A. Upon the appointment of a Board of Control to manage a county hospital, the members of the Board of Control shall within ten (10) days after their appointment qualify by taking an oath in the form required of county officers, and organize the Board of Control by the election of one member as chair, one member as vice-chair, one member as secretary and one member as treasurer; however, the secretary and treasurer may be the same person, and electing or appointing such other officer or officers as the Board may deem necessary, but only the treasurer shall be bonded. The proportional share of the county blanket bond premium for such person shall be paid out of the county hospital fund. Every one (1) year thereafter, at the first meeting of the Board of Control following the appointment or reappointment of board members, a reorganization meeting shall be held and officers selected as hereinbefore stated. Such Board of Control shall hold meetings at least once each month, shall keep a complete record of all its proceedings, and a majority of the Board shall constitute a quorum for the transaction of business. The district attorney, or his or her assistant, shall serve as attorney for the Board of Control without additional compensation; however, the Board may employ other counsel and pay for such service from the general funds of the hospital, provided a majority of the Board shall determine such employment to be in the best interest of the hospital. No member of the Board of Control shall have a personal pecuniary interest either directly or indirectly in any purchases or contracts for the hospital unless the same are purchased or awarded by competitive bids.

B. The Board of Control shall in management of a county hospital:

1. Have exclusive control, supervision, care and custody of the grounds, property, and buildings purchased, constructed, leased, or set apart for such hospital purposes;

2. Employ a competent administrator as the executive officer of the hospital and fix his or her compensation. The administrator shall be covered by the county blanket bond and the proportional share of the premium shall be paid out of the county hospital fund;

3. Establish the fiscal year of the hospital and, not later than ninety (90) days after close of the fiscal year, file with the county clerk of the county a report of the proceedings with reference to such hospital and a statement of all receipts and expenditures during the preceding fiscal year, and shall adopt a budget, such budget to show the amount necessary to maintain and improve the hospital for the ensuing fiscal year. A complete audit to be required at the end of each fiscal year is to be performed by a licensed accountant;

4. Cause not less than one of its members to visit and inspect the hospital at least once each month. It shall be the duty of the Board of Control to admit, upon recommendation of a physician, without expense to the patient, all county charity patients certified to be such by the Board of Control, in need of medical or surgical treatment; and all other patients admitted to the hospital for treatment shall be charged a just and reasonable price for their medical and surgical treatment while in the custody of the hospital;

5. Adopt a policy of admission of patients for the county hospital;

6. Have authority to authorize the hospital to be a member of and maintain membership in any local, state, or national group association organized and operated for the promotion of the public health and welfare or the advancement of the efficiency of hospital administration and in connection therewith to pay dues and fees therefor from the county hospital fund;

7. Have authority to establish or participate in health related educational programs;

8. Have authority to procure and pay out of the county hospital fund premiums on any and all insurance policies required for the prudent management of the hospital, including, but not limited to, public liability, professional malpractice liability, workers' compensation, vehicle liability, life, health and accident plans, and to make contributions to the Public Employees' Retirement System of the state. The insurance may include as additional insureds the Board of Control and employees of the hospital;

9. Determine when there is a surplus in any of the funds of the hospital and if so determined may invest such surplus in United States Government Bonds or insured securities or in insured time deposits until such time as in the judgment of the Board of Control it is deemed advisable to use such funds for hospital purposes, including, but not limited to, the purchase of equipment, repair, remodeling or new construction of hospital property;

10. Either as a board or through the administrator, use reasonable diligence and efforts to make collections of accounts for hospital services rendered;

11. Have authority to adopt such bylaws, rules and regulations as the Board deems desirable for its own guidance and the administration of the hospital, not inconsistent with the law;

12. Have authority to undertake the management, lease or operation of any other medical facility or institution located outside of the county to provide a benefit to the community or lessen the burden of government and which does not solely provide a benefit by generating administrative fees; and

13. Do all things necessary for the management, control, and government of the hospital and exercise all the rights and duties pertaining to hospital boards generally, unless such rights are specifically denied or prohibited by law.

C. In the operation of a county hospital by the Board of Control the following funds shall be established in connection with a county hospital:

1. The proceeds from the sale of bonds, as provided in Section 784 of this title, shall be deposited in a fund known as the "County Hospital Bond Fund" in the treasury of the county, which shall be paid out by the county treasurer upon the orders of the board of county commissioners from time to time as the same is needed; and

2. The proceeds from the tax levy provided by Section 786 of this title, and funds received by the hospital for services or otherwise not specifically designated to a special fund by the Board of Control shall be deposited in the treasury of the county in the "County Hospital Fund". Current receipts by the hospital, including tuition fees of any school operated by the hospital, shall be deposited in the fund at least every week. The money in the "County Hospital Fund" shall be paid out only upon itemized and acknowledged claims duly approved by the Board of Control or in the procedure prescribed by the Board by warrants drawn by the administrator or such other person as may be designated by the Board of Control, which warrants must be authenticated by the treasurer of the Board of Control or a duly qualified officer of the Board of Control. If a county hospital shall operate a home for nurses, then the current receipts of the home for nurses shall be deposited with the county treasurer in the Home for Nurses Fund.

