a provider with which he subcontracts, or by any entity in which he owns an interest, and permitted by this Paragraph.

(c) Any physician serving as a member of a hospital service district board or commission, if such hospital service district board or commission is required by law or by local ordinance, rule, or regulation adopted by a municipal or parish governing authority to have one or more physician members on its board or commission, from leasing space for the provision of health care services from a hospital under the jurisdiction of the board or commission for fair market value. However, such licensed physician shall recuse himself from participating in any transaction involving a lease agreement to which he is permitted by this Subparagraph to be a party

Recommendations:
Adopt the proposed advisory opinion.
Assigned Attorney: Jennifer Land
 
 
ATTACHMENTS:
Description:
2017-1151 Draft Advisory Opinion
2017-1151 AOR