Sec. 4.

(1) The trustees shall within 10 days after their appointment qualify by taking the oath of civil officers, and organize as a board of hospital trustees by electing 1 of the trustees as chairperson, 1 as secretary, and any other officer as the board considers necessary, but no bond is required of a trustee. The county treasurer of the county in which the hospital is located is the treasurer of the board of hospital trustees. The treasurer shall receive and pay out all the money under the control of the board as ordered by the board, but the treasurer shall not receive compensation from the board. Each trustee may receive compensation as established by the county board of commissioners for the trustee's services in attending meetings of the board, and not to exceed 10 cents per mile for each mile necessarily traveled in going to and returning from the place of meeting each day the board is in session, when the rate of compensation and mileage as provided in this section is approved by the county board of commissioners. Each trustee may receive reimbursement for any other necessary expenses as are allowed by the county board of commissioners.

(2) The board of hospital trustees shall make and adopt bylaws and rules for its own guidance and for the government of the hospital as considered expedient for the economic and equitable conduct thereof not inconsistent with this act, and the ordinances of the city or town in which the public hospital is located.

(3) The board of hospital trustees shall have the exclusive control of the expenditure of all money collected to the credit of the hospital fund, and of the purchase of sites, the purchase or construction of any hospital building, and of the supervision, care, and custody of the grounds, rooms, or buildings purchased, constructed, leased, or set apart for that purpose. All money received for the hospital must be deposited in the treasury of the county to the credit of the hospital fund, and paid out only upon warrants drawn by the auditor of the county or by the county clerk in counties not having a county auditor upon the properly authenticated vouchers of the hospital board.

(4) The board of hospital trustees shall appoint a chief executive officer, who is the board's direct representative in the management of the hospital. The board of hospital trustees may appoint an attorney to serve as its legal advisor.

(5) The board shall in general carry out the spirit and intent of this act in establishing and maintaining a public county hospital with equal rights to all and privileges to none. The board of hospital trustees shall hold meetings at least once each month and keep a complete record of all its proceedings. Four members of the board constitute a quorum for the transaction of business of the board. One of the trustees shall visit and examine the hospital at least twice each month and the board shall, no later than the first week in October of each year, file with the county board of commissioners a report of its proceedings with reference to the hospital, and a statement of all receipts and expenditures during the year; and shall at such times certify the amount necessary to maintain and improve the hospital for the ensuing year.

(6) A trustee shall not have a personal pecuniary interest either directly or indirectly in the purchase of any supplies, equipment, and other materials of a cost more than $500.00 per year for the hospital, unless the supplies, equipment, and other materials are purchased by competitive bidding.

(7) Each board constitutes a body corporate and may sue and be sued.

History: 1913, Act 350, Eff. Aug. 14, 1913 ;-- CL 1915, 10861 ;-- Am. 1923, Act 11, Imd. Eff. Mar. 28, 1923 ;-- CL 1929, 7066 ;-- Am. 1933, Act 219, Eff. Oct. 17, 1933 ;-- Am. 1945, Act 251, Eff. Sept. 6, 1945 ;-- CL 1948, 331.54 ;-- Am. 1961, Act 68, Eff. Sept. 8, 1961 ;-- Am. 1971, Act 167, Imd. Eff. Nov. 30, 1971 ;-- Am. 2018, Act 314, Imd. Eff. June 29, 2018 Compiler's Notes: For provisions of section 9 of Act 177 of 1925, referred to in this section, see MCL 332.159.