D. The Board of Control may by resolution establish such other funds as it deems advisable for the efficient and proper management of the hospital, which may or may not be in the county treasury, and prescribe the procedure for the handling, expending, and withdrawal of such funds. All checks to be signed by the administrator or his or her assistant and one member of the Board of Control.

1. If a majority of the Board of Control shall vote in favor of the establishment of a refund account, then the Board shall designate a bank and set up an account. Thereafter, when it becomes necessary to refund monies to a patient for the overpayment of an account, a check shall be drawn on the refund account, and after the check has been signed by the administrator or a designee and one member of the Board of Control, the same shall be delivered to the patient. The account may be replenished as deemed necessary.

After the establishment of the account, the administrator shall certify the list of actual refunds which have been made to patients during the interim since last approval. Upon acceptance by the Board of Control, the certified list of refunds shall be used to support the preparation of a warrant to be drawn on the county treasurer and charged to county hospital fund for the replenishment of the refund account.

2. If a majority of the Board of Control shall vote in favor of the establishment of a salary account, the Board shall then designate a bank covered by F.D.I.C., set up an account and deposit a warrant drawn upon the "County Hospital Fund", not to exceed One Thousand Dollars ($1,000.00) in amount, to open the account, and the necessary resolutions requisite to the establishment of an account shall be performed. Thereafter, as soon as the complete payroll has been prepared, a warrant shall be drawn upon the "County Hospital Fund" for the amount of the payroll and deposited in the salary fund of _______ Hospital. The individual payroll checks shall be signed by the administrator or a designee and one member of the Board of Control.

3. If a majority of the Board of Control shall vote in favor of the establishment of a Nursing Home Operating Account, then a bank account shall be opened in a bank designated as a state or county depository.

Thereafter the Board of Control shall draw a warrant on the county treasurer to be charged to the Nursing Home Fund, the warrant to be in the exact amount of a certified list of current obligations of the nursing home. The list shall be drawn by the administrator and certified by him or her to the Board of Control and shall contain the details of all expenditures to be made for the nursing home for the previous months' operations including salaries.

The proceeds of the warrant shall then be deposited in the Nursing Home Operating Account in the bank above designated. Thereafter the administrator shall prepare individual checks in payment of the list of current obligations. Provided, however, that the checks shall be signed by the administrator and by one member of the Board of Control.

4. If a majority of the Board of Control shall vote in favor of the establishment of a Petty Cash Account, then a warrant shall be drawn on the county treasurer in an amount not to exceed the sum of One Hundred Dollars ($100.00). The warrant shall be charged by the county treasurer to the Hospital Fund. The proceeds of the warrant shall be used for the payment of small bills for freight, postage due, minor expenses, et cetera, all of a minor amount; and the hospital shall secure proper receipts for the disbursement of the proceeds.

Thereafter, the administrator shall certify the list of petty expenditures and, after approval by the Board of Control, a warrant shall be drawn on the county treasurer, County Hospital Fund, for the replenishment of the petty cash account.

Likewise, and in the same manner, a petty cash account may be established in any nursing home or related institution of the same if operated by the hospital.

5. If a majority of the Board of Control shall vote in favor of the use of a facsimile signature machine in signing checks upon the "County Hospital Fund" or any other fund, a machine shall be utilized to imprint the facsimile signature of the administrator and the treasurer of the Board of Control upon the checks. Proper procedures must be implemented to control the use of the signature machine; such controls to be established by the Board of Control. Any person having a key to operate the machine shall be bonded by the county blanket bond and the company furnishing the machine shall furnish a surety bond in an amount not less than Ten Thousand Dollars ($10,000.00) to protect and indemnify against bogus or forged checks or warrants from being issued from the machine.

E. Any unencumbered balances in any of the funds of the county hospital at the close of the fiscal year shall not lapse, but shall be carried forward to the next fiscal year.

F. The provisions of the Oklahoma Statutes relative to counties or funds of counties, except Section 781 et seq. of this title, shall not be applicable to county hospitals.

Added by Laws 1963, c. 72, § 4, emerg. eff. May 21, 1963. Amended by Laws 1965, c. 287, § 1, emerg. eff. June 24, 1965; Laws 1970, c. 286, § 7, emerg. eff. April 27, 1970; Laws 1975, c. 191, § 1, emerg. eff. May 23, 1975; Laws 1980, c. 180, § 3, emerg. eff. May 13, 1980; Laws 2016, c. 233, § 2.