Untitled Texas Attorney General Opinion

. The Attorney General of Texas MAYTOX Docembat 21. 1984 * nay QenOf8l Eonorablc Ed &ward Oplnioo No. JM-258 . chairman Sub-comittec on No=inrltiona Re: methar a ho*pital district Texas State Senate created bg,chaptar 298. Acta 1963, P. 0. Box L2068, Capi’rol Station Fifty-eighth Legialatura, Austin. Texaa 78711 laaac a portion of it4 phyaiz: plant to private physiciana Id. TX. 752024525 Dear Senator Howard: n424B44 The Titus Counly Hospital Diatrlct is. a county-wide hospital !wAlbwa AW., Suit. 150 district created by chapter 298. Acta 1963, of the Fifty-eighth PSSO, TX. 79BOS2793 Legislature. under authority of article IX. section 9 of the Texas 5 Xk34B4 Conaritution. You r,ak whether this hospital district may lease a portion of its phyalcrl plant to private physicians for a term of leas 31 Trr*r. wte 700 than one year, provtded lease revenue4 are paid to the hoapital*a ton. TX. 77002.3111 general operating fund. Ftom your question, ve asaume that the 3 5B55 physicians would be !.easlng the facilftiea for offices in which to engage in .the private prsctice of mediclna. It la our opinion that the Titui County IMpit Dlatrict lacka authority to leaae Its I Srordway. Suite 312 L ccl TX. 754014470 facilities for that I~urpoae. M47-5225 A hospital district derive6 it6 power from the constitution and the act creating the district. See Attorney General Opinion n-171 Y N. Tenth. Suite B c*llen. TX. 7aw1.lw5 (1967). A special pw:poae diatric~y “exarci nly the pmers that :2aB24547 are expressly deleg#lted to it by the Legislat or which exist by XI Maln flue. Bull. 4W .I mtonlo. TX. 752053757 1 2254191 purpoa~” for which the district la created and that powers vhlch are not upreaaed and are “merely eonvanient or uaeful” may not be conducted by the district. -ld. at 947. Article IX, aecclon 9 of the constitution provides, in pare: Sec. 9. The Legislature may by law provide for the crea tlcnt establishment, maintenance and operation cf hospital districts composed of one or more coun~Les or all or any part of one or more counties with povar to issue bonds for tha purchase, -construction. acquisition, repair or renovatlol~ of buildings and improvement4 and p. 1148 Nonotable Cd Howard - Page 2 (JH-258) \ equipping same, for~hoapital purposes; providing for the transfer to the hoaoltsl district of the title to any land, build&, improvemLa and equipment located vholly within the district vhich may be jointly or r~eparately owned by any city, Con! or county, prcwiding that any diarricr so created shall assume full responsibiliLy for providing medical ax;1 hospital care for ice needy i inhabltan~a and. . .-. (Emphasis added). As originally enacted and subsequently amended, chapter 298, Acts 1963, Fifth-eighth Legislature, in pertinent part, provides: SecUou 1. -- In accordance with the provisiona of Article IX, Seciion 9, Constitution of the Stare of Texas, thi!L Act shall be operative so as (0 authorize the creation, establishment, maln- renance and operation of a Hospital District vithin rhe State of Texas, to be known as Titus County Hospital District, and the boundaries of said District aha:;I. be cosrrensive with the boundaries of Titus County (hereinafter referred to as the ‘County’)!, and said District shall have the powers and res~~onsibiliries provided by the aforesaid Constituri&al provision. Sec. 2. That said District hereby provided for shall assume full ?esponaibility for providing medlcal and hoapitai care for the needy residing within the Diarrict.-. . . . . , . lc. 14. Neith@!r the County nor any city c# eln shall. aftl!:r rhe Hospital District has been organized in pursuance of this Act, levy any tax for hospital purposes; and such Hospiral District shall ,be deemed to have assumed full responsibiliry for ‘ihe furnishing of medical and hospital care for eGe needy and indigent persons residing In said Hc~pital District from rhe date that taxes are Fallected for the Hospital District. (Emphasis: added). The Titus County Hospit:ll. District is expressly authclrired and directed by article IX, secciisr~ 9 of the ccnscituciw and the enabling statute to acquire and manage physical plant facilities for hospital purposes and to provide medical and hospital care for the needy residing in the district. Im~ll.ied powers of the district must further the purposes for which the (district is created, namely. hospital purposes and medical care of needy inhabitants. p. 1149 Ronorsbls Ed Howard - Page 3 (JH-258) Us concluds that ths Titur County liospital District derives from the constitution and enabling atstuts no express or implisd pwer to lease on any terms s portion of its hospital property for use se private offices for private physicians. This off Ice previously concluded that svss when a comty had statutory .autbority to Isass a county hospital to be opsrat,cd as s hospital, ths county did not thereby acquire authority to 11!ass portions of Its hospital for use 88 private medical offices. see Lttornsy General Opinion g-16 (1973). See also Attorney Censralj,:!nion H-31 (1973). Cf. Sullivan v. Andrws County, 517 S.W.2d 410 (Tu. Civ. App. - tl-%so 1974, vrit rsf’d n.r.s.1 (express ata tutory suthority to lease medical facilities). But dst Oak L,wn Preservation Society v. Board of Managers of Dallas County Roap:ii:al District, 566 S.W.Zd 315. 317 (TsX. civ. App. - Dallas 1978, vrit :;!f’d n.r.e.) (validity of lsass betveen hospital district and county fqxr uas of former hospital as jail not an issue determined on appeal); Attorney General Opinion M-912 (1971) (hospital district vlth author.lty to contract vith private hospital and doctors for laboratory testing to be performed vlth hospital laboratory equipment). Whsrc!es laboratory testing ,is a hospital function, offices for the private practice of medicine are not “hospital purposes” or the prwision of “medical or hospital cars for the needy .” The povers of the hospit.a.1 district in question are measured by the terms of article IX, set tion 9 and chapter 298, of the Plfty- eighth Legislature. which cwatsd the district. neither of vhlch contains an sxpress or implied grant of authority to lsass hospital fscilitles for use as l nythirla, other than hospital purposes and the provision of medical hospital cars for its needy inhabitants. 2-U M M A R Y The Titus County Hospital District has neither sxprsss nor implied authority to lease part of It: physical plant to private physicians for use as private medical offices. JIM MATTOX Attorney General of Texas TOMGREEN First Assistant Attorney Gene::al DAVID R. RICHARDS Executive Assistant Attorney I:ti?nsral