§ 3.11.020. Use of hospital funds.

Funds which comprise the hospital trailing liability fund may only be used for the specific purposes set forth in this chapter and in accordance with Indiana law. The hospital trailing liability fund represents that portion of the sale proceeds which has been specifically designated for the satisfaction of trailing hospital liabilities assumed by Porter County. Payments may only be made from the hospital trailing liability fund for the following purposes:

To pay and/or satisfy any indebtedness, trailing hospital liabilities, existing hospital obligations, or indemnification obligations as set forth in the asset purchase agreement by and among community health systems, the Porter County council, the Porter County board of commissioners, and the board of trustees of Porter Memorial Hospital, dated April 30, 2007. The Porter County board of commissioners and Porter County council may authorize the transfer of additional funds from the hospital sale proceeds fund to the hospital trailing liability fund in the event the latter fund is exhausted, or may elect to pay certain liabilities directly from the hospital sale proceeds fund.

As set forth above, the hospital trailing liability fund shall be used to satisfy claims including, but not limited to the following:

A.

Hospital associate workers' compensation claims existing prior to the closing date;

B.

Hospital associate health claims existing prior to the closing date;

C.

Litigation and settlement of hospital claims existing prior to the closing date;

D.

Satisfaction of hospital indebtedness and/or other obligations existing prior to the closing date;

E.

Contractual services (including accounting, consulting, and legal) related to the wind-up of hospital affairs and management/disposition of hospital liabilities; and

F.

Investment services related to the sale proceeds.

Any interest or earnings generated by the hospital trailing liability fund shall be transferred no less frequently than quarterly to the hospital interest fund.

Claims for payment from funds appropriated to the hospital trailing liability fund shall handled in a manner consistent with other claims involving public funds and in accordance with state law.

(Ord. 07-21 § 3